Elektrani na Severna Makedonija (ESM), the state-owned electricity generation utility of North Macedonia, has secured a €87 million ($102.5 million) financing package for a 134 MW solar project.
The Bitola 3 solar power plant will be developed at the site of an exhausted coal mine in Bitola, southwestern North Macedonia.
The European Bank for Reconstruction and Development (EBRD) is providing a sovereign-guaranteed loan of up to €37 million, while German development bank KfW is delivering a €50 million sovereign-guaranteed loan. The agreement is the first joint financing and implementation of a project between EBRD and KfW.
The funding package will allow ESM to finance the development, construction and operation of Bitola 3. Once operational, the project is set to become North Macedonia’s largest solar asset, capable of generating around 180 GWh of electricity annually.
ESM General Manager, Lazo Uzunčev, commented that the utility is on track to increase domestic production from renewables by more than 200 MW in the next two to three years thanks to a series of solar and wind projects under development. “This not only means energy stability, but also a significant environmental contribution by reducing annual carbon emissions by more than 260,000 tonnes,” Uzunčev explained.
EBRD Head of North Macedonia, Fatih Türkmenoğlu, said the investment marks a turning point for the energy sector in North Macedonia. “By repurposing legacy coal infrastructure for renewable energy, we are not only supporting the country's climate ambitions but also ensuring that the green economy transition is fair, inclusive and sustainable,” Türkmenoğlu added.
North Macedonia has set a target of phasing out coal and cutting greenhouse gas emissions by 82% by 2030 under its National Energy and Climate Plan. The plan also aims for a 38% share of renewable energy in its gross final energy consumption by the end of the decade, up from around 22% in 2024.
The country’s cumulative solar capacity stood at 833 MW by the end of last year, according to figures from the International Renewable Energy Agency (IRENA).
