The Impact of Public Private Partnerships Instrument in Energy Sector: Case of Albania

Abstract

The energy sector plays a crucial role in the economic development and social welfare of countries, and public-private partnerships (PPPs) have become increasingly popular as a tool to promote investment, to improve service delivery and to foster sustainable development. This paper focuses on the impact of PPPs in the energy sector in Albania, because mostly of PPPs contract in Albania are in this sector (185 contracts). The study  qualitative method approach to analyze the impact of PPPs on key indicators such as energy production and energy net balance of Albania. The findings indicate that hydropower plant with PPPs have contributed in increasing energy production during the years, however there are some challenges associated with this PPPs projects including high costs, lack of transparency, and potential social and environmental impacts. It concludes by emphasizing the importance of careful planning, monitoring and  project evaluation to ensure the long-term sustainability of PPPs and their contribution to achieving the national energy goals. Overall, this paper contributes to the growing literature on the impact of PPPs in the energy sector in Albania and provides important insights for policymakers in designing and implementing effective PPPs that support sustainable energy development.