The European Bank for Reconstruction and Development and German development bank KfW have signed an €87 million ($102.5 million) financing package for a 134 MW solar project in North Macedonia, the largest developing country.
Elektrani na Severna Makedonija (ESM), the state-owned electricity generation company North Macedoniahas secured an €87 million ($102.5 million) financing package for a 134 MW solar project.
The Bitola 3 solar power plant will be developed on the site of a depleted coal mine in Bitola, southwestern North Macedonia.
The European Bank for Reconstruction and Development (EBRD) provides a government-guaranteed loan of up to €37 million, while the German development bank KfW provides a government-guaranteed loan of €50 million. The agreement is the first joint financing and implementation of a project between the EBRD and KfW.
The financing package allows ESM to finance the development, construction and operation of Bitola 3. Once operational, the project will become North Macedonia’s largest solar energy project, capable of generating approximately 180 GWh of electricity annually.
Lazo Uzunčev, general manager of ESM, noted that the utility is on track to increase domestic production from renewable energy sources by more than 200 MW over the next two to three years, thanks to a series of solar and wind energy projects under development. “This not only means energy stability, but also a significant contribution to the environment by reducing annual CO2 emissions by more than 260,000 tons,” Uzunčev explains.
EBRD Head of North Macedonia Fatih Türkmenoğlu said the investment marks a turning point for North Macedonia’s energy sector. “By repurposing existing coal infrastructure for renewable energy, we not only support the country’s climate ambitions, but also ensure that the transition to the green economy is fair, inclusive and sustainable,” Türkmenoğlu added.
North Macedonia has set a target to phase out coal and reduce greenhouse gas emissions by 82% by 2030 under its National Energy and Climate Plan. The plan also targets a 38% share of renewable energy in gross final energy consumption by the end of the decade, up from around 22% in 2024.
According to figures from the International Renewable Energy Agency (IRENA), the country’s cumulative solar capacity stood at 833 MW at the end of last year.
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