• Sector : Renewable Energy
  • Location : Albania
Scf Projects Details Albania Utility Scale Solar


SCF is considering a USD 45million investment in a Utility Scale Solar (“project”) in Albania that aims to repurpose 220 hectares of land that has been deemed unsuitable for agriculture due to high salinity into a high productivity energy generation site.

Albania has a widely underexplored potential for solar photovoltaic (PV) infrastructure. In addressing this, the country has begun exploring expanding solar PV projects twhich will be located west of the city of Fier.

The project is planned to scale up to 150 MW capacity over 16-18 months, with 280 000 Solar Modules and a Single Axis Tracking Structure, each with a capacity of 540-Watt Peak.  A second (optional) phase is being considered to construct an additional 40MWac as well.

The Challenge

At over 1,500 kWh/m2 a year, solar radiation is very high across most of Albania. However, Albania currently imports 30-60% of its energy due to a lack of solar PV infrastructure development, while hydropower currently represents about 95% of Albania’s electricity generation capacity. While the UNDP continues to support development of solar infrastructure in Albania, current solar generation in the country sits only at 1%, while a more diversified renewable energy portfolio would support the country’s energy security against climate change and  energy supply shocks.

SCF’s Involvement

  1. Proposed Investment

SCF is evaluating an investment of up to $45m to serve as capital and funding partner for the full development, construction, and operation of the Solar PV Project.

  1. Technical Assistance

The project has received Technical Assistance from the SCF for a prefeasibility study in grid emission factor, based on CDM’s Tool 07 to quantify the emissions factor in Albania. The tool requires to calculate the combined margin (CM) as a weighted average of the operating margin (OM) and the build margin (BM). The operating margin refers to the GHG emissions of existing power plants and the build margin refers to the GHG emissions of prospective power plants.


The information used for the calculation of the emission factor in Albania was taken from two main official sources of the country, one of them are the annual reports of 2019, 2020 and 2021  where are presented in detail the data on the progress of the Energy and Natural Gas sectors, as well as the comparison of some of the main indicators for each year, required information on the operational security of the network, the expected balance of demand and supply of electricity in the domestic market, the expected level of demand, production capacity, among others.


The Prefeasibility study found that:

  • While Albania’s reliance on hydropower makes their simple emission factor of 0, when accounting for energy imports from Montenegro, Kosovo and Greece, Albania’s energy factor was determined to be 0.289.


The project is planned to receive further Technical Assistance from SCF through a full feasibility assessment and ESIA, with the objectives of:

  • Ensure that all ecological risks are identified.
  • Complete stakeholder consultation in accordance with Gold Standard requirements.
  • Assess climate risks at the site.
  • Allow for the preparation of a comprehensive Environmental Social Management Plan (ESMP) to ensure that identified project risks are managed appropriately.

Our Target Impact

Our goal is to develop, build & operate the Solar PV project that will enhance energy diversification within Albania, leading to improved energy security as well as reduced hydrology risk and reliance on imports. We expect the project will positively impact the following Sustainable Development Goals: 

  • SDG 7 Affordable and Clean Energy

    SDG 7 Affordable and Clean Energy

    The project will tap into a new sustainable energy infrastructure potential for Albania with the massive potential of providing access to 298,791 MWh per year of affordable, clean energy. The project will diversify Albania’s energy grid which will reduce the country’s dependence on imports, thereby improving energy, political, and economic security.

  • SDG 8 Decent Work and Economic Growth

    SDG 8 Decent Work and Economic Growth

    The plant itself will employ 500 people during construction as well as another 50 during its operation. The project’s employment opportunities create space for the transfer of knowledge and in-house training initiatives. Finally, the project’s broader influence on Albania will reduce their dependence on energy imports, that have historically limited their economic growth.

  • SDG 13 Climate Action

    SDG 13 Climate Action

    The project is planned to avoid 90,668 tons of CO2 emissions per year by mitigating power generation from imported electricity sources. The project will also work to adapt the local environment through the management of site soils to minimize surface water runoff and erosion, particularly through the ecologically important wetland to the West.

The investment described above is a potential pipeline investment of SCF.  There can be no guaranty that the investment will be completed on the terms described or implied above, that SCF will be able to successfully invest in such investment or that impact targets will be achieved. 

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