Albania’s applicable default emissions value for electricity is zero, leaving the indicative Carbon Border Adjustment Mechanism (CBAM) cost calculated with that default at zero, according to a regional monitoring report dated 4 November by the Energy Community Secretariat. The finding contrasts with monitored Western Balkan–EU electricity borders where positive default emissions factors produce positive indicative costs.
The report assesses electricity exports from Albania and other Western Balkan markets to the European Union. It identifies Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia as markets where exporters can face a materially different calculation from Albanian suppliers.
On every monitored border where a positive default emissions factor applies, the estimated CBAM cost per MWh exceeded the Western Balkan market’s average wholesale price advantage over its EU neighbour. The comparison distinguishes wholesale price competitiveness from the commercial viability of electricity exports: a price advantage and the carbon-border cost are separate inputs to the export calculation.
For Albanian electricity suppliers, the zero default removes that particular carbon-cost component from the indicative export calculation. It does not remove normal trading, transmission, scheduling, balancing or other contractual requirements.
The findings are particularly relevant to renewable developers financing projects on the assumption that their electricity will be sold into EU markets. The report says project analysis must consider physical generation technology, electricity-market position, eligibility for actual-emissions reporting and the applicable regulatory default.
The monitoring results do not establish that Albania gained additional EU electricity market share as a direct result of its zero default factor. Comparable delivery volumes, generation conditions and transmission constraints would be needed to establish whether the default contributed to any change in market share.
Differences in default emissions factors are an input for regional power-trading models and investment analysis. Banks and industrial electricity buyers need to calculate carbon-border exposure according to applicable origin, delivery arrangement and emissions methodology, rather than treating all Western Balkan electricity as having the same CBAM cost.
