The Role of Solar Energy in Albania’s Economic Transformation

Abstract

This article examines the emerging role of solar energy in Albania and its economic impact. While Albania has historically relied on hydro-power for electricity production, the country is shifting towards a more diversified renewable energy portfolio, particularly in solar power. The paper assesses how solar energy can contribute to the country’s energy security, reduce dependency on energy imports, and support economic growth through job creation and foreign direct investment (FDI). Key challenges include regulatory frameworks, financing bar-riers, and infrastructure modernization. Additionally, this paper provi-des policy recommendations to incentivize investment in solar projects and integrate solar energy into Albania’s regional energy strategy. The findings indicate that expanding solar energy has the potential to si-gnificantly enhance Albania’s economic resilience and sustainability.