The state-owned company Elektrani na Severna Makedonija (AD ESM) is embarking on a new investment cycle in renewable energy sources with the support of a favorable loan from the German development bank KfW.
This initiative includes the construction of the Bitola 2 solar power plant and the second phase of the Bogdanci wind park expansion. Funding for these two significant projects, totaling 55 million euros, has been secured through a state-guaranteed loan signed by the Ministry of Finance, with a 15-year repayment period and a five-year grace period, according to an AD ESM statement.
The Bitola 2 solar power plant is part of North Macedonia’s efforts to increase the share of renewable energy in its grid. This facility will be built within the Bitola mining-energy complex, which also encompasses coal-fired power plants and coal mines. The project is being realized with financial support from international institutions, including a loan and grant from KfW.
The Bogdanci wind park, North Macedonia’s first wind energy facility, currently operates with sixteen wind turbines, each with a capacity of two to three megawatts. Plans to expand this wind park aim to further boost clean energy production in the country.
The loan agreement was signed by Moritz Reme, director of the KfW offices in Skopje and Pristina, and Lazo Uzuncev, General Director and Chairman of the Board of Elektrani na Severna Makedonija.
“As a government, we recognize the need to increase green energy production. In this regard, we have issued a guarantee for the realization of this agreement and for securing the necessary funds to finance the Bogdanci Wind Park – Phase 2 and Bitola 2 solar power plant projects. These projects are part of an investment cycle on which we are basing our future development”, stated Gordana Dimitrieska-Koçoska, Minister of Finance.
She added that this investment cycle is supported by a significant amount of planned capital investments in the 2025 budget.
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Additional Investments in Solar Power
The European Bank for Reconstruction and Development (EBRD) and AD ESM have signed an agreement for a European Union grant to build two new solar power plants—Bitola 1, with an installed capacity of 20 megawatts, and Oslomej 2, with a capacity of 10 megawatts.
The solar power plants are expected to generate around 46 gigawatt-hours of electricity annually, enough to supply over 7,000 households. Moreover, the projects are anticipated to reduce CO2 emissions by approximately 40,000 tons per year, significantly contributing to environmental protection. The plans also include the reclamation of 45 hectares of land in the Bitola and Oslomej complexes, improving environmental health in Bitola, Kičevo, and the surrounding areas.
Construction is expected to be completed by 2026, bringing additional socio-economic and environmental benefits. The construction phase will stimulate the local economy by engaging domestic companies, while the completed projects will create new jobs. The power plants will be designed and built by the most competitive bidder, adhering to the highest European and global standards, with the entire contractor selection process conducted in line with EBRD rules.
The total grant for these projects amounts to nearly five million euros, while a previously signed 25 million euros loan has further supported their development.
