EU Assistance and Prospects of the Albania Energy Sector by Lorenc Gordani

Albania linked with the EU through the Stabilisation and Association Agreement from 2009. On 25 March 2020, the Council decided – and the members of the European Council endorsed this decision – to open accession negotiations with Albania. Furthermore, the Council tasked the Commission to report on several issues addressed by Albania before the first Inter-governmental Conference on accession negotiations.

Meanwhile, Albania has continued to meet all other conditions and has made further considerable, steady progress in addressing the other priorities highlighted by the Council. Chapter 15 of the Stabilisation and Association Agreement and Chapter 21 of Trans-European Networks reflect the related progress in the energy sector.

On above, the EU in Albania has continually supported the Energy sector in terms of investments or technical assistance. As a result, today, the country is moderately prepared in most areas related to the Green Agenda and sustainable connectivity, namely the trans-European networks, energy, and environment and climate change.

Regard the future, the green transition and sustainable connectivity are essential to economic integration within the region and the European Union, facilitating cross-border trade within the region and creating tangible benefits for businesses and citizens. This cluster and the reforms concerned have significant links to Albania’s Economic Reform Programme, the Commission’s Economic and Investment Plan and the Green Agenda for the Western Balkans.

The Western Balkans are an integral part of Europe and a geostrategic priority for the European Union. As set out by President von der Leyen in her State of the Union speech of 14 September 2020, “the future of the whole region lies in the EU”. Therefore, the Commission proposes an Economic & Investment Plan to support and bring the Western Balkans closer to the EU in October 2020.

This Economic and Investment Plan aims to spur the long-term recovery - backed by a green and digital transition - leading to sustained economic growth, implementing reforms required to move forward on the EU path, and bringing the Western Balkans closer to the EU Single Market. In addition, it aims to unleash the untapped economic potential of the region and the significant scope for increased intra-regional economic cooperation and trade.

Subject to the adoption of the next Multi-annual Financial Framework and the related legal bases, the Commission proposes to mobilise up to EUR 9 billion of IPA III funding for the period 2021-2027 to support economic convergence with the EU primarily through investments and support to competitiveness and inclusive growth, sustainable connectivity, and the twin green and digital transition.

The Commission proposes that most of this support would be directed towards key productive investments and sustainable infrastructure in the Western Balkans. The investment capacity of the region, in addition, should be boosted by the mobilisation of a new Western Balkans Guarantee facility, with the ambition to raise investments of up to EUR 20 billion potentially.

The Economic and Investment Plan for the Western Balkans foresees substantial infrastructure investments in Albania for years to come in the power sector, but also gas networks, railways, and roads, etc. To be able to benefit from it, Albania needs to improve its investment planning and implementation capacity. In the energy sector, Albania needs to accelerate the liberalisation of its electricity market and finalise the establishment of its power exchange to ensure its integration with neighbouring countries.

Author: Dr Lorenc Gordani is an Energy Lawyer and Pedagogue and Director of the Department of Masters at Tirana Business University (TBU), in addition to being a guest lecturer at many universities, including the Metropolitan University of Tirana (UMT) and Barleti University (UB), University of Shkodra Luigj Gurakuqi, as well as involved in many projects, including AFD/Gas Suez, IRENA, European Delegation, etc.

Disclaimer: All opinions expressed pertain to the author . While all efforts are made to ensure this publication's accuracy, it is not intended to provide legal advice as individual situations may differ and should be discussed with an expert. For any specific technical or legal advice on the information provided and its related topics, you can contact through “[email protected]”.

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