Germany invests €114 million in Albania’s energy sector and student housing
Three KfW-backed agreements total €114 million — €90 million in loans and a €24 million grant for student housing renovation and energy projects.
Germany and Albania signed three financing agreements on August 3, 2026, covering energy and public infrastructure projects worth a total of €114 million.
Key figures and funding structure
Of the package, €90 million are loans and the remaining €24 million are a grant provided by the German government through the development bank KfW. The financing is presented as part of ongoing cooperation between the two countries facilitated by KfW.
Part of the funds will be used to digitalize and automate Albania's high-voltage transmission grid. The project aims to improve management of substations and the overall operation of the national system, increasing efficiency and operational responsiveness.
Another agreement covers the rehabilitation of the Vau i Dejës hydro power plant, one of Albania's larger public electricity-generation assets. The work is intended to extend the facility's operational life and secure generation capacity.
The €24 million grant is earmarked for renovation of student residences in the Student City complex in Tirana. Planned interventions include upgrades to living conditions and measures to reduce energy consumption in the buildings.
The contracts were signed in the presence of Albania's Minister of Infrastructure and Energy, Enea Karakaci, and German Ambassador Karl Bergner. Officials described the package as a continuation of bilateral development cooperation mediated through KfW.
Photo: press material from the event
