Albania has a very favourable geographical position, among the shortest routes that pass from the Western Mediterranean to the Balkans and Asia Minor, as a result it has a significant potential for renewable energy sources such as: sun, wind, water, biomass and geothermal resources.

The use of these resources constitutes a long-term strategy for the implementation of three objectives such as: support for general economic development; increasing security of energy supply; and environmental protection.

In 2020, according to EUROSTAT, Albania had the highest share of renewable sources in the gross final energy consumption from the Western Balkans (45.0%), an increase of 13.1 pp compared to 2010.

The main instruments of Albanian energy policies include the harmonization of the legal framework of the energy sector with European directives, consumer protection, promotion of energy efficiency and increased use of renewable resources. Energy planning is based on lower cost and encouraging private and public-private investments.