Albania, a country in the Balkan peninsula, has selected a group led by India Power Corporation Ltd. to build its first solar power project, reported Reuters.

The project capacity is 100 MW and expected to cost €70 million ($79.34 million).

Apart from India Power Corporation Ltd., Mining Resources FZE based in the United Arab Emirates and the Hong Kong-based Midami Ltd. have been selected for the project. They were chosen as the best combination of technical and financial credibility, price and additional capacity, according to the country’s Ministry of Energy.

More than 90 percent of Albania’s power is generated from rivers and a newly-built power plant, but it often faces rampant cooling problem. Keeping this in view, Albania now wants to install 120 MW of solar and 70 MW of wind power capacity by 2020 to meet its energy requirements.

The solar project is expected to be complete in 18 months. Out of 100 MW, 50 MW will be sold to the local distributor at €59.9 (~$67.39) per MW for a period of 15 years. Remaining 50 MW will be sold at market prices.

This auction has discovered one of the lowest energy prices in the region. The price “is lower than the €63 (~$70.87) /MW in Greece and Turkey and also below the average import price,” said Energy Ministry of Albania.

Albania’s interest in the Indian company rests on its record of having more than 1,500 MW capacity of thermal, wind, and solar power. After the negotiations of the contract, this will be the first major investment by an Asian company in Albania except China.

Earlier, Mercom reported that India Power Green Utility Private Limited (IPGUPL), a wholly owned subsidiary of India Power Corporation Limited, announced that it would co-develop 20 MW of solar in Uttarakhand in partnership with Punj Lloyd.