Albania
Albania sends clear message on decarbonisation with new heating and cooling plan
With heating and cooling accounting for roughly one third of Albania’s final energy consumption and with renewables taking up only a fifth of it, the sector presents substantial opportunities to accelerate decarbonisation and energy system transformation.
Last week, Albania took an important step toward alignment with EU energy efficiency standards by submitting its Comprehensive Assessment of the Potential for High-Efficiency Cogeneration and Efficient District Heating and Cooling. Submitted to the Energy Community Secretariat, the assessment follows similar submissions by Serbia and Montenegro last year and signals a growing regional commitment to heating and cooling decarbonisation. The assessment provides the foundation for long-term policy development and sector planning, clearly signaling opportunities for green energy investment in the region to development partners, financial institutions, and private investors.
The opportunities in this regard are substantial. Heating and cooling in Albania remains a fully decentralised sector, accounting for approximately one third of total final energy consumption. Renewable energy sources currently cover only around 22–23% of this demand, underscoring the considerable untapped potential and the sector’s central role in Albania’s decarbonisation pathway.
The Comprehensive Assessment, moreover, highlights strong economic performance across a range of renewable technologies, reinforcing the economic case for clean heating solutions. Solar thermal emerges as the clear front-runner for domestic hot water across all sectors in industry, combining solar thermal with heat pumps unlocks additional economic benefits. For space heating, heat pumps are identified as a key transition technology. On a larger scale, district heating systems powered by biomass or hybrid solutions combining solar thermal and heat pumps stand out as cost-effective centralised options.
With the analytical groundwork laid, the focus now shifts to translating potential into concrete projects on the ground. The Secretariat commends Albania’s commitment and calls once again on other Contracting Parties to continue building on this momentum by finalising and notifying their own assessments.