Why did Albania face energy shortages after the communist period?

Following the collapse of the communist regime in Albania, the country transitioned from being an energy exporter to experiencing chronic electrical shortages. While the communist government had effectively exploited the nation's hydroelectric potential by constructing large power plants on the Drin River, the post-communist period saw a decline in these exports and inadequate service across large areas of the country.1

The energy sector's decline was part of a broader, uneven economic transformation. The transition was marked by significant instability, including the 1997 collapse of pyramid finance schemes that devastated the national economy and led to widespread anarchy. This period of chaos, further compounded by the Kosovo conflict at the end of the 1990s, resulted in political polarization that hindered economic development and infrastructure maintenance for several years. Consequently, the country struggled to maintain the energy production levels achieved during the previous era.21