- €22.5 million for underground substation construction in Tirana, Albania
- Investment strengthens grid capacity to meet rising electricity demand
- Project part of broader modernisation of Albania’s energy infrastructure
The European Bank for Reconstruction and Development has signed a €22.5 million sovereign loan agreement with Operatori i Shpërndarjes së Energjisë Elektrike (OSHEE), Albania’s state‑owned electricity distribution and supply company, to finance the construction of a new 110/20 kV underground substation in central Tirana.
The investment will help strengthen the reliability, resilience and efficiency of the capital’s electricity distribution network, supporting the implementation of Tirana’s Green City Action Plan (GCAP), developed as part of the city’s participation in the EBRD’s flagship Green Cities programme.
Tirana’s GCAP was adopted in 2018 and includes a commitment to expand modern, reliable and sustainable electricity distribution infrastructure across the capital.
The loan replaces €14.5 million in financing allocated as part of a previous EBRD facility and provides an additional €8 million. The funds will be used to improve network stability in a rapidly growing urban area and help reduce technical losses, contributing to Albania’s broader energy‑sector transition.
Ekaterina Solovova, Head of the EBRD’s Resident Office in Tirana, said: “The investment will reinforce Tirana’s power distribution system at a time of increasing demand and expanding urban development. By supporting modern, resilient and efficient electricity infrastructure, we are helping Albania strengthen its energy security while advancing green urban development.”
The EBRD’s Green Cities programme helps cities address their most pressing climate and environmental challenges through targeted investments and policy support. Each participating city develops and implements a Green City Action Plan that prioritises sustainable infrastructure and supports a better quality of life for residents. Tirana was one of the first three cities to join the initiative in 2016.
The EBRD has been investing in Albania since 1991, with more than €2.4 billion committed through 180 projects in the energy, infrastructure, financial and private sectors.