Green for growth fund to invest in landmark renewable energy project in Albania
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- The investment in the 50MW solar project aims to mitigate climate change in Southeast Europe.
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TIRANA, March 11, 2023 - The Green for Growth Fund (GGF) has announced a EUR 28 million loan to fund a landmark transaction with SPV Blue 1 in Albania.
The privately owned project marks a significant milestone in the history of energy production in Albania, as it is the largest non-subsidized solar project in the Western Balkan Region, the company said in a press release.
The GGF's latest investment in Albania aims to tackle the challenge of underinvestment in renewable energy. This loan will provide funding for the construction and operations of a 50MW solar plant in Topoje, Fier County, Albania, covering up to 75 percent of the associated costs.
The project was also supported by GGF's Technical Assistance Facility, which provided support in augmenting the impact generated by the investment while ensuring that the project is developed in adherence to best international practices from an environmental, social, and technical perspective.
The project, which brings together a range of institutional knowledge and resources, has significant potential to create long-term impact for Albania, given the country's abundant solar resources, which have remained largely untapped. By diversifying the energy mix and reducing reliance on hydropower, the project will increase the stability and resilience of the energy system, providing a more secure source of electricity for Albanians.
This initiative is projected to significantly contribute to Albania's efforts to reduce CO2 emissions by 11.5 percent by 2030 compared to 2016 levels.
Projections indicate that the project will result in a reduction of approximately 1,900 tCO2 emissions per year and generate more than 108,000 MWh of clean energy annually. The expected environmental benefits of this project align with GGF's mission to promote renewable energy and drive climate change mitigation.
“GGF’s investment in this solar project in Albania is a testament to our commitment to accelerate the transition to renewable energy sources, a necessity for reducing dependence on fossil fuel and mitigating climate change. By investing in this project, we seek to demonstrate the viability of green energy projects and inspire other investors to follow suit," GGF Chairman Christopher Knowles said.
Besnik Leskaj, President of Blessed Investment sh.p.k. said: “Blessed Investment and Matrix Konstruksion’s partnership with GGF is a key milestone in the process of energy transition and renewable energy in the Western Balkan Region. The Blue 1 project is the first utility scale project in the Balkans under construction without any kind of subsidy from the Government. We would also like to recognize the Government of Albania for creating the conditions for it to happen. We will continue our close partnership with GGF to grow this first project.”
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB). The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Energy & Water GmbH, Frankfurt am Main acts as the technical advisor.
Blessed Investment invests in high-performing companies with high-potential in a range of sectors including renewable energy, infrastructure & engineering, environment, tourism, real estate, ICT, logistics and finance. Blessed Investment has grown a diversified business portfolio with projects in more than 10 countries and investing in more than 25 companies
The company creates long-term value by driving the growth and sustainability of its investments with the final goal to improve the standards of living in the world of tomorrow. The company is committed to good governance and creating responsible reliable businesses. It supports the application of sustainability best practices, fostering a workplace that is free from discrimination and where diversity of experiences, perspectives, and background create better value.
In 2021, Blessed Investment and Matrix Konstruksion co-founded SPV Blue 1 sh.p.k, a company focused on renewable energy with the innovative photovoltaic plant named “Project Blue”.
Matrix Konstruksion is a pioneering company in the construction industry in Albania and one of the largest property developers’ companies in the country, which was established 28 years ago.
The business portfolio of Matrix Konstruksion has been extended over the years with a wide range of projects investing in Civil Construction and Real Estate, Elite Tourism; Investments in Renewable Energy, Infrastructure and Transport; EPC (Engineering, Procurement and Construction).
“Our mission is to develop and deliver high quality projects, to promote urban and infrastructural development, which creates social and economic values for our customers, positively transforming their lives,” the company says.
