Renewables

Germany extends EUR 80.5 million in cheap loans for energy in North Macedonia

Germany EUR 80.5 million cheap loans energy North Macedonia

Photo: Government of North Macedonia

Published

February 15, 2021

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Published:

February 15, 2021

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Germany’s KfW Development Bank is providing a credit package of EUR 80.5 million under favorable terms to the Government of North Macedonia for renewable energy projects and a EUR 2.4 million grant for feasibility studies for renewables.

Elektrani na Severna Makedonija (ESM) signed an agreement with Germany’s KfW Development Bank, which approved EUR 2.4 million in grants for feasibility studies and other documentation for renewable energy projects with a projected output of 650 GWh per year. The deal opens the way for the state-controlled energy company of North Macedonia to draw EUR 80.5 million in cheap loans, Prime Minister Zoran Zaev said.

Zaev: Green scenario is most acceptable

German support is crucial for accelerating the pace of the energy transition and reducing carbon emissions, in line with the country’s Energy Development Strategy until 2040, he added. It implies a strong willingness and commitment to implement the green scenario as the most acceptable for the country’s development, which should provide economic and environmental benefits, Zaev stated.

A part of the grant will be used for the upgrade of ESM’s Energetika heating and power complex in Gazi Baba

In the past 20 years, Germany funded development projects in North Macedonia with more than EUR 500 million, of which more than half was extended to the energy sector, he noted. The prime minister pointed to the example of the Bogdanci wind power plant and stressed KfW is also financing its expansion.

German Ambassador Anke Holstein said her country clearly sees the advantages of renewable energy and the steps like the ones North Macedonia is taking in the reforms of the energy sector.

Solar thermal system to be installed at REK Bitola

The EUR 2.4 million grant will be used for the production of feasibility studies and studies on environmental impact and social aspects of green energy projects.

ESM intends to use it for solar parks of more than 140 MW in the REK Bitola coal complex and to add solar thermal facilities for heating in the area, to rehabilitate large hydropower plants, install a wind park in Miravci and modernize and upgrade the Energetika heating and power complex in Gazi Baba in Skopje, the government said. The company plans renewable energy projects worth up to EUR 600 million in the next five years.

Germany signed a similar agreement with Kosovo* in December.

 

CORRECTION: The initial version of the article said the loan would be also used for switching power plants from coal to gas. KfW has clarified that it “does generally not finance any investments into gas based power generation.”

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