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

Country

Comments

0

Share

Published:

February 15, 2021

Country:

Comments:

0

Share

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 energy projects, including the transition from coal to gas, 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 for projects, Prime Minister Zoran Zaev said.

Zaev: Green scenario is most acceptable

German support is crucial for accelerating the pace of the energy transition, replacing coal with natural gas 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.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment

Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Turkey USD 11 billion energy efficiency 2023

Turkey preparing USD 11 billion for energy efficiency by 2023

05 March 2021 - Turkey plans to lower its primary energy consumption by 14% with nearly USD 11 billion in investment earmarked for energy efficiency by 2023

Serbia subsidies citizens for energy efficiency

Serbia to roll out subsidies for citizens for energy efficiency this year

05 March 2021 - Minister Mihajlović says homeowners could start to apply for funds for wall insulation and new windows this summer

Albania new energy efficiency law public private

Albania introduces obligations for public, private sector to increase energy efficiency

25 February 2021 - Changes to the law on energy efficiency set mandatory energy efficiency targets for the public, private sector, and large consumers. 

energy label eu new march

Discover new energy labels that EU is introducing on March 1

24 February 2021 - Fridges, dishwashers, washing machines, and televisions will get new energy labels from March 1 and lamps from September 1.