PV – ERBD finances a floating solar project in Albania
The power station will be built on the reservoir of the Vau i Dejës hydroelectric power station, which is managed by Korporata Elektroenergjitike Shqiptare. It represents a breakthrough in innovative green technology, using Albania’s rich solar resources while avoiding the use of rare earths.
The EBRD loan will be granted to a special purpose vehicle owned by KESH and created for the construction of the project. Structured as a project finance loan and granted on a commercial basis, the EBRD loan is the first such financing by an international financial institution and will help commercialize KESH, one of the largest utilities in the world. Albania.
KESH owns and operates three large hydropower plants with a total capacity of 1,350 MW which represent approximately 70 percent of Albania’s national production. The new solar photovoltaic power plant will help make KESH more resilient to climate-induced hydrology and seasonality risks.
The project also aligns with Albania’s broader ambition to develop its solar capacity, which has resulted in two successful auctions supported by the EBRD and offering very competitive tariffs: the 140 MW Karavasta project and the 100 MW Spitalle.
The EBRD has also mobilized € 315,830 for project preparation support, including in the context of preparation and implementation of green economy projects financed by the Austrian government (the DRIVE Fund) and by the TaiwanBusiness-EBRD technical cooperation.
Francesco Corbo, EBRD Regional Energy Officer for the Western Balkans, said: “We are delighted to support this groundbreaking project, which is another major milestone in the success of Albania’s campaign to increase its solar capacity and improve its energy mix. The project is remarkable for its innovative technology, its positive environmental impact and its commercial logic. It also has the potential to be replicated in the wider Western Balkans region, which has numerous hydroelectric reservoirs. This is our first opportunity to fund floating solar PV technology and we look forward to many similar projects in the future.
The EBRD is one of the main institutional investors in Albania. To date, the Bank has invested over € 1.5 billion in loans in 110 projects across the country.