EBRD lends Euro 5.2 mln for two new HPPs

TIRANA, Sept. 24- London-based EBRD is supporting private sector investment in renewable energy generation in Albania with a Euro 5.2 million loan to the Hydro Power Plant of Korca sh.p.k., to finance the construction of two small hydropower plants in the eastern part of the country.
With the support of the EBRD loan, Hydro Power Plant of Korca will build two plants – Verbe-Selce 1 and 2 – due to become operational next year. With a combined capacity of 5 MW, the two plants will generate up to 23 GWh of electricity per year and help offset over 17,400 tonnes of CO2 annually. The EBRD financing is extended under the Bank’s Western Balkans Sustainable Energy Direct Financing Facility (WeBSEDFF).
“The construction of the Verbe-Selce SHPP Cascade reaffirms the EBRD’s great interest in renewable energy in Albania. This project will help improve security of energy supply and clearly demonstrates that the sector has the potential to become a key driver in the development of the Albanian economy,” said Fabio Serri, Head of the EBRD’s Resident Office in Albania.
Albania generates almost all of its electricity from hydropower plants, but has the potential to further increase its domestic production and become a regional player in the energy market. Rehabilitation of the hydropower sector and improvement of energy efficiency and dam safety is one of the country’s priorities.
Since the beginning of its operations in Albania, the EBRD has invested over Euro 700 million in various sectors of the country’s economy, mobilising additional investments of more than Euro 2 billion from other sources of financing.