Auctions for 62 MW solar power plants on state, private land to be launched soon

In the first phase of the new model for the development of renewable energy sources, the Government of North Macedonia will soon announce a public call for the construction of 62 MW solar power plants, 35 MW to be built on state land and 27 MW on private land, with feed-in premiums awarded for 15 years. The country has solar power plants with an installed capacity of 18.4 MW, and the new model envisages the construction of another 200 MW by the end of 2021.

The state land is located near Makedonski Brod (two locations with 5 MW each), and near Sveti Nikola (one location for 10 MW, one for 5 MW, two for 2 MW and six for 1 MW).

According to Deputy Prime Minister Koco Angjusev, investors will sell electricity on the market and will also receive premiums from the government. The government anticipates EUR 4 million will be needed for these subsidies when all 200 MW solar power plants are built.

The state will publish a public call and define the ceiling price for the premiums, while investors will submit their bids in an electronic auction.

The one who offers the lowest bid and fulfills all technical conditions will be able to build a solar power plant on state land, Angjusev said.

The state will conduct all administrative procedures for the investments, such as land conversion, building permits, and connections to the power network, which has been a major problem so far, in order to speed up the construction.

Angjusev said that construction on private land is designed for smaller investors, who intend to build power plants with an installed capacity of up to 200 kW, from 200 to 500 kW, from 500 to 1,000 kW or from 1,000 to 3,000 kW.

Auction ceiling price set at EUR 15/MWh – Bekteshi

Economy Minister Kreshnik Bekteshi has said that a program has been adopted for financial support for electricity generation by privileged producers who receive premiums.

The budget envisages MKD 30 million (about EUR 500,000) in payments for these subsidies, he said, adding that the auction ceiling price in 2019 will be EUR 15/MWh for solar power plants.

He announced that public calls for solar power plants on state and private land would soon be announced, but did not specify when.

According to the Government of North Macedonia, the first draft of the tendering documentation has been prepared with the technical assistance of the European Bank for Reconstruction and Development (EBRD).