The Legal Framework for Renewable Energy Sources in Albania in the Context of International and EU Commitments

Abstract

Abstract For Albania, renewable-energy development has particular strategic importance because the country combines a historically high dependence on hydropower with increasing electricity demand, exposure to hydrological variability, and the obligation to progressively align its energy legislation with the European Union acquis. This paper examines the legal framework governing renewable energy sources in Albania within the broader context of the country’s international climate commitments, obligations arising from membership in the Energy Community, and European Union accession process. Particular attention is devoted to Law No. 24/2023 On the Promotion of the Use of Energy from Renewable Sources, which represents a substantial step towards approximation with Directive (EU) 2018/2001 (RED II). The paper analyses renewable-energy targets, support mechanisms, competitive auctions, contracts for difference, guarantees of origin, self-consumption, renewable-energy communities, permitting, electricity-market integration, and the institutional responsibilities of the Energy Regulatory Authority. It argues that Albania has achieved significant formal convergence with the European renewable-energy model, particularly through the transition from administratively determined support towards competitive and market-oriented mechanisms. Nevertheless, important implementation challenges remain, including incomplete alignment with parts of the renewable-energy acquis, administrative and permitting constraints, grid limitations, market liquidity, institutional coordination, and the need to translate awarded renewable capacity into operational projects. The paper concludes that Albania’s principal challenge is progressively shifting from legislative approximation towards effective implementation and institutional convergence.