The first In-depth energy efficiency review of Albania was completed in 2012 by a team of experts led by a representative of Switzerland and including representatives of Bulgaria and Italy, supported by the Energy Charter Secretariat.

The review team noted in the report the recent success of Albania’s energy policy in delivering a more reliable electricity supply and appreciated the fact that the Albanian government had followed through on the reform of the electricity market. The report highlights the fact that a solid energy efficiency policy could contribute strongly to achieving the targets and goals, which the Albanian government has set for the country’s energy sector. Much remains to be done to successfully implement the energy policy priorities identified by the authorities. These priorities include solar panel deployment, bill collection, illegal electricity connection elimination, awareness raising and incentives for energy efficiency. There are, without doubt, real resource constraints and the imperative is to maximise the effectiveness of policy measures.

Based on the review team's observations and assessment of the progress made by the country, the report makes a number of recommendations to the Albanian government to accelerate the pace of reform in the energy sector and to finalise the process of adoption of the existing draft pieces of legislation on energy efficiency and renewable energy. The report recommendations were endorsed by the Energy Charter Conference in November 2012.

Limited domestic energy resources, together with aging capital and incomplete market structures mean energy supply to support sustainable development in Albania has not always been reliable. Energy costs represent around 20% of the value of industrial production on average. Household energy growth is particularly strong in electricity, with increasing use of electric space heating, with winter peak demand now some 70% higher than the summer peak.

As part of Albania's programme to achieve the aims of the National Energy Strategy, the National Energy Efficiency Law sets out plans to improve energy efficiency. Significantly reducing transmission and system losses, enhanced enforcement of the energy provisions of the Building Code, greater use of solar hot water, improved insulation, use of decentralised heating and hot water systems, increased efficiency of boilers and use of new boilers, use of incandescent lighting and promotion of public transport and use of rail for freight are priorities for action. Full implementation of these energy efficiency policies is expected to reduce energy demand by 26%, thereby increasing domestic self-sufficiency from 25% to 39%, lowering energy sector investment needs by €690 million and reducing greenhouse gas emissions by 3.5 million tonnes per year.

This Regular Review was prepared by the Albanian authorities.