New law on the promotion of energy use from renewable sources

Official Bulletin no.26, dated 20 February 2017

On 2.2.2017, the Parliament of Albania approved law no. 7/2017 “On the promotion of energy use of renewable sources”, through which is created the legal framework on the promotion of energy use of renewable sources (BRE).

The aim of Law is the creation of the framework on the promotion of production of Renewable Energy Sources, in order to ensure a stable development in the Republic of Albania, in accordance with obligations of the country within the TKE; to reduce the import of organic fuel, emission of the greenhouse effect and protection of the environment; to incite the development of the market of electrical energy from renewable resources and its integration; to increase the diversification of the use of the energy sources and assurance of energy supplying Republic of Albania; as well as to encourage rural development of isolated areas, by improving their energy supply.

In the context of this aim, Law includes dispositions which determine national objectives on renewable energy produced by renewable sources in gross final consumption, as well as the measures taken in order to achieve these objectives through National Renewable Energy Action Plan, prepared and monitored from the responsible agency on renewable energy sources. Through the responsible agency on renewable energy sources, information on profits, costs and practical details on their development, as well as support measures is provided to all actor markets by also determining the liability of subjects who consume and produce BRE, to submit balance sheet tables of annual energy production, to the agency.

Regarding the supporting measures on electrical energy production by renewable sources, it is foreseen that the support on manufacturers giving priority to electrical energy, besides specifically determined cases by this law, is provided through a competitive tendering process, in form of a reward in order to achieve a defined price, as an addition to the referenced price, by specifying that regarding the production of electrical energy form renewable sources under 2 MW, the same conditions are not provided on manufacturers, by applying this exclusion only on installed capacities of electrical energy of 3 MW.

Renewable Energy Operator is the market operator responsible of invoicing and collecting payments on renewable energy liabilities, which together with OSSH is obliged to undertake the necessary steps regarding the development of transmission and distribution network infrastructure, intelligent networks, storage plants and electrical system energy.

Finally, the Law amends that the fulfillment of national liabilities on renewable energy regarding the use of renewable sources in every mean of transport, in accordance with national objectives on the use of renewable energy sources, is realized through legislation on production, transportation and marketing of biofuels and other renewable fuel on transport.