Page 124 - bne IntelliNews Southeastern Europe Outlook 2025

7.0 Energy & Power
7.1 Energy & Power – Albania
Albania generates almost all of its electricity from hydropower. This results in fluctuations in power generation caused by precipitation patterns. When rainfall is low, the country is forced to import electricity from neighbouring countries.
The latest data from statistics office Instat shows that net electricity production dropped by 2.9% to 1,565 GWh in 3Q24 compared with 1,611 GWh in the same period of 2023.
Electricity imports rose slightly by 1% to 762 GWh, while exports dropped sharply by 37.8% to 282 GWh. This created a negative electricity exchange balance of 481 GWh, worse than the 302-GWh deficit recorded in 3Q23.
Public hydropower plants (HPPs) accounted for 69.5% of production, with independent producers contributing 18.7%.
Albania is working to diversify its sources of electricity, including through investments into solar power. In 3Q24, other producers, namely renewables, generated increased output significantly, producing 185 GWh compared with 30 GWh in 3Q23.
In the hydrocarbons sector, Albania's state-owned oil company AlbPetrol estimates the country has recoverable reserves of approximately 120mn barrels of oil and 5.7 bcm of natural gas. The Patos-Marinza oilfield is one of the largest in continental Europe.
In early 2024, disappointing news emerged regarding Shell's operations in Albania. According to the company's quarterly update released on April 5, Shell anticipated a $600mn write-off for its exploration activities, much of which related to its projects in Albania.
This contrasted sharply with earlier government statements suggesting Shell could invest up to €7bn in developing the Shpirag field. Following Shell's announcement, Albania's Ministry of Infrastructure and Energy issued a statement denying reports of the company's withdrawal from oil exploration in the Shpirag region.
Meanwhile, Eni Albania, a subsidiary of the Italian energy giant Eni, has revised its timeline for preparatory work on the Dumrea Deep I oil well. These activities are now scheduled to commence in December 2024 and conclude in the first quarter of 2025. Eni was originally awarded the Dumre Block in 2019.
On the downstream side, Albania's refining infrastructure includes two
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