With a total value of 67.5 million euros, the project is financed through a 50 million-euro loan from KfW on behalf of the German government and a 17.5 million euro non-repayable grant from the European Union via the Western Balkans Investment Framework (WBIF).

The 400 kV line expansion project includes the construction of two key segments: Elbasan–Fier and Elbasan–Qafë Thanë, with a combined length of approximately 130 kilometers. The project also involves the construction of a new 400/220 kV substation, “Elbasan 3,” and the rehabilitation of the existing substation in Fier.

This infrastructure will significantly strengthen electricity transmission capacity and establish a vital interconnection point with North Macedonia’s power system, laying a solid foundation for the development of a regional electricity market in the Western Balkans.

The line is part of a broader vision to integrate regional power grids, enabling more stable cross-border energy exchange and improving flexibility in managing electricity production and consumption.

Albania’s energy system relies heavily on hydropower, making it vulnerable to unfavourable weather conditions. Meanwhile, the integration of new renewable energy sources such as solar and wind requires a strengthened, stabilized, and interconnected grid with neighbouring countries. These needs elevate the project beyond national importance, positioning it as a regional priority.

Key benefits for the region include enhanced cross-border energy security, the development of modern infrastructure for clean energy, support for economic growth and job creation, and improved regional coordination during energy crises.

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