State and Resilience Building Contract for Albania Annual Action Plan contributing to the Western Balkans Energy Support Package in favour of Albania for 2023
National IPA Coordinator Prime Minister’s Office (NIPAC) in coordination with Ministry of Infrastructure and Energy and Ministry of Finance and Economy.
Beneficiaries: Government of Albania
24.03.2023 - 23.03.2025
Overall Objective
The overall objective of this Action is to assist Albania through targeted growth-enhancing policy measures aimed at mitigating the socio-economic impact of the energy crises and in particular on small and medium sized enterprises and households, and to strengthen the Government’s overall capacity to deliver measures to reduce the likelihood of energy poverty, particularly of the most vulnerable segments of the population, and to support long-term socio-economic recovery, energy security and energy resilience and diversification of Renewable Energy Systems of Albania.
The Specific Outcomes of this action are to:
- Socio-economic impact of energy crisis is mitigated, with a special focus on vulnerable households;
- Socio-economic recovery and economic growth for SMEs are supported to cope with the combined negative effects of the rise in energy prices and the COVID-19 crisis;
- Albania’s mid- and long-term objectives of energy resilience are supported, including increasing energy efficiency and promoting the use and diversification of renewable energy sources.
Summary of the Project
The Action consists of a SRBC to mitigate the immediate socio-economic impact of the energy crisis and set the basis for building energy resilience in Albania. The budget support contract will contribute to the government’s resources allowing for measures to reduce the likelihood of energy poverty by assisting the SMEs and vulnerable households, ensure their continuous delivery and access to essential services, particularly to the most vulnerable segments of the population and to support long-term socio-economic recovery, energy security and energy resilience and diversification of Renewable Energy Sources (RES) of Albania.
Activities
Activities related to Output 1.1
The activities aim to provide assistance to the Albanian government and authorities to increase the capacity to deliver such basic services to its population in the fiscal year 2023 and in particular to the vulnerable groups and to extend such actions to cover more vulnerable households and consumers. Overall, these activities will aim to provide immediate assistance to counteract the rising levels of energy poverty throw:
- continued subsidies for households to counter the price increase of energy bills throughout the state of emergency period
- continued support to vulnerable categories of people that are beneficiaries of economic aid schemes with an allowance for energy supply
Activities related to Output 2.1:
Activities will include support to SMEs to reduce the effects of the energy prices in order to ensure sustainability of their economic activity and prevent increase of unemployment.
In addition to the direct support for subsidising the electricity price for SMEs during 2022-2023.
Activities related to Output 3.1:
The focus of activities will be on sectors where energy efficiency gains can be most effectively realised. To do so the action will be supporting:
- Legislative changes to promote of use of energy from Renewable Energy Sources
- Making the established power exchange APEX operational and coupling it with the regional and European markets.
- Progress in development and implementation of projects for diversification of RE production through solar and/or wind.
- Promotion of solar energy for water heating for households
- Implement energy efficiency in public buildings, i.e. EE retrofitting and/or installing solar panels
Results
The Outputs to be delivered by this action contributing to the corresponding Outcomes are:
1.1 contributing to Outcome 1: Measures to support households and vulnerable groups are put in place to fight against energy poverty.
2.1 contributing to Outcome 2: Support measures to SMEs are in place to protect them from increased electricity market prices.
3.1contributing to Outcome 3: A short to medium term energy resilience strategy/action plan is developed.
