As Albania has pushed to diversify its electricity generation away from a near-total dependence on hydropower, several foreign renewables developers have seized the opportunity to win business. French global renewable energy company Voltalia has two planned solar photovoltaic plants in the Balkan country, having won tenders from the government. The 100-megawatt (MW) Karavasta project is planned to deliver its first electricity to the grid by the end of 2023.

Constantin von Alvensleben, country manager for Voltalia in Albania, talks to fDi about the opportunities and challenges facing energy investors in the country. As the former CEO of the country’s largest airport by passenger numbers, Tirana International Airport, he also reflects on the impact of increased interest from international tourists. 

Q: What is your assessment of Albania’s investment climate in the energy sector relative to its peers in the Western Balkans? 

A: Voltalia is particularly satisfied with Albania’s investment climate as the conditions in which we are pursuing two large solar projects in this country are very favourable. The Karavasta Project is already far along in its construction, and we plan to deliver the first megawatt hours by the end of this year. This shows a very swift implementation process which would not be possible in many other states. 

Our second project, Spitalla, will take off very soon. There is a great readiness by the Albanian government to support and promote projects that have gone through a competitive tendering process and where the winner was chosen for the attractiveness of their offer. The government has done well to put such large projects to the market and to support their implementation. To my knowledge, they are by far the largest projects in renewable energies in the West Balkans, and they are being implemented at high speed. 

Q: What regulatory changes would make it easier for businesses to invest and operate in Albania, particularly in the renewable energy sector?

A: Even if our two current projects — Karavasta and Spitalla — are moving forward at a good pace, we do face challenges for projects that may not have the same high priority for the government.  

Permitting processes often take a long time, and developers also face a shortage of qualified staff or are dealing with subcontractors without enough awareness of health, safety and the environment. These issues are particularly relevant for the development of renewables. However, there are broader issues affecting the business climate that are relevant for any foreign investor considering entering Albania.

Further growth in investment is very much dependent on the availability of suitable land for development; foreign investors face some challenges as prices of land have risen significantly. In addition, not every owner who might offer land to an investor may have full ownership title. Therefore, I can only advise any incoming investor to check the titles closely, and to rely on professional legal advice before making any investment.

Q: Has Albania’s tourism boom created opportunities for investors?

A: Tourism is another sector that is developing dynamically, as I witnessed in my previous role as CEO of Tirana International Airport until 2022. Albania has become increasingly sought after as a touristic destination and, as a consequence, visitor numbers have grown so strongly that this has triggered large investments in airport, hotel and road infrastructure.