Regional Broadband Infrastructure Development

Albania – North Macedonia Power Interconnection: Grid Section in Albania

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Project Financing

WBIF Grant WB6-ALB-ENE-03 € 850,000
WBIF Grant WB12-ALB-ENE-01 € 600,000
KFW Loan € 50,000,000
National Contribution Own Contribution € 4,550,000
WBIF Grant WB-IG00-ALB-ENE-01 € 14,294,000
Total € 70,294,000
Total Grants € 15,744,000
Total Loans € 50,000,000

Project Description

Significant increases in annual power load and new generation sources added to the Albanian grid have put a strain on the existing transmission system, leading to frequent interruptions in electricity supply to domestic and industrial consumers alike. 

This investment project implements the Albanian part of the Albania - North Macedonia 400 kV power interconnection. The project is part of the European Commission’s initiative to establish an East-West electricity transmission corridor between Bulgaria, North Macedonia, Albania, Montenegro and Italy. This corridor is intended to allow for cross-border energy exchange, efficient use of existing/planned power capacities and better load flow balancing.  

The investments include:

  • Construction of Fier - Elbasan - Qafe-Thane 400 kV single circuit transmission line (approximately 130 km).
  • Construction of Elbasan 3 substation and reinforcement/extension of Fier substation. The new Elbasan 3 substation will comprise a 400 kV switching substation to connect the lines to Tirana 2, Zemblak, Fier and North Macedonia. In addition, two short overhead line connections with the existing substation Elbasan 2 are to be established. A shunt reactor is foreseen to be installed. In substation Fier, the existing 220 kV switchyard will be extended, and a new 400 kV switchyard will be established, accommodating an overhead line bay to Elbasan 3 and a transformer bay for the connection of one new 400/220 kV autotransformer.

The EU has provided technical assistance for project preparation and co-funds the investments under the Connectivity Agenda through the WBIF.

  • Countries: Albania
  • Code: PRJ-ALB-ENE-004
  • Sector: Energy
  • Lead IFI: KFW
  • Status: Implementation
  • Beneficiary: Ministry of Infrastructure and Energy; Transmission System Operator in Albania (OST sh.a)
Project financing split

Partner Financial Organisations

Western Balkans Partners