EU, Germany, and Albania jointly breaking the ground for the construction of the 400-kV Transmission Line between Albania and North Macedonia
Construction of the first element of the high-voltage transmission line between Albania and North Macedonia has started today. The 400 kV line will be the first electric interconnection between Albania and North Macedonia and will enable direct electricity exchanges between both power systems.
The joint ground-breaking ceremony at Elbasan Substation was attended by Deputy Prime Minister and Minister of Infrastructure and Energy of Albania, Ms. Belinda Balluku, Ambassador of the European Union to Albania Mr. Silvio Gonzato, German Ambassador to Albania Mr. Karl Bergner, Director of KfW Office Albania Ms. Brit Horschke and relevant authorities from Albania.
The Project provides financing of EUR 15.7 million as a grant agreement provided by the European Union through the Western Balkans Investment Facility (WBIF) and EUR 50 million in loan by the German Government through KfW Development Bank. The transmission line will improve the integration of Albania into the regional power system and will strengthen the high voltage east-west connections by closing the 400 kV ring to Greece.
“This is a strategic project for Albania, the region, and the EU. We foster an open energy market and stronger regional cooperation, contribute to a unified European energy market, and align with EU climate goals. The new transmission line aids the transition to clean energy, facilitating renewable energy transmission within and beyond Albania. The EU is providing to Albania overall more than €125 million grants support for various energy programmes, all geared towards the energy transition. Energy will remain at the centre of our cooperation with Albania”, said EU Ambassador Silvio Gonzato .
The Project will further contribute to sustainable development of the Albanian economy, and to strengthening regional integration in the field of energy as well as improving the reliability of supply and enhancing regional trade in electricity between the two countries as well as in Balkans region overall.
It is a landmark delivery of the Regional Climate Partnership whose implementation was agreed between the WEB6 and Germany at the Tirana Berlin process summit in October 2023.
Background Information
In Albania, KfW finances the German Financial Cooperation through various projects and programmes. KfW provides grant aid and concessional loans for key investments and project-related consultancy services. German development cooperation with Albania started in 1988. Since then, the German Government has committed more than one billion EUR for development projects and programs. The energy sector is a priority area within the scope of German Financial Cooperation with Albania, with an active portfolio of 386 million EUR.
The WBIF is a joint initiative of the European Commission, the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), bilateral donors and Western Balkans beneficiaries launched in December 2009 with the purpose to deliver finance and technical assistance for strategic investments. The KfW and the World Bank subsequently joined the platform. In December 2018, the Agence Française de Développement (AFD) became a participating organisation in the WBIF.