As Albania faces a severe energy crisis and KESH spends hundreds of millions of euros to secure electricity imports, Turkish company AYEN AS Energji has reportedly failed since 2014 to deliver the electricity it owes the Albanian state under its concession contract.
Skyweb.al has learned that the outstanding amount is 59,047 MWh of electricity, or more than 59 million kilowatt-hours, which the company is required to provide to the Albanian state as a concession fee for using the country’s water resources. The newsroom has also learned that this obligation increased by around 11 million kWh in 2025 alone.
Të lidhura
None found
Under the concession contract, AYEN AS Energji must deliver 2.1% of the annual electricity output from the hydropower plants it operates in Albania to the state free of charge. The company has three hydropower plants on the Fan i Madh and Fan i Vogël rivers, with an installed capacity of 109 MW.
However, the newsroom has learned that this obligation has not been met since 2014.
KESH spends millions of euros to supply Albania, while AYEN sells its electricity on the market
The situation is even more concerning given that KESH has contracted 901,626 MWh of electricity for the July–November 2026 period, at a cost of €172.6 million.
Meanwhile, import prices have risen sharply, from around €125/MWh during the summer to more than €364/MWh in contracts signed in early November.
At an indicative price of €125/MWh, the accumulated 59,047 MWh would be worth around €7.4 million. At KESH’s latest electricity import prices, which reached as high as €364.90/MWh in early November, this volume of electricity would be worth around €21.5 million, almost three times its value at summer prices.
KESH could receive this electricity free of charge, but AYEN is selling it at peak prices for the company’s own benefit.
The concession contract also allows the fee to be settled in cash, under the conditions specified for such a payment, but this has not happened either.
The situation is even more serious because AYEN has not only failed to deliver 59 million kWh of electricity to the state, but has also made no provisions in its financial statements for this obligation, which has accumulated over more than a decade.
This means the company has not recognized an estimated liability in its financial statements that would weigh on its financial results if settled.
The situation is particularly glaring given the explanation the company itself provides for this decision in its 2025 financial statements, reviewed by Skyweb.al.
In its financial statements, AYEN AS Energji acknowledges that the 2.1% share of electricity has not been delivered, justifying the failure to settle the obligation by stating that “the delivery methodologies and conditions have not yet been determined.”
As for the failure to record a financial provision, the company’s management argues that fulfilling this obligation would not impose a significant additional cost burden, as the hydropower plants are already operational.
In other words, the company acknowledges on the one hand that it owes the Albanian state 59,000 MWh of electricity, while on the other it justifies the absence of a provision by saying that producing and delivering this electricity would not cost it much.
AYEN even states in its financial statements that settling the obligation requires negotiations or an action plan with the contracting authority!!
The Turks earn billions from exploiting water resources
Meanwhile, the Turkish company’s operations in Albania have proved highly profitable.
According to its financial statements, AYEN generated around 1.04 billion lek in net profit in 2025, compared with around 1.21 billion lek in 2024.
Electricity production reached 342,103 MWh in 2024, while 301,742 MWh was recorded in 2025.
Revenue from the company’s operations reached around 3.45 billion lek in 2024 and 3.11 billion lek in 2025.
Thus, while the company continues to generate billions in profits from exploiting Albania’s water resources, its concession obligation to supply electricity to the state has remained unsettled for more than a decade, with no provision recorded for it.
Skyweb.al approached AYEN AS Energji for comment on the findings concerning the undelivered electricity and the lack of provisions, but had received no response by the time this article was published.
At a time when Albania is paying record prices for imported electricity, the 59,000 MWh of electricity left undelivered by a private concessionaire represents a substantial obligation that the Albanian state should seek to have settled.
Moreover, the fact that the company has continued to generate substantial profits while failing to deliver the required electricity or recognize a financial provision for it raises serious questions about how compliance with the concession contract has been monitored throughout these years. /skyweb.al
