The Albanian government has prepared a new draft law “On promoting the use of energy from renewable sources”, which is expected to replace the current law of 2017, creating spaces for a more flexible treatment of self-producers of energy from renewable sources, according to the analysis provided by Monitor.
The current law allows the production of energy from the sun or wind for personal business or family needs up to an installed capacity of 500 kW. This year some producers, mainly businesses, have asked the Ministry of Energy that the balance of produced energy be annual, not monthly.
The current law provides that, per the metering scheme, a small or medium-sized utility or a household customer can install a total capacity of up to 500 kW for the production of electricity from wind or solar to cover part or all of the energy needed for its needs and inject the excess energy produced into the distribution network.
Under the net energy metering scheme, customers must install a two-way meter at their own expense, and the net balance and billing are done monthly for each metering point.
The draft law provides that the Council of Ministers will determine (among others) the annual period to measure their production.
Another innovation brought by the draft law is recognising the right of small producers to market the surplus of produced energy freely. The current law provides that the surplus of electricity greater than the monthly consumption is thrown into the distribution network and sold to the universal service supplier, charged with the public service obligation, according to the price set by ERE.
If passed, the law states that renewable self-consumers will have a maximum capacity of 500 kW and will have the right to generate, consume, store and sell excess renewable electricity production, including through bilateral agreements, without facing discriminatory or disproportionate burdens.
56According to the draft law, the price of electricity generated by self-renewable consumers must provide a fair compensation that reflects the market value of the energy supplied to the grid and will avoid cross-subsidies or unfair discrimination between self-renewable consumers and other consumers.
Russia’s attack on Ukraine and the knock-on effects of the war have caused electricity prices to rise to unprecedented levels. The increase in energy prices has increased the interest in investments in renewable energy for personal consumption, especially from businesses.