Abu Dhabi Future Energy Company (Masdar) and Korporata Elektroenergjitike Shqiptare (KESH) – Albania Power Corporation - have signed a joint venture term sheet agreement to explore the development of gigawatt-scale renewable projects in Albania.

The signing ceremony took place in Baku, Azerbaijan, on the sidelines of COP29, witnessed by the Prime Minister of Albania, Edi Rama, Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, COP28 President and Chairman of Masdar, and Belinda Balluku, Deputy Prime Minister and Minister of Infrastructure and Energy for Albania.

The agreement was signed by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Erald Elezi, Chief Executive Officer of KESH.

The joint venture term sheet agreement aims to develop, construct, and operate renewable energy projects utilising a range of renewable technologies, including solar PV, wind, and hybrid solutions, with potential integration of battery storage. The energy produced is expected to be supplied to the Albanian market and exported to neighbouring countries.

Dr. Al Jaber said, "This agreement is a testament to the UAE's unwavering commitment to pioneering clean energy solutions on a global scale. By leveraging the UAE's world-class expertise in renewable energy and Albania's abundant natural resources, our purpose-built, future-ready infrastructure will deliver more energy with fewer emissions to more people than ever before.

Agreements like these will help realise the ambitious goals of the historic UAE Consensus, aimed at tripling renewable energy capacity by 2030 and driving low-carbon socio-economic progress."

Balluku, in turn, commented, "The partnership between KESH and Masdar is a significant moment not only for Albania's journey towards a sustainable and secure energy sector, but also embodies the spirit of the strategic partnership between Albania and the UAE and underscores the importance of international cooperation in achieving a green, sustainable future.

"By combining Albania's rich renewable energy potential with Masdar's global expertise, we are not only advancing our domestic energy goals but also positioning Albania as a key player in the European energy market, while enhancing our energy security, creating new economic opportunities, and contributing to our efforts to meet global climate goals."

The partnership aims to leverage KESH's position as Albania's leading energy producer and Masdar's global expertise in renewable energy development to accelerate Albania's clean energy transition.

A landmark in the development of renewable energy capacity in Albania, the potential joint venture will benefit from Masdar's relationships with technology providers and financial institutions, as well as its operational expertise, while capitalising on KESH's local market knowledge and existing infrastructure.

Through this collaboration, Masdar and KESH are advancing Albania's decarbonisation initiatives and contributing to the broader European energy market.

Al Ramahi said, "The joint venture term sheet with KESH will mark a significant milestone in Masdar's expansion into the Balkans and Southeast Europe. By combining our expertise in large-scale renewable projects with KESH's deep understanding of the Albanian energy market, we are poised to make a substantial contribution to Albania's clean energy transition.

As Masdar targets 100GW by 2030, this joint venture with our partner KESH exemplifies the scale and ambition needed to advance the global energy transition and we look forward to further collaborations in Albania and the Eastern Balkans."

For his part, Elezi stated, "This joint venture with Masdar is a pivotal advancement in Albania's renewable energy journey, underscoring KESH's commitment to sustainable development and energy diversification. Although Albania already benefits from a predominantly green energy mix, this partnership will enhance our energy resilience, improve stability, and open avenues for clean energy exports to the region.

By working with a global leader like Masdar, we are poised to bring innovative renewable technologies to Albania, supporting our role as a clean energy leader in the Balkans and strengthening the country's position within the broader European energy landscape."

The joint venture term sheet between Masdar and KESH is a crucial component of the broader strategic partnership between the UAE and Albania. It will play a vital role in increasing Albania's renewable energy capacity, meeting local demand while supporting its energy export capabilities to neighbouring countries, and contributing to the region's energy security and sustainability goals.