Abu Dhabi Future Energy Company (Masdar) and Korporata Elektroenergjitike Shqiptare (KESH) – the Albania Power Corporation – have formalized a joint venture term sheet agreement to investigate the potential for developing gigawatt-scale renewable energy projects in Albania.
According to a release, the signing ceremony occurred in Baku, Azerbaijan, during COP29, and was attended by notable figures including Albania’s Prime Minister Edi Rama, Dr. Sultan Al Jaber, UAE minister of Industry and Advanced Technology, COP28 president, and chairman of Masdar, along with Belinda Balluku, deputy prime minister and minister of Infrastructure and Energy for Albania.
The agreement was executed by Mohamed Jameel Al Ramahi, chief executive officer of Masdar, and Erald Elezi, chief executive officer of KESH.
Renewable energy development plans
This joint venture term sheet outlines plans to develop, construct, and operate renewable energy facilities that will employ various renewable technologies such as solar photovoltaic (PV), wind, and hybrid solutions, potentially incorporating battery storage capabilities. The energy generated is anticipated to be utilized within the Albanian market and exported to neighboring countries.
UAE’s commitment to clean energy
Dr. Al Jaber emphasized that the agreement underscored the UAE’s steadfast dedication to advancing clean energy solutions globally. He mentioned that by harnessing the UAE’s exceptional expertise in renewable energy alongside Albania’s rich natural resources, their specially designed, future-ready infrastructure would enable them to deliver increased energy output with reduced emissions to a larger population.
Support for UAE Consensus goals
Moreover, Dr. Al Jaber noted that agreements of this nature would support the ambitious objectives of the historic UAE Consensus, which aims to triple renewable energy capacity by 2030 while fostering low-carbon socio-economic development.
Significance for Albania’s energy sector
In her remarks, Balluku stated that the collaboration between KESH and Masdar marked a pivotal moment not only for Albania’s progress toward a sustainable and secure energy sector but also represented the essence of the strategic partnership between Albania and the UAE. She highlighted the importance of international cooperation in achieving a green and sustainable future.
Advancing domestic energy goals
Balluku added that by merging Albania’s extensive renewable energy potential with Masdar’s global expertise, they were not only furthering their domestic energy ambitions but also positioning Albania as a significant player in the European energy landscape. She expressed confidence that this would enhance energy security, create new economic opportunities, and contribute to global climate objectives.
Accelerating clean energy transition
The partnership aims to capitalize on KESH’s status as Albania’s leading energy producer and Masdar’s international experience in renewable energy development to expedite Albania’s transition to clean energy.
This potential joint venture represents a milestone in enhancing renewable energy capacity in Albania. It will benefit from Masdar’s connections with technology providers and financial institutions, leveraging its operational know-how while taking advantage of KESH’s local market insights and existing infrastructure.
Through this collaboration, Masdar and KESH are advancing Albania’s decarbonization efforts and contributing to the broader European energy framework.
Expansion into the Balkans
Al Ramahi noted that the joint venture term sheet with KESH would signify a major step forward in Masdar’s expansion into the Balkans and Southeast Europe. He explained that by merging their expertise in large-scale renewable projects with KESH’s in-depth understanding of the Albanian energy market, they were well-positioned to significantly impact Albania’s clean energy transition.
He added that as Masdar aimed for 100GW by 2030, this partnership with KESH exemplified the scale and ambition necessary to propel the global energy transition, and he looked forward to further collaborations in Albania and the Eastern Balkans.
Read more: UAE fostering global cooperation to ‘Accelerate Action Together’ at COP29
Pivotal advancement in renewable energy
Eledi also commented that this joint venture with Masdar represented a crucial leap forward in Albania’s renewable energy evolution, highlighting KESH’s dedication to sustainable development and energy diversification. He acknowledged that while Albania already enjoyed a predominantly green energy mix, this partnership would bolster energy resilience, enhance stability, and create pathways for clean energy exports to the region.
Strengthening Albania’s role in Europe
He concluded that by collaborating with a global leader like Masdar, they were set to introduce innovative renewable technologies to Albania, reinforcing their position as a clean energy frontrunner in the Balkans and solidifying the country’s role within the wider European energy landscape.
Strategic partnership for renewable growth
The joint venture term sheet between Masdar and KESH is a vital element of the broader strategic partnership between the UAE and Albania. It will play an essential role in expanding Albania’s renewable energy capacity, meeting local demand while supporting its energy export capabilities to neighboring markets, thereby contributing to the region’s energy security and sustainability objectives.
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