Fast Facts
| Trading Licence | ERE trading licence required for wholesale electricity trading, valid up to 5 years |
| Local Entity | Foreign traders must establish an Albanian LLC or branch unless a mutual-recognition exemption applies |
| Market Registration | Form A1 market registration with the TSO-MO and financial guarantee to OST |
| Power Exchange | ALPEX is the single exchange, jointly owned by OST and KOSTT |
| Generation Mix | Hydropower supplies over 90% of generation; installed capacity about 2.8 GW |
| Renewables | About 96% renewable installed capacity including large hydro; NECP targets 1 GW solar by 2030 |
Albania Power Market Fundamentals
Albania's electricity market has been progressively liberalising since 2018, with the new Electricity Sector Law No. 59/2026 in force since June 2026. The law defines bilateral, exchange, balancing, capacity and ancillary market segments and formalises ALPEX as NEMO.
Generation is hydropower-driven, with more than 90% of output from hydro. Installed capacity is about 2.8 GW and about 96% renewable, including large hydro. Solar is growing quickly, from 28 MW in 2022 toward a projected ~812 MW by 2030 based on current trends, short of Albania's official NECP target of 1 GW.
When Is a Licence Required in Albania's Power Market?
An ERE trading licence is required for wholesale electricity trading, governed by the new Electricity Sector Law (No. 59/2026, in force since 30 June 2026).
Applicants must complete Form A1 market registration with the TSO-MO and register with ERE under REMIT before starting activities. Entities without an Albanian establishment must set up an LLC or branch, unless a mutual-recognition exemption applies.
Trading via ALPEX's ERE-licensed auctions requires membership; bilateral (OTC) trades settle directly through OST.
What Are Albania's Power Market Licence Requirements for EU and Non-EU Entities?
Non-EU traders must set up an Albanian LLC or branch to hold an ERE trading licence, unless a mutual-recognition exemption applies. Once established, they follow the same steps as domestic entities: ERE licence (or recognition), market registration, and OST balancing/collateral.
Energy Community, EU, or bilateral-agreement licence holders may be exempt from a new ERE licence if they submit a translated and notarised copy of their home licence to ERE.
All traders (EU and non-EU) must complete Form A1 market registration with the TSO-MO and post a financial guarantee to OST before starting activities.
Balancing in the Albania Power Market
Balancing Responsibility Model: Market participants regulate balancing responsibility either directly as a Balancing Responsible Party (BRP) with OST, or by joining a Balancing Group under another BRP.
BRP Registration: OST maintains a public BRP Register and requires a signed BRP Agreement, setting out the terms between OST and the BRP, before market access.
Legal Basis: Balancing is governed by the new Electricity Sector Law (No. 59/2026, in force since 30 June 2026), the Albanian Electricity Balancing Market Rules, and the Electricity Market Rules.
Recipient & Timing: Registration sits with the TSO-MO, prior to commencement of activities or acceding the market; no periodic resubmission is required.
Ancillary Services: OST separately procures ancillary services (frequency response and reserves) from balancing service providers, distinct from ALPEX’s day-ahead and intraday markets.
Transmission Capacity in the Albania Power Market
OST manages Albania's transmission grid and cross-border capacity, auctioned via SEE CAO through yearly, monthly and daily auctions with their own registration and financial requirements.
Existing interconnections link Albania with Kosovo (KOSTT), Montenegro and Greece, with a new 400 kV line to North Macedonia under construction. A €1 billion, 1,000 MW HVDC subsea link between Vlora and Puglia, Italy, was agreed in January 2025 between Terna and Taqa.
Albania targets net electricity exporter status by 2030, leveraging hydropower and new interconnection capacity.
Albania Power Market Exchange(s)
ALPEX (Albanian Power Exchange), established in October 2020, is Albania's day-ahead and intraday exchange, jointly owned by OST and Kosovo's KOSTT, and designated NEMO under Law 59/2026.
ALPEX runs the day-ahead and intraday markets jointly with OST, handling clearing and settlement; balancing and ancillary services remain with OST separately. Membership spans TSOs, generators, traders and distribution companies, backed by three clearing banks across Albania and Kosovo.
Admission requires a Membership Application under ALPEX Technical Decision No. 1-T, along with the required evidence of licence and authorisation. ALPEX publishes an annual tariff list each January.
Albania-Kosovo day-ahead market coupling has run since January 2024, the first in the Energy Community, with regional intraday coupling following in late 2024.
5 Market Entry Steps for Albania Power Market
- 01Establish a local Albanian LLC or branch unless a recognition exemption applies.
- 02Apply for the ERE trading licence and pay the licensing fee.
- 03Complete Form A1 market registration with the TSO-MO and deposit the financial guarantee.
- 04Sign a BRP agreement with OST or join an existing BRP.
- 05Register under REMIT with ERE and apply for ALPEX membership if exchange trading is needed.
- Post-Market Entry Reporting Obligations.
CorreggioNET, Albania Power Market Access Report
Market Access Reports: CorreggioNET offers Pre-Market Entry Reports (PMER) as part of the PMER Library, providing firms with an A-to-Z guide for market entry.
CorreggioNET Alert Service: Helps you never miss a reporting obligation. Note that Albania has several power market reporting obligations across ERE, ALPEX and OST, with a complex and quickly developing regulatory landscape and fast-growing renewables sector. The Alert Service ensures you never miss a deadline.
CorreggioNET Hotline: For your time-sensitive queries, the Regulatory Hotline Service provides direct support through an online interaction with a qualified regulatory specialist.
Consulting Solutions: For those firms which require additional assistance, Correggio Consulting is on hand to assist with all your licensing needs:
- Market entry & registration in Albania (ERE Licensing);
- OST onboarding;
- ALPEX Exchange Registration;
- Cross-border capacity (SEE CAO);
- Corporate structuring;
- Exchange onboarding;
- EFET contract negotiation;
- Yearly compliance audits.
Market Info
Stay Compliant After Market Entry
Entering a new market is only the beginning.
Once trading activity starts, the real challenge is staying compliant with ongoing regulatory updates and reporting obligations. CorreggioNET supports this post-market entry stage through its regulatory platform and monitoring services.
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