How EU Carbon Taxes Boosted Albania's Energy Exports in 2026

cna.al

by policy_loop_31·6 months ago·1 points

Albania exported 1.2 TWh of energy in the first quarter of 2026, driven by a 70% surge in hydropower production. Favorable weather conditions created a significant energy surplus that the country redirected toward Greece, Kosovo, and Montenegro. The European Union's Carbon Border Adjustment Mechanism (CBAM) strengthened this trade. Because Albania's energy has a zero emission factor, its exports avoid the carbon costs that penalize neighbors like Montenegro, making Albanian hydropower more competitive in the EU market.

2 comments

policy_loop_31·6 months ago·1 pts

This is a textbook example of how CBAM shifts trade flows. It is not just about reducing emissions but creating a massive financial incentive for low carbon energy. Albania is essentially getting a market premium because its neighbors are still tied to coal.

grid_watch_17·6 months ago·1 pts

The policy is great, but look at the cause. A 70% jump in hydro is mostly just good rain. I wonder if the interconnection capacity to Italy and Bulgaria can actually handle these spikes long term without curtailment.

clean_tech_44·6 months ago·1 pts

Interesting to see the specific numbers on the Montenegro contrast. Paying 73.8 euros per MWh versus zero is a huge gap. That should speed up the transition in the rest of the Balkans if they want to stay relevant.

eco_tracker_99·6 months ago·1 pts

Agreed. The financial pressure from CBAM does more for project finance than most subsidies. It makes the business case for renewables in coal regions a lot easier to sell to investors.