EU approves €87.7m Growth Plan package, Albania secures €32m for energy projects
The European Union has cleared a €87.7 million support tranche under the Growth Plan for the Western Balkans Investment Framework. From this first financing phase, Albania will receive €32 million for three power-sector projects aimed at grid reliability and clean-energy output.
Why is this important: The money targets bottlenecks in Albania’s electricity system—digitizing high-voltage substations, reinforcing Tirana’s supply, and extending the life and efficiency of the Fierza hydropower plant. The upgrades are designed to cut losses, handle rising demand in the capital and lift renewable generation, while aligning with EU energy standards.
Details: The €32 million will be deployed for three targeted investments that aim to cut grid losses, extend Fierza’s output, and meet Tirana’s surging demand.
- Digitalization of the transmission system: Covers 40 high-voltage substations nationwide to expand capacity and reduce losses. Total cost: €95.3m; EU grant: €10.5m. Completion: 2030.
- Fierza Hydropower Plant rehabilitation (Phase II): Extends plant life by 30 years, boosts efficiency by 4% and output by 10%. Total cost: €64.2m; EU grant: €13.6m. Completion: 2030.
- Rrashbull–Tirana line & Tirana Ring (400/220 kV): Expands the transmission network to meet fast-growing demand in the capital. Total cost: €61.1m; EU grant: €8m. Completion: 2025.
Regional context: Within this first Growth Plan phase, Montenegro has projects worth about €54m with approximately €10m financed by the EU while Serbia will fund two energy-diversification projects totaling €186m, with roughly €41m from the EU.
Go deeper
Albania’s annual inflation at 2.4% in July, leisure and culture prices lead gains
Published on August 24, 2025
Why is this important: Inflation holding near 2.4%, similar to the EU average at peak tourist season, means prices are generally stable for household despite the summer rush.
Durrës Archaeological Museum to reopen this fall following major renovation
Published on August 22, 2025
Why is this important: The project, part of the EU4Culture program implemented by UNOPS in cooperation with the Ministry of Economy, Culture, and Innovation, aims to transform the museum into a key cultural tourism destination.
Arbëresh Museum to open in Vuno, honoring centuries of Albanian heritage
Published on August 19, 2025
Why is this important: The museum will promote cultural tourism beyond the summer season, provide educational opportunities, and encourage community participation, fostering a deeper connection to Albanian identity for both locals and the wider diaspora.