Energy security is a key concern inAlbania, which relies on hydropower for about 90 percent ofits electricity production. While renewable energy resourceslike hydropower play a fundamental role in moving the worldtowards a low-carbon economy, they are also vulnerable toclimatic conditions. Climate variability already affectsAlbania's energy production to a considerable extent,and climate change is bringing further challenges. Thisreport summarizes work conducted in partnership withstakeholders in Albania's energy sector and otherclosely related sectors. It aimed to build greaterunderstanding of the climate risks faced by the energysector and of priority actions that could be taken to reducevulnerabilities. The remainder of this report is set out asfollows: section two describes the context for thisassessment, covering the Albanian energy sector, observedand projected climatic conditions and Albania'sadaptive capacity. Section three outlines the climaticvulnerabilities, risks, and opportunities facingAlbania's energy sector. Section four describes the keyadaptation options identified for managing climate risks tothe energy sector. Section five provides the cost-benefitanalysis of physical adaptation options. Section six setsout next steps for improving the climate resilience ofAlbania's energy sector. Finally, section sevenincludes references and lists of annexes and appendices.