Recently, the Albanian government has compiled national energy strategy with a special focus on promoting the use of renewable energy sources (RES) which identifies a target of 42% of the final energy consumption from RES by 2030. In this paper, analyses are conducted in order to investigate to which extent and way the absorption capacity of the power system from RES electricity can be improved. As an effective approach of implementing wind power, fostering the accommodation of renewable energy sources, especially on large-scale, a detailed techno-economic analysis of the 164 MW installed grid-connected wind farm, considered as a potential source, Korça district is analyzed. Conjoining two different types energy tools, RETScreen, a tool used on plant scale level and EnergyPLAN model applied for large energy system on national level including all energy sectors an optimization process is notably focused to attain 42% of the final energy consumption from RES by 2030, which was highly preformed in EnergyPLAN model. The results execute in EnergyPLAN identifies that the wind power capacity should be at least1850 MW and an installation cost not more than 1.1m€/ MW considering a bench mark price of electricity €76/MWh. The results of the study highlight the importance of high levels of RES integration which not only reduces greenhouse gases but will technically favor the creation of a flexible and sustainable energy system over time. Finally, the need for a sustainable and clear national energy model is inevitable, reshaping key points factors that hamper the integration on large-scale of wind power in Albania.

Albania’s electricity sector lacks energy storage systems (ESS); hence, large quantities of electricity generated during the off-peak time, and excess electricity cannot be stored. On the other hand, the transmission capacity upgrades do not keep pace with the growth in peak electric demand; thus, congestion-related issues occur. Congestion of transmission lines has led to considerable uncertainties. Drin River cascade is located north of Albania. It possesses enormous potential energy that is not used due to a lack of ESS. Security of supply, rational use of renewable energy sources (RES), diversification of the electricity sector, increased competitiveness, sheltering more future RES capacities that can benefit from deferring investment in the existing transmission system, and environmental protection are some of these the main benefits of integrating ESS. Regarding the energy transition, the Albanian government’s endeavor aims to maintain and further develop a flexible, sustainable, secure, efficiently supplied, and affordable energy supply system. The results of the simulation executed by using ES-select software to produce multiple benefits from a single device from the chosen application’s list (App1–App6) showed that the most adequate ESS for storing excess electricity in the Drin River cascade are: compressed air energy storage (CAES-c), pumped hydro energy storage (PHES), and sodium-sulfur batteries (NaS). Integrating such systems in the central or bulk generation makes the circumvented cost in 10 years profitable; therefore, moving towards 2030, it would be extremely difficult to tackle the energy sector’s challenges alone, without integrating the ESS.

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This article presents a highly important and detailed techno-economic analysis of a grid-connected wind farm, considered as one of the most potential location in the south of Albania, part of Tepelena region, Mamaj village. The procedure of selection of the wind turbine type is performed by evaluating the maximum Capacity Factor (CF) among 15 different types of wind turbines applied using WAsP energy tool enabling the optimization of energy system while economic analysis uses a Monte Carlo simulation well designed on RETScreen Expert tool. This modeling framework can address some beneficial values and solution which can be used from policy makers in the country to better assess the penetration of renewable energy sources into a large scale by finding the exact selling price of electricity and correcting the latest decrease of bonus factor from 1.3 in 2019 to 1.2 in 2020, which should be adjusted by a factor of 1.4. To check the economic feasibility of this project, the parameter of net present value (NPV), internal rate of return (IRR) and simple payback period (SPB) are adjusted accordingly and the financial feasible investment zone is determined.