Albania exported 1.2 TWh of energy in the first quarter of 2026/ How the carbon tax helped

2026-04-30 07:37:00, Ekonomi CNA

Albania exported 1.2 TWh of energy in the first quarter of 2026/ How the carbon

The first three months of the year marked a significant increase in energy, with production from hydropower plants being 70 percent higher in January-March 2026 compared to the same period a year earlier.

Data made public in the Energy Community report "Carbon Border Regulation Mechanism" show that Albania was advantaged compared to other countries in the region in its exports coming from renewable sources.

Specifically, according to the first quarterly report on the implementation of the Carbon Border Adjustment Mechanism (CBAM), Albania's hydropower production increased significantly, turning the country into a much more aggressive net exporter of energy to the region and the European Union market.

"Hydro production in Albania increased by 1.34 TWh (+70%) in the first quarter of 2026 compared to the same period in 2025, from 1.93 TWh to 3.27 TWh," the report states, while the increase was mainly concentrated in January and February, with +72% and +84% respectively, reflecting extremely favorable hydrological conditions.

This surplus, according to the report, immediately translated into higher exports. Albania increased planned exports to Greece by 4,100 MWh per day, to Kosovo by 3,700 MWh per day, and to Montenegro by 2,000 MWh per day.

The same document estimates that “these changes in trade flows represent a net movement of approximately 1.2 TWh of Albanian energy that left the country in the first quarter of 2026”, a volume that matches almost completely the additional increase in hydro production.

The economic impact is made even greater by the way the CBAM treats Albanian energy. Unlike Serbia, Bosnia or Montenegro, Albania has a zero emission factor, meaning that its exports to the European Union are not burdened with additional carbon costs.

“Electricity imported into the European Union from Albania was not financially affected by the CBAM,” the report states, adding that this “created a commercial incentive for importing Albanian electricity into EU markets.”

A situation like this turns Albania into a preferential energy corridor towards the European market, especially towards Greece and further towards Italy. The report notes that exports from Albania to Greece were emphasized, while Albanian energy, together with high Greek production, was redirected further towards Bulgaria and Italy.

The Energy Community warns that hydro-dominated systems like Albania “appear to be in a more structurally competitive position,” suggesting that CBAM is creating long-term winners and losers in the region. In contrast, countries with higher coal production face heavy tariffs.

Montenegro, for example, pays around 73.8 euros for every MWh exported to the European Union, while Albania pays zero. “The contrast between Albania and Montenegro shows how country-level emissions factors shape cross-border trade,” the report says, placing Albania on the winning side of Europe’s new energy transformation. /Monitor