Albania: Albania To Introduce The Albanian Power Exchange: An Important Step For Power Market Liberalization

Last Updated: 12 December 2016
Article by Flavia Xhafo


The rules governing the power sector in Albania have undergone substantial changes in the last years. This is mainly the result of Albania's obligations undertaken in the context of the Stabilization and Association Agreement with the European Union ("EU"), and the Energy Community Treaty ("EnC Treaty").

Pursuant to such obligations, on 30 April 2015 the Albanian Parliament adopted the new Power Sector Law no. 43/2015, which transposed the Third Energy Package of the EU acquis (including full transposition of Directive 2009/72/EC, 13 July 2009 concerning common rules for the internal market in electricity). The new Law set forth objectives and rules concerning (a) the organization and functioning of a fully open power (electricity) market; (b) the improvement of participation in such a market; (c) customer protection, security of supply and establishment of competitive market structures; as well as (d) the integration of the Albanian market in the regional and European electricity markets.

On the basis of the general framework established by the new Power Sector Law, the Council of Ministers recently approved the new Albanian Power Market Model ("AMM") (Council of Ministers' Decision no. 519, dated 13 July 2016).

Concrete steps toward the establishment of the Albanian Power Exchange

In view of the new rules to establish a liberalized and competitive electricity market, one of the significant novelties brought by the new Power Sector Law was the introduction of a power market that is composed not only of direct trading between market participants on the basis of bilateral contracts, but also of an organized platform for trading power on a day-ahead and/or intra-day basis (i.e. through a power exchange). In that context, the Law entitled electricity traders and suppliers registered in the member states of the EnC Treaty to participate in the Albanian electricity market based on the principle of reciprocity.

Most importantly, the recently approved AMM introduced concrete steps towards the creation and functioning of the Albanian Power Exchange ("Albanian PX"). This is an important milestone towards the liberalization and promotion of a fully competitive power market in line with Albania's obligations under the Third Energy Package. is is also expected to improve the reputation of Albania as a trading country, as well as to guarantee the quality and sustainability of its power services and long-term financial stability. To that effect, the AMM aims for the alignment of the process of establishment of the Albanian PX with the best EU practices and for an active and supportive role of the EnC Secretariat in that regard. Along the same line, the AMM paves the way for the Albanian PX to become signatory of the Memorandum of Understanding of Western Balkan 6 on regional electricity market development and establishing a framework for other future collaboration – a process that ultimately supports the integration of the Albanian market into the day-ahead regional and European markets.

According to the AMM, the Albanian PX shall be established as an Albanian legal entity responsible for the functioning of the organized electricity market. Initially, it shall collect bids from market participants and carry out the compatibility and liquidation of wholesale power products on an hourly basis. More generally, the Albanian PX shall accept bids for the trading of energy from balancing responsible parties (i.e. market players that have an implicit responsibility to forecast their production and consumption), process interconnection capacities from the Transmission System Operator ("TSO"), carry out auctions and commercial operations using the European market coupling algorithms, publish the distributed amounts and the respective prices, guarantee the accessibility of the commercial platform from all interested parties, etc. It bears emphasis that all market participants registered in the Albanian PX shall be entitled to carry out their trading activities without any limitations of public service obligations.

The direct institutional responsibility for taking the necessary measures and preparing the relevant acts for the establishment of the Albanian PX shall rest with the Minister of Energy and Industry ("the Minister") and the TSO. The Minister shall lead the process of establishing and structuring the ownership of the Albanian PX on the basis of the following action plan already incorporated in the AMM:

  • within 1 September 2016, the Minister establishes within the TSO a unit, which shall prospectively constitute the core unit of the Albanian PX. The core unit shall prepare the necessary legal basis and documentation for the establishment of the PX and its licensing from the ERE, as well as the cooperation agreements with partner companies in the regional and European markets;
  • within 31 December 2016, the core unit shall propose to the Minister the aforementioned legal basis and documentation, including the organizational chart of the company to be established as a PX;
  • within 31 March 2017, the Minister shall decide for the establishment of the Albanian PX. The TSO shall look for possible shareholders and operators of the PX among service providers with international experience. The Albanian PX shall be however open to other shareholders, including neighboring TSOs, should the initial shareholders so request.
  • as of 30 June 2017, the Albanian PX shall be ready to commence operations in accordance with the AMM, and
  • within 31 December 2017, the Minister shall decide for the commencement of operations of the Albanian PX, upon compliance by the latter with all legal, technical and regulatory issues required for the implementation of the AMM.


The recently approved Albanian Market Model and the concrete steps for launching the Albanian Power Exchange, show both a serious and challenging commitment of the Albanian government. While this commitment should facilitate incoming foreign direct investment in the energy sector, it remains to be seen whether there will be a smooth and timely implementation of the action plan and the launching of the Albanian PX within 31 December 2017.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.