Albania’s KESH in line for EBRD loan for 50-MWp solar project

Albanian state-owned energy corporation KESH is in line to receive a loan from the European Bank for Reconstruction and Development (EBRD) to build a 50-MWp solar farm in Belsh, central Albania.

The EBRD is exploring granting a EUR-30-million (USD 32.1m) sovereign-guaranteed loan to KESH to contribute to the EUR-40-million solar project, according to the project summary document posted on the bank’s website. The project is also expected to receive an EUR-8-million investment grant from the Western Balkans Investment Framework (WBIF), the EU’s investment and development initiative for the candidate countries in the Balkans.

KESH will cover the remaining costs of the project.

The company will use the funds to install a solar farm and associated substation on a greenfield site in the municipality of Belsh, and build a new 9-km long 110-kV overhead power line.

The project represents an opportunity for KESH to diversify its largely hydro-based power generation mix. The company owns and operate three hydropower plants with a combined installed capacity of 1,350 MW, which account for around 65% of Albania’s electricity production, the EBRD said.

The bank has set July 17, 2024, as the loan approval date.

(EUR 1.0 = USD 1.071)

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