Lack of Administrative Instruction Creates Deadlock in Albanian Residential PV Market

Feb 1, 2019


In 2017, the Albanian Parliament adopted the Law on the Use of Energy from Renewable Resources. This law aims to boost domestic energy production, such as solar energy. However, the lack of an administrative instruction from the Ministry of Energy has created a deadlock in the photovoltaic market. If a photovoltaic system produces more energy than the customer requires, the consumer cannot transfer the surplus energy into the OSHE network, so there is no instruction on network energy transfer.

According to the data of the Institute of Statistics of Albania, in 2017 Albania covered 60.8% of electricity consumption from domestic production. 39.2% of consumption was covered by imports. Energy from photovoltaic systems could significantly reduce the amount of electricity imports during droughts.

According to Elton Çerkizi, Executive Director of the company “Euroelektra”, the exchange of energy does not happen because of the lack of an Instruction by the Ministry of Energy for OSHE, which determines with which report OSHE receives and returns the energy to the producers. Among the possible forms of this agreement, Çerkizi mentions "net-metering", a form which is implemented in many European countries. "Net-metering" foresees that the if producer produces surplus energy that electricity can be transferred onto the power grid allowing customers to offset the cost of power drawn from the utility.

Article 15, point 4 of the Law on Promotion of the Use of Energy from Renewable Resources states that: "The Minister shall approve by an instruction a simplified procedure for authorization to connect to the distribution system of small renewable energy projects.

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