The Albanian government has approved the establishment of a state-owned company responsible for purchasing renewable electricity and selling it on the market. The new company, named the Renewable Energy Operator (OER), will also manage the country’s green power support fund. The decision aligns with the Law on the Promotion of the Use of Energy from Renewable Sources, and was officially approved by Albania’s Council of Ministers.

OER will take over the responsibility of purchasing electricity from renewable energy producers under Contracts for Difference (CfDs) and paying them premiums. Previously, this task was handled by the Free Market Operator, which is part of the distribution system operator OSHEE. The company will buy electricity from wind and solar plants that have received premiums through renewable energy auctions and sell it on the market. Notably, Albania currently has no operational wind turbines, although the renewable energy sector is growing. OER will also oversee the renewable electricity support fund for CfDs and premiums for state-owned priority producers.

Albania’s energy sector has historically relied almost entirely on hydropower, which continues to be the dominant source of domestic electricity production. The Renewable Energy Operator will be tasked with developing an operating model for photovoltaics, wind power, and hydropower, based on best practices from the European Union. The company will begin with an initial capital of EUR 510,000, funded by the state budget.

In related news, the GreNNat Solar Park in Ballsh has received approval from Albania’s Energy Regulatory Authority to begin production from its first 25 MW of a planned 100 MW total capacity. The remainder of the facility, located in Fier county in the country’s south, is expected to be commissioned by January 11, 2028. The project is owned by Info Telecom-Alb Solar 3.