Abu Dhabi Future Energy Company PJSC (Masdar) has signed a joint venture term sheet agreement to explore the development of gigawatt-scale renewables projects in Albania.
The signing ceremony with Korporata Elektroenergjitike Shqiptare (KESH) – Albania Power Corporation took place in Baku, Azerbaijan on the sidelines of COP29.
The agreement was signed by Masdar chief executive Mohamed Jameel Al Ramahi and KESH chief executive Erald Elezi.
The joint venture term sheet agreement aims to develop, construct, and operate renewable energy projects utilising a range of renewable technologies, including solar, wind and hybrid solutions, with potential integration of battery storage.
The energy produced is expected to be supplied to the Albanian market and exported to neighbouring countries.
The partnership aims to leverage KESH’s position as Albania’s leading energy producer and Masdar’s global expertise in renewable energy development to accelerate Albania’s clean energy transition.
The potential JV will benefit from Masdar’s relationships with technology providers and financial institutions, as well as its operational expertise, while capitalising on KESH’s local market knowledge and existing infrastructure.
Through this collaboration, Masdar and KESH said they are advancing Albania’s decarbonisation initiatives and contributing to the broader European energy market.
Mohamed Jameel Al Ramahi added: “The joint venture term sheet with KESH will mark a significant milestone in Masdar’s expansion into the Balkans and Southeast Europe.
“By combining our expertise in large-scale renewable projects with KESH’s deep understanding of the Albanian energy market, we are poised to make a substantial contribution to Albania’s clean energy transition.
“As Masdar targets 100GW by 2030, this joint venture with our partner KESH exemplifies the scale and ambition needed to advance the global energy transition and we look forward to further collaborations in Albania and the Eastern Balkans.”
Erald Elezi said: “This joint venture with Masdar is a pivotal advancement in Albania’s renewable energy journey, underscoring KESH’s commitment to sustainable development and energy diversification.
“Although Albania already benefits from a predominantly green energy mix, this partnership will enhance our energy resilience, improve stability, and open avenues for clean energy exports to the region.
“By working with a global leader like Masdar, we are poised to bring innovative renewable technologies to Albania, supporting our role as a clean energy leader in the Balkans and strengthening the country’s position within the broader European energy landscape.”
The joint venture term sheet between Masdar and KESH is a crucial component of the broader strategic partnership between the UAE and Albania, Masdar said.
It will play a vital role in increasing Albania’s renewable energy capacity, meeting local demand while supporting its energy export capabilities to neighbouring countries, and contributing to the region’s energy security and sustainability goals, it added.