The Energy Community Secretariat today highlighted Albania’s key steps toward building a more competitive, transparent, and sustainable energy market. The country is aligning closer with European Union standards.

The Energy Regulatory Authority approved the Market Readiness Assessment Methodology, a crucial step in moving from long-term fixed-price contracts (PPA) to Contracts for Difference (CfD). This model supports renewable energy development through a free market.

Under the CfD model, producers sell their energy directly on the day-ahead market. The mechanism protects them from price fluctuations: if the market price falls, they receive the difference; if it rises, they return the extra profit.

The change aims to boost investor confidence, increase liquidity on the Albanian Power Exchange (ALPEX), and prepare Albania for integration into the EU internal energy market.

The Energy Regulatory Authority will complete the first market readiness assessment within six months, paving the way for full conversion of existing contracts to CfD.

The process has support from the European Bank for Reconstruction and Development and active guidance from the Energy Community Secretariat, which sees Albania as a model for other regional countries pursuing market-based renewable support schemes.

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