Energy efficiency

State of compliance

Despite the progress previously achieved and the formal strengthening of the legal and institutional framework for energy efficiency, little was achieved by Albania to adopt the missing by-laws 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, including requirements to set the 2020 indicative energy savings target, adopt an EEAP and its monitoring, the exemplary role of the public sector, energy audits, measures for large consumers and promotion of the market for energy services. It also requires institutional strengthening and the establishment of an energy efficiency agency and an energy efficiency fund. However, it only partly transposed the provisions of Directive 2012/27/EU. Secondary legislation needed to implement provisions of the Energy Efficiency Law is also 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).

    With respect to the Energy Efficiency Directive, Albania missed the overall deadline of 15 October 2017 to amend the Law and fully transpose the Directive. 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).

    Albania also missed 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.

  • NEEAPs and targets

    NEEAPs and targets

    The 2nd and 3rd National Energy Efficiency Action Plan was adopted by the Council of Ministers in December 2017, albeit with considerable delay (deadline for submission of the 2nd NEEAP to the Energy Community Secretariat was 30 June 2013, and 30 June 2016 for the 3rd NEEAP).

    The 2nd and 3rd NEEAP emphasised 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.  The 1st Annual Report under the Energy Efficiency Directive was finally submitted in March 2018. The 2020 primary energy consumption target for 2020 was reported, amounting to 2,356 ktoe, and showed good country ambition and contribution to the overall Energy Community 2020 target. Submission of the 2nd Annual Report is pending.

  • 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, delay in the adoption of the by-law to introduce ESCO market procedures and model contracts and establishment of the energy efficiency fund to support ESCO projects in the public sector have led to no developments on the ESCO market to date.

    In June 2018, the model contracts and a legal gap analysis were  finalised and submitted to the Ministry of Infrastructure and Energy by EBRD and the Energy Community Secretariat, as part of an international technical assistance programme (REEP Plus). The Energy Efficiency Law and Public–Private Partnership legislation should be amended to align with new requirements imposed by the Energy Efficiency Directive. The contracting, registration and licensing of ESCOs should be clarified. 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 2nd and 3rd 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.

    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 in cooperation with the Secretariat.

     

  • 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. 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 as the Agency and the Fund are still not operational, and most of the activities are being performed solely by the Ministry of Infrastructure and Energy. The Energy Efficiency Agency was formally established by the Government in December 2016, but still without adequate human capacities to perform its role in the implementation of energy efficiency policy. The new EU funded project developed in cooperation with the Energy Community Secretariat is intended to strengthen the capacities of the Agency and support its activities. The Fund for Energy Efficiency, which will provide financial support to energy efficiency improvement measures in line with the National Energy Efficiency Action Plan, has not been established yet.