Solar Energy an Instrument for Reducing High Electricity Prices in Industry Sector in Albania

  • 1 Department of Energy, Faculty of Mechanical Engineering. Polytechnic University of Tirana, Albania
  • 2 Department of Manufacturing and Civil Engineering, Norwegian University of Science and Technology in Gjøvik, NO-2802 Gjøvik, Norway
  • 3 Renewable Energy Directorate, National Agency of Natural Resources, Albania


The research focus addresses to installation of PV modules in industry sector in Albania. Due to energy crises, the prices are going higher and with the new regulations that are defined by Albanian government, businesses that are connected to 20kV, 10kV, 6kV transmission lines must secure the energy supply by their selves in open market, since a part of price was covered by government, now companies are facing higher prices. The new price is expected to increase more than 70%, up to 0.16 €/kWh from 0.092 €/kWh. Also, companies that will be in the open market will face price volatilities, hence with the installation of PV modules, reduction of electricity price is possible, since the LCOE (levelized cost of electricity) for the PV in Albania, including 20% VAT tax, is calculated around 0.035 €/kWh. To calculate the effect in electricity price a simulation using RETScreen Expert is performed. The simulations are made for a company connected to a 20kV electricity transmission line where an on-grid PV system 217.28 kW power installed is integrated on the roof. The PV modules covers 52.4% of the company electricity demand, by generating 286055 kWh electricity yearly from which 68% of electricity generated from PV is consumed by the company and 32% is exported to grid because company works 8 h/day and there is not an electricity storage system installed. With the price increment from 0.092 €/kWh to 0.16 €/kWh, the total earnings from PV installed system will be increased by an average 65.3% and if the electricity price in the open market is doubled the total earnings will be increased by an average 85.3%.



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