Transforming Albania’s Energy Sector: Advancing Economic Growth, Sustainability and Regional Integration

Abstract

Albania, as part of the European countries, is involved in a significant reform in its energy system. The effects of such endeavors are expected to impact not only the national level but also the wider region, including Southeast Europe. Several key areas will benefit from this transformation. A series of concrete measures have been taken by the government to transform the energy sector advancing economic growth and to facilitate the integration in the region, including documentation to support the internal energy market, guaranteeing energy security, increasing energy efficiency, and reducing greenhouse emissions. These reforms will contribute to Albania’s economic development, energy supply stability, and environmental protection. They ensure the generation of income and the increase of jobs in various sectors, directly affecting the country's growth and macroeconomic stability. Socially, job growth contributes to enhanced personal and family well-being, increases tax revenues, and boosts investments in education, health, and other public services, eventually enhancing overall well-being and reducing poverty. This paper examines the factors driving the transformation of Albania's energy system, including national efforts in network security and information systems, which align with EU directives and the completion of SDG7 under the European Agenda. It analyzes the interconnectedness of national and regional energy systems, highlighting the importance of digital transformation, data security, and collaboration among stakeholders. The study’s results indicate that Albania’s energy strategies are already having a positive impact on the region and the wider Southeast Europe region. The final findings emphasize the need for strategic frameworks that prioritize sustainable development and public safety as key pillars of energy sector reform.