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Masdar and state-owned power utility KESH signed a joint venture term sheet agreement to explore the development of gigawatt-scale projects in Albania. The renewable electricity plants, potentially with storage, would supply power to the country and its neighbors.
Abu Dhabi Future Energy Company PJSC (Masdar) has set its sights on Southeastern Europe for expansion, within its efforts to reach 100 GW in green energy capacity by the end of the century. On the sidelines of the United Nations Climate Change Conference COP29, the renewables giant from the United Arab Emirates has just made another step toward the goal. The company signed a joint venture term sheet agreement with Albania’s state-owned power utility KESH.
They said the aim is to explore the deployment of gigawatt-scale projects in the country. The joint venture would focus on photovoltaics and wind power as well as green hybrid power units, potentially with battery energy storage systems (BESS).
Masdar and KESH said the idea is to supply power to Albania as well as neighboring countries. Chief executive officers Mohamed Jameel Al Ramahi and Erald Elezi signed the deal.
The ceremony was attended by Prime Minister of Albania Edi Rama, Chairman of Masdar and the UAE’s Minister of Industry and Advanced Technology Sultan Al Jaber, and Deputy Prime Minister and Minister of Infrastructure and Energy of Albania Belinda Balluku.
Joint venture would develop, build, operate
The document outlines the principal terms for a joint venture that would develop projects and build and operate renewable energy plants.
“This agreement is a testament to the UAE’s unwavering commitment to pioneering clean energy solutions on a global scale. By leveraging the UAE’s world-class expertise in renewable energy and Albania’s abundant natural resources, our purpose-built, future-ready infrastructure will deliver more energy with fewer emissions to more people than ever before,” said Al Jaber, who was also president of COP28.
Masdar sees the potential joint venture benefitting from its relationships with technology providers and financial institutions
Combining the rich domestic renewable energy potential with Masdar’s global expertise will position Albania as a key player in the European energy market, while enhancing its energy security, creating economic opportunities and contributing to the government’s efforts to meet global climate goals, Balluku pointed out.
Masdar said the potential joint venture would benefit from its relationships with technology providers and financial institutions, as well as its operational expertise. Additionally, it would capitalize on KESH’s local market knowledge and existing infrastructure.
Albania to tap on Masdar’s global expertise to diversify away from hydropower
The joint venture term sheet will mark a significant milestone in Masdar’s expansion into the Balkans and Southeast Europe, CEO Al Ramahi said and hinted at further collaborations in Albania and the region.
“Although Albania already benefits from a predominantly green energy mix, this partnership will enhance our energy resilience, improve stability, and open avenues for clean energy exports to the region,” KESH’s Elezi stated.
The country relies on hydropower for almost 100% of domestic electricity production, so the government is looking to diversify the sector. Namely, the capacities are insufficient to cover Albania’s consumption and increasingly frequent droughts are boosting the need for emergency power imports.
So far only the photovoltaic segment has shown solid growth. Albania hosts the largest solar power plant in the Western Balkans – Karavasta.
Deal with KESH is part of UAE-Albania strategic partnership
The new joint venture term sheet is a crucial component of the broader strategic partnership between the UAE and Albania, Masdar underscored. Prime Minister Edi Rama earlier said the two countries are looking to join forces with Italy to install an undersea power interconnection between Albania and Italy. The project is valued at EUR 1 billion.
The company is working on a similar joint venture with Romania’s Hidroelectrica.
Masdar strengthened its presence in Southeast Europe with the proposed acquisition of Terna Energy. The European Commission allowed the transaction last month. The Greek firm has a target capacity of 6 GW by 2029.
Additionally, joint venture Masdar Taaleri Generation recently reached a financial close on its 154 MW wind power project Cibuk 2 in Serbia. Together with the adjacent Cibuk 1 wind power plant, the portfolio in the country amounts to 312 MW.
Serbia is considering the possibility of formalizing the cooperation with Masdar through a bilateral agreement, Minister of Mining and Energy Dubravka Ðedovic Handanovic said last month. |
