TIRANA (Albania), June 16 (SeeNews) – The Albanian Ministry of Economy has announced that it has signed a 100 million euros ($ 121.2 million) loan agreement with the German public development bank (KfW) to support energy sector reform.
The loan is expected to support a major reform package that contributes to a liberalized, transparent and fair energy market in Albania, the ministry said in a press release on Tuesday.
The loan has a maturity of 12 years, including a three-year period without repayment of principal, the ministry noted.
“We are delighted that Albania has taken important steps in the reform of the energy sector. It will also have positive effects on other branches of the economy as well as on citizens, ”German Ambassador to Albania Peter Zingraf said in a separate statement on Facebook.
Albania could use solar and wind resources to diversify its energy sources, thereby reducing its dependence on precipitation, mitigating its exposure to external factors and building stability, according to a report by the International Renewable Energy Agency (IRENA ) published in March.
The country’s profitable solar and wind potential is estimated at more than 7 gigawatts (GW), or more than three times its total installed electric capacity, the agency noted, adding that the country has one of the highest shares of renewable energy in South East Europe. , but its dependence on hydroelectric power sources makes it vulnerable to climate externalities.
($ = 0.82474 euros)