The loan was awarded to Hydro Power Plant of Korca to build two plants – Verbe-Selce 1 and 2 – due to become operational next year. With a combined capacity of 5MW, the two plants will generate up to 23GWh of electricity per year and help offset over 17,400 tonnes of CO2 annually.

“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.

Hydro Power Plant of Korca is an Albanian company owned by two Italian companies, Fidia Ambiente and EdilEurope srl which is part of ADRE Group, and by the local company Xhemi sh.p.k.

“We are enthusiastic about the EBRD’s involvement in hydropower plants in Albania. The financial support of the EBRD represents an important endorsement and recognition of the quality of our investment and our commitment in the region. This project will set an excellent example of financially viable investments in renewables, we look forward to more projects in the Balkan region,” said Claudio Barbano, owner of EdilEurope.

“Fidia Finanziaria, through its subsidiary Fidia Ambiente, has been operating for many years in the renewable energy sector. This new initiative in Albania is part of a strategic plan that will involve further investments in renewable energy in the Balkan region,” added Fabrizio Arengi Bentivoglio, Chairman and CEO of Fidia Finanziaria.

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.