Locations
UNDP Albania
Market Transformation for solar energy PV acceleration
SUMMARY
The Project “Market transformation for solar energy PV acceleration” supports Albania's sustainable development by expediting the implementation of the NDC action plan to achieve the enhanced target. UNDP, with funding from the Government of Japan, has planned to install solar panels for energy generation in ten public buildings situated across four municipalities, is assisting to remove the market barriers and accelerate development of solar PV (reaching an additional installed capacity of 1000 kW) through enabling the policy framework, availability of financing mechanisms, ensuring supply of reliable technology and services leveraging experience, and know-how from other countries with relevant advanced technologies.
BACKGROUND
The project “Market transformation for solar energy PV acceleration” will support Albania sustainable development and accelerate implementation of the NDC action plan towards achieving the overall enhanced target. It will further support the transition process towards diversification from hydropower and promote alternative sources of renewable energy by 2030 42 % of renewable energy (rather than large hydro) in gross final energy consumption”. Main objective is to remove the market barriers and facilitate penetration of solar PV through enabling the policy framework, availability of financing mechanisms, ensuring supply of reliable technology and services leveraging experience, material, and resources, leveraging also on Japanese expertise and know-how for its expansion in Albania reaching a direct installed capacity of 1000 kW Solar PV within the lifetime of the project in 10 municipal buildings (1500 people-direct beneficiaries with new access to green energy and 250 people trained/educated and informed). In terms of indirect contribution, the project will contribute to the achievement of the national target of installed capacity of 490 MW solar PV in 2030, translated into 1600 new green jobs.
PROJECT ACHIEVEMENTS
The project, which began in December 2022, has made impressive strides towards its goals. To make the most of solar power, feasibility studies and technical specifications were conducted on ten public buildings across four municipalities - Shkoder, Klos, Diber, and Permet. To ensure smooth implementation, the Project team worked closely with the UNDP Global Support Unit in Copenhagen, Denmark, to complete the procurement process.
The GSOL Energy, an international company, has been contracted to begin procuring and installing ten pilot grid-connected solar photovoltaic systems. We expect the installation process to conclude by the end of November 2023.
Additionally, ongoing consultations are held with the National Energy Efficiency Agency. Their technical staff have been trained on the projects' feasibility, technical specifications, and development. The trainings (20 March and 27 June 2023 respectively) focused on renewable energy and energy efficiency in public buildings, based on concrete examples from the ten pilot projects.
The trainings were also delivered to the personnel of the National Agency of Natural Resources, Ministry of Infrastructure and Energy, and Municipalities of Shkoder, Klos, Diber, and Permet.
To further accelerate the solar photovoltaic market, the draft of the financing mechanism was provided by the end of February 2023. The work is continuing for the provision of governmental decrees following the new Law on Renewable Energy Resources (24/2023 adopted): detailed specification and content of two regulations drafted. They include: (i) Governmental decree on supporting measures of Renewable Energy Sources (Article 10/1), and (ii) Guideline for establishment and functioning of the Renewable Energy Communities (Article 21/6). Both drafts will follow the legislative procedure run by the Ministry of Infrastructure and Energy itself.
The project team has collaborated with the Albania-Japan Chamber of Trade and Industry (AJCCI) to provide feasibility studies to five interested businesses, offering them the opportunity to make informed decisions on purchasing solar power for their businesses.
To share the project’s progress with the public, a video story was produced and shared widely on UNDP’s digital platforms. These multimedia products have also been shared with the Japan Embassy to Tirana and the National Energy Efficiency Agency.
On 9 March 2023, UNDP Albania launched an internal information and advocacy campaign on climate change, with a focus on solar energy and sustainable forest management.
PROJECT OUTCOMES
- Enabling an environment of solar PV in Albania
Activities will include:
- National policies, codes, and standards supported such as existing legislation on renewable energy and power sector, secondary legislation, rules and regulations on deployment and integration of solar PV systems on the power grid and use of solar energy, e-based permissions as per the experiences gained by Japan, etc.
- Exchange of know-how on strategies for deploying solar PV and increase technical, planning, operational and entrepreneurial skills for integrating solar PV to the power grid and for organizing PV cooperatives and setting up PV firms. On the other side, technical assistance given to private sector on the benefits and economic feasibility of solar PV influencing a positive purchasing decision.
2. Increased demand for solar PV systems through the availability of attractive end-user financing mechanisms
Activities will include:
- Development of an economic model for catalyzing the use of solar PV systems, demonstrated through facilitation of an additional installed capacity of 1000 kW of Solar PV.
- Up to 10 pilot projects of solar PV systems installed in municipal buildings/national utilities in areas which has both, the highest solar and tourism potential, with high demonstration visibility and easily replicated. Pilot projects yield cost-effective energy savings, raise the confidence and capacity of investors and decision-makers about solar PV applications. They will also contribute to skills development for local producers/assemblers of solar panels as well as for service providers to operate and maintain them.
