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Nearly a fifth of the energy fed into the Albanian electricity grid does not reach the final consumer, making Albania one of the countries with the highest energy losses in the Western Balkans. In the period 2023-2024, losses reached 19.4% of the energy injected into the grid, more than three times the European Union average of 6%. At the same time, the cost of electricity for Albanian businesses has significantly approached the EU level, creating a contrast between the poor efficiency of the grid and relatively competitive prices for non-household consumers.

 The data is part of the OECD's Economic Convergence Report for the Western Balkans 2026, which analyzes, among other things, the efficiency of energy infrastructure and energy costs for businesses.

In the Western Balkans, average grid energy losses were 15.2% in 2023-2024, or around 2.5 times higher than the EU average and significantly above the 9.2% level of the neighbouring EU countries used by the OECD for comparison. Albania, with 19.4%, stands significantly above the regional average. Only Kosovo has higher losses, at 21.9%, while Bosnia and Herzegovina records the lowest level in the region, at 10.4%.

The OECD measures the indicator as the portion of energy injected into transmission and distribution networks that does not reach end users. Losses reflect both technical problems, related to aging infrastructure, and non-technical losses, where old metering systems also play a role.

 Albania has nevertheless made progress compared to a decade ago. Together with Kosovo, it is among the few countries in the region where losses have decreased during the period analyzed. But the improvement has not been enough to change the country’s position: Albania and Kosovo continue to have the highest levels of losses in the Western Balkans. Meanwhile, in other economies of the region, losses have increased, while the Western Balkan average has remained practically unchanged compared to 2014-2016.

 
In Albania's profile, the OECD assesses the relative performance for energy losses at 28.4 points against the EU average of 100 in 2023-2024, up from 23 points in 2014-2016. So, there is improvement, but the gap with the European standard remains large.

Energy costs for businesses approach EU levels

Unlike network losses, the cost of electricity for non-household consumers emerges as a more positive indicator for Albania and the region.

In the Western Balkans, the average energy price for non-household consumers was 0.25 USD per kWh in 2023-2024, almost the same as the EU average of 0.26 USD/kWh and significantly lower than the 0.36 USD/kWh in the group of neighboring EU countries. The OECD estimates that relatively low energy costs constitute an advantage for the competitiveness of businesses in some parts of the region.

Albania has also moved significantly closer to the European level. The country's relative score for this indicator has increased from 48.2 in 2014-2016 to 98 in 2023-2024, on a scale where the EU average is 100. The OECD lists precisely the decline in energy costs, along with the expansion of 4G coverage, among Albania's most positive developments in the infrastructure and connectivity cluster.

Within the region, the differences in energy prices for businesses are large. Kosovo has the lowest level, at 0.18 USD/kWh, around 30% below the EU average. At the other end, North Macedonia reaches 0.38 USD/kWh, almost 50% above the European average, which the OECD attributes to its high dependence on energy imports.

The report emphasizes that at the regional level, relatively low prices are also influenced by the use of coal-fired energy and subsidies for fossil fuels, while for Albania, electricity production relies mainly on hydropower. / ekofin.al


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