Energy efficiency

State of compliance

Despite the formal strengthening of the legal and institutional framework for energy efficiency, little was achieved by Albania to adopt the missing by-laws implementing the Energy Performance of Buildings Directive and update legislation to transpose Directive 2012/27/EU on energy efficiency. Albania thus remains non-compliant in many areas.

  • Energy Efficiency Directive

    Energy Efficiency Directive

    Albania adopted the Law on Energy Efficiency in November 2015, partly transposing Directive 2012/27/EU. Secondary legislation needed to implement provisions of the Energy Efficiency Law is mostly missing, despite the fact that the deadline for adoption of secondary legislation expired in December 2016 (twelve months after the entry in force of the Law). The Law on Energy Efficiency was amended in mid-2019 in the framework of the deregulation reform in order to simplify the qualification, accreditation and certification procedures for energy auditors and energy managers. Two by-laws that define the new qualification, accreditation and certification criteria and procedures for energy auditors and energy managers were approved in May and June 2019 respectively.

    Albania missed the overall deadline of 15 October 2017 to amend the Law and fully transpose Directive 2012/27/EU. Of particular importance was Article 4 (Building renovation strategies), Article 7 (Energy efficiency obligation schemes), Article 14 (Promotion of efficiency in heating and cooling), Article 15 (Energy transformation, transmission and distribution), Article 24(1) and Annex XIV (reporting on targets).  

    During 2018 and 2019, Albania received support from the REEP Plus Programme to revise the Law on Energy Efficiency and ensure full harmonisation with the Energy Efficiency Directive. The draft version of the revised Law was submitted in May 2019. The Ministry is yet to finalise and adopt these amendments.

    Albania also missed a number of specific reporting deadlines foreseen by the Energy Efficiency Directive, as follows:  30 March 2017 for Article 4, 1 January 2017 for Article 5, 15 March 2017 for Article 7, 30 November 2018 for Article 14, 30 June 2019 for Article 24(1) and 30 April 2019 for Article 24(2).

  • NEEAPs and targets

    NEEAPs and targets

    Albania missed the 30 April 2019 deadline for submission of the new National Energy Efficiency Action Plan, as required by the Energy Efficiency Directive.   

    The Annual Report under the Energy Efficiency Directive, due in June 2018, was submitted in March 2019, with reporting on the primary energy consumption target for 2020. However, submission of the Annual Report due in June 2019 is pending.

    The current NEEAP emphasises energy saving measures in residential, public and transport sector, where most savings are expected to be achieved. It set the 2020 energy efficiency target represented in cumulative final energy savings, amounting to 123.7 ktoe in 2020. 

    In order to have a functioning monitoring, verification and reporting system for energy savings, GIZ Open Regional Fund for South-East Europe – Energy Efficiency (ORF-EE) has supported the Ministry of Infrastructure and Energy and the Energy Efficiency Agency with a server unit and software for an "MVP web tool" in parallel to trainings and capacity building.

  • ESCO market development and financing

    ESCO market development and financing

    The 2015 Energy Efficiency Law introduced the ESCO concept and energy performance contracting. The NEEAP also includes measures to support the development of model contracts and the market for energy services. However, the current lack of the necessary by-laws and an energy efficiency fund to support ESCO projects in the public sector has resulted in no developments on the ESCO market to date.

    As part of an international technical assistance programme (REEP Plus), the missing ESCO model contracts and a legal gap analysis were finalised in June 2018. In May 2019, the relevant amendments to the Energy Efficiency Law were submitted to the Ministry by EBRD and the Energy Community Secretariat. The proposed amendments clarified the role of the Energy Efficiency Agency and the NEEAP regarding the current and future development of the energy services market, and proposed a standardised template to be used by qualified and registered energy service providers in the public and private sectors.

    A greater focus needs to be put on capacity building of the authorities and simplifying the project approval procedures.

  • Energy efficiency in buildings

    Energy efficiency in buildings

    With regard to energy efficiency in buildings, the Law on the Energy Performance of Buildings was adopted in November 2016, which brought to an end the dispute settlement case initiated by the Secretariat (Case ECS-10/16).  However, there was little progress with respect to the adoption of secondary legislation to enable the Directive’s implementation, which is needed to achieve full compliance with Directive 2010/31/EU.

    The focus of the National Energy Efficiency Action Plan is the buildings sector and measures for public and residential buildings rehabilitation. It also envisages a 2% annual renovation rate of public buildings. However, only a limited number of renovation projects has been carried out to date, mostly by donations from foreign funds (KfW).

    In 2017, energy efficiency in buildings, previously falling under the responsibility of several institutions, was brought under the competence of the newly established Ministry of Infrastructure and Energy. In November 2017, the Ministry established a technical working group to prepare a methodology for calculating the energy performance of buildings, minimum energy performance requirements and certification procedures. This work is ongoing and supported by the Regional Energy Efficiency Programme Plus in cooperation with the Secretariat. Final drafts are being submitted and discussed as of August 2019, and should be adopted as soon as possible.

  • Energy efficient products - labelling

    Energy efficient products - labelling

    The Law on Information of the Consumption of Energy and Other Resources by Energy-Related Products of June 2012 transposed the framework Energy Labelling Directive 2010/30/EU.

    However, the development of secondary legislation for energy labelling of certain products is still pending, including those transposing the EU regulations adopted by the Ministerial Council in September 2014 and November 2018. Albania is still not in compliance with the Labelling Delegated Acts.

  • Institutional capacities

    Institutional capacities

    According to the Law on Energy Efficiency, the main state institutions responsible for the creation and implementation of national energy efficiency policy are the Ministry of Infrastructure and Energy, the Energy Efficiency Agency and the Energy Efficiency Fund. However, the current institutional capacities are weak.

    The Fund, which should provide financial support to energy efficiency improvement measures in line with the National Energy Efficiency Action Plan, is still not operational. Most of the activities are being performed solely by the Ministry of Infrastructure and Energy and the Energy Efficiency Agency.

    The Energy Efficiency Agency was formally established by the Government in December 2016. During late 2018 and early 2019, it was partially staffed with a director and five experts. The removal of the director in June 2019 negatively impacted ongoing support by an EU funded project developed in cooperation with the Energy Community Secretariat intended to strengthen the capacities of the Agency and support its activities.