Albania is diversifying energy sources including oil, gas, coal and other flammable materials, thermocentrals, other natural resourses, regenerative energy as well. The country is very rich in hydro sources wuith only about 30% of it having been explored. Albania is also introducing energy conservation and alternatives to the existing hydro system

Albania’s most important energy resource is hydroelectricity. The total potential hydropower is about 3.000 MW, with an annual generation potential of 10 TWh. Current installed capacity is 1450 MW, and the average annual generation from 1992 to 2001 was 4,344 GWh. Hydropower generation normally provides more than 95% of Albania’s total electricity production.

The two biggest companies in the energy sector are : the Albanian Energy Corporation (KESH) and the Albanian Oil Corporation (KSHN).

In 2004 it was reported that the prime ministers of Albania, Bulgaria and Macedonia had signed a three-party Memorandum of Understanding of their own in Sofia to support another Trans-Balkan pipeline between Burgas and Vlore. In the summer of 2004, a feasibility study for yet another Trans-Balkan project, the Constanza - Omisalj pipeline, was revised. These three bypasses have already become classics of the genre.

According to Oilonline the idea to lay a pipeline from Bourgas in Bulgaria to Vlore on Albania's coast dates back to 1996. Initially, the project won backing from ChevronTexaco and ExxonMobil, which produce oil in Kazakhstan and use the Caspian Pipeline Consortium (CPC) pipeline to pump their oil to markets. One of the route's advantages is that Vlore is capable of loading tankers with deadweight of up to 300,000 tonnes. America's Albanian Macedonian Bulgarian Oil Corporation (AMBO) is promoting the project, which would cost an estimated $1.2 billion. The pipeline would be able to carry 35 million tonnes of oil per year and would be 898 kilometers long. Work is due to start this year.