Limited domestic energy resources, together with ageing capital and incomplete market structures mean energy supply to support sustainable development in Albania has not always been reliable. Energy costs represent around 20% of the value of industrial production on average. Household energy growth is particularly strong in electricity, with increasing use of electric space heating, with winter peak demand now some 70% higher than the summer peak.
As part of Albania's programme to achieve the aims of the National Energy Strategy, the National Energy Efficiency Law sets out plans to improve energy efficiency. Significantly reducing transmission and system losses, enhanced enforcement of the energy provisions of the Building Code, greater use of solar hot water, improved insulation, use of decentralised heating and hot water systems, increased efficiency of boilers and use of new boilers, use of incandescent lighting and promotion of public transport and use of rail for freight are priorities for action. Full implementation of these energy efficiency policies is expected to reduce energy demand by 26%, thereby increasing domestic self-sufficiency from 25% to 39%, lowering energy sector investment needs by €690 million and reducing greenhouse gas emissions by 3.5 million tonnes per year.
This Regular Review was prepared by the Albanian authorities.
The Regular Review of Energy Efficiency Policies of Albania is available in English.