Albania announces suspension of subsidies for new hydropower plants

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Guaranteed power purchase schemes produced at small hydropower plants cost the Albanian government about 40m euros a year. According to Belinda Baluku, Minister of Infrastructure and Energy, this system is not efficient, so it is time to end subsidies for new hydropower plants.

Baluku also assessed that state support for small solar power plants has been misused, although diversification of energy sources is necessary for Albania, which currently produces over 95% of its electricity from water.

According to Baluku, the subsidy schemes will in future be focused on energy storage, with the aim of reducing imports.

Electricity imports are one of Albania’s main problems in 2019 due to the prolonged drought. By the end of November, OSHEE had spent about € 145 million on electricity imports.


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