LEGAL ALERT

Albania Enacts a New Electricity Sector Law

WHAT CHANGED

Law No. 59/2026 replaces Law No. 43/2015 with a comprehensive framework for electricity generation, storage, transmission, distribution, supply and trading. It strengthens ERE's regulatory role, introduces storage and risk-readiness rules, updates licensing and market access, and expands consumer and energy-community provisions.

Existing market rights and obligations continue until the new implementing acts take effect. Transmission users must comply with the new framework by 31 December 2027; regulated universal-service prices may continue for households, micro and small enterprises through that date. The existing transmission-operator licence remains valid until certification and a new licence are completed.

WHO IS AFFECTED

Generators, suppliers, traders and large consumers in the Albanian electricity market. Also relevant to foreign investors in renewable generation, to industrial users negotiating supply, and to any business assessing power costs as part of an investment decision.

WHAT TO DO

• Existing licences and authorisations should be reviewed against the new framework, including whether they continue in force and on what terms.
• Investors with projects in development should establish which regime applies to a project already under way.
• Watch for the implementing subordinate legislation and ERE regulation, which will carry the operational detail.
• Note the interaction with the reduced corporate income tax and incentive regimes where a project qualifies.