EBRD finances underground substation in Tirana
$26 M (€22.5 M) loan supports underground substation and stronger electricity network in Albania’s growing capital
Image for illustrative purposes / Credit: trabantos, Shutterstock.com
Albania, Tirana: The European Bank for Reconstruction and Development (EBRD) has approved a $26 M (€22.5 M) sovereign loan to Operatori i Shpërndarjes së Energjisë Elektrike (OSHEE), Albania’s state-owned electricity distribution company, to support the construction of a new 110 / 20 kV underground substation in central Tirana.
This investment aims to improve the reliability, efficiency and resilience of the city’s electricity network, helping meet rising demand driven by rapid urban growth. It also supports the goals of Tirana’s Green City Action Plan (GCAP), developed under the EBRD’s Green Cities programme.
Adopted in 2018, the GCAP includes plans to expand modern and sustainable power infrastructure across the capital. The new loan replaces $16.7 M (€14.5 M) from a previous EBRD facility and adds a further $9.2 M (€8 M) in funding. The project is expected to strengthen grid stability and reduce technical losses, contributing to Albania’s wider energy transition.
Ekaterina Solovova, Head of the EBRD’s Resident Office in Tirana, highlighted the importance of the project, noting that it will reinforce the city’s power system at a time of increasing demand and development. She added that modern infrastructure is key to improving energy security while supporting greener urban growth.
The EBRD’s Green Cities programme helps cities tackle environmental challenges through targeted investment and policy support. Tirana joined the initiative in 2016 as one of its first participants.
Since 1991, the EBRD has invested more than $2.8 B (€2.4 B) in Albania across 180 projects in energy, infrastructure and other sectors.
Source: EBRD
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