Green for Growth Fund to Invest in Landmark Renewable Energy Project

• The investment in the 50MW solar project aims to mitigate climate change in Southeast Europe
• Renewable energy (RE) measures financed with the GGF investment are projected to reduce the country's dependency on hydropower and enhance energy security

The Green for Growth Fund (GGF) has announced a EUR 28 million loan to fund a landmark transaction with SPV Blue 1 in Albania. The privately owned project marks a significant milestone in the history of energy production in Albania, as it is the largest non-subsidized solar project in the Western Balkan Region.

The GGF's latest investment in Albania aims to tackle the challenge of underinvestment in renewable energy. This loan will provide funding for the construction and operations of a 50MW solar plant in Topoje, Fier County, Albania, covering up to 75% of the associated costs. The project was also supported by GGF's Technical Assistance Facility, which provided support in augmenting the impact generated by the investment while ensuring that the project is developed in adherence to best international practices from an environmental, social, and technical perspective.

The project, which brings together a range of institutional knowledge and resources, has significant potential to create long-term impact for Albania, given the country's abundant solar resources, which have remained largely untapped. By diversifying the energy mix and reducing reliance on hydropower, the project will increase the stability and resilience of the energy system, providing a more secure source of electricity for Albanians.

This initiative is projected to significantly contribute to Albania's efforts to reduce CO2 emissions by 11.5% by 2030 compared to 2016 levels. “Projections indicate that the project will result in a reduction of approximately 1,900 tCO2 emissions per year and generate more than 108,000 MWh of clean energy annually. The expected environmental benefits of this project align with GGF's mission to promote renewable energy and drive climate change mitigation.

GGF Chairman Christopher Knowles said: “GGF’s investment in this solar project in Albania is a testament to our commitment to accelerate the transition to renewable energy sources, a necessity for reducing dependence on fossil fuel and mitigating climate change. By investing in this project, we seek to demonstrate the viability of green energy projects and inspire other investors to follow suit.”

GGF Technical Assistance Facility Chairperson Klaus-Peter Pischke added: “We are pleased to have the opportunity to play a part in enhancing energy security in Albania. This project is a great example of how collaboration and technical knowledge sharing can create lasting impact.”

Besnik Leskaj, President of Blessed Investment sh.p.k., stated: “Blessed Investment and Matrix Konstruksion’s partnership with GGF is a key milestone in the process of energy transition and renewable energy in the Western Balkan Region. The Blue 1 project is the first utility scale project in the Balkans under construction without any kind of subsidy from the Government. We would like also to recognize the Government of Albania for creating the conditions for it to happen. We will continue our close partnership with GGF to grow this first project.”