Masdar & KESH to Build Renewable Energy Hub in Albania

Abu Dhabi Future Energy Company PJSC (Masdar) and Albania's Power Corporation, Korporata Elektroenergjitike Shqiptare (KESH), have entered into a joint venture agreement aimed at developing large-scale renewable energy projects across Albania. This significant collaboration marks a major step toward advancing Albania’s renewable energy capacity and bolstering its clean energy infrastructure.

Agreement Signed at COP29 with Distinguished Witnesses

The agreement was signed during a ceremony held in Baku, Azerbaijan, coinciding with the COP29 climate summit. The event was attended by notable figures, including the Albanian Prime Minister, His Excellency Edi Rama, Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President, and Masdar Chairman, along with Her Excellency Belinda Balluku, Albania’s Deputy Prime Minister and Minister of Infrastructure and Energy. Masdar CEO Mohamed Jameel Al Ramahi and KESH CEO Erald Elezi formalized the partnership on behalf of their respective organizations.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President and Chairman of Masdar, said: “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. Agreements like these will help realize the ambitious goals of the historic UAE Consensus, aimed at tripling renewable energy capacity by 2030, and driving low-carbon socio-economic progress.”

Her Excellency Belinda Balluku, Deputy Prime Minister & Minister of Infrastructure and Energy, commented: “The partnership between KESH and Masdar is a significant moment not only for Albania’s journey towards a sustainable and secure energy sector but also embodies the spirit of the strategic partnership between Albania and the United Arab Emirates and underscores the importance of international cooperation in achieving a green, sustainable future. By combining Albania’s rich renewable energy potential with Masdar's global expertise, we are not only advancing our domestic energy goals but also positioning Albania as a key player in the European energy market, while enhancing our energy security, creating new economic opportunities, and contributing to our efforts to meet global climate goals.”

A Comprehensive Approach to Renewable Energy Development

The joint venture agreement outlines plans to design, build, and operate a variety of renewable energy facilities, leveraging technologies such as solar photovoltaic (PV) systems, wind power, and hybrid solutions that may include battery storage integration. The renewable energy generated will primarily serve Albania's energy demands, with the potential for exports to neighbouring markets, strengthening Albania's role in the regional energy supply.

Leveraging Expertise for Albania’s Clean Energy Transition

Through this strategic partnership, Masdar and KESH aim to harness their combined strengths—KESH’s dominance in Albania’s energy sector and Masdar’s global expertise in renewable technology and project management. Masdar brings vital connections with technology providers and financial institutions, while KESH offers valuable local insights and established infrastructure. This joint effort supports Albania’s ambitions to reduce carbon emissions and contribute to Europe's sustainable energy future.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, added: "The joint venture term sheet with KESH will mark a significant milestone in Masdar's expansion into the Balkans and Southeast Europe. By combining our expertise in large-scale renewable projects with KESH's deep understanding of the Albanian energy market, we are poised to make a substantial contribution to Albania's clean energy transition. As Masdar targets 100GW by 2030, this joint venture with our partner KESH exemplifies the scale and ambition needed to advance the global energy transition and we look forward to further collaborations in Albania and the Eastern Balkans.”

Erald Elezi, Chief Executive Officer of KESH, said: “This joint venture with Masdar is a pivotal advancement in Albania’s renewable energy journey, underscoring KESH’s commitment to sustainable development and energy diversification. 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. By working with a global leader like Masdar, we are poised to bring innovative renewable technologies to Albania, supporting our role as a clean energy leader in the Balkans and strengthening the country’s position within the broader European energy landscape.”

Enhancing Regional Energy Security and Sustainability

The agreement between Masdar and KESH represents a key component of the broader UAE-Albania strategic partnership. By increasing Albania’s renewable energy capacity, the venture will help meet local energy needs and enhance the export potential to neighbouring countries. This aligns with regional goals for energy security and sustainability, highlighting Albania’s growing role in the renewable energy landscape of Southeast Europe.

Masdar’s Expanding Presence in Southeast Europe

Masdar is rapidly expanding its renewable energy footprint across Southeast Europe. Recent initiatives include its proposed acquisition of Greece’s TERNA ENERGY, a leading renewable energy developer aiming for a 6GW capacity by 2029. In the Balkans, Masdar has also advanced its investment portfolio with the financial close on the 154MW Čibuk 2 project in Serbia, complementing its operational 158MW Čibuk 1 wind farm, bringing Masdar’s total capacity in Serbia to over 300MW.