MEPSO secures funds for grid investments; upgrade to enable connecting 1.2 GW of renewables

MEPSO, the transmission system operator of North Macedonia, has secured financing for a project to strengthen the grid. It would enable the connection of another 1.2 GW of renewable electricity plants.

MEPSO and the European Bank for Reconstruction and Development (EBRD) have signed an agreement on a EUR 26.4 million loan. Total project cost is EUR 34.5 million.

The company has also secured a EUR 7.6 million investment grant from the Western Balkans Investment Fund and a EUR 500,000 grant from the Climate Investment Fund Accelerating Coal Transition.

The funds will be used for the construction of a new 400/110 kV substation at the village of Miletkovo near Gevgelija, its connection to the existing 400 kV transmission line from substation Dubrovo to substation Thessaloniki in Greece, and the reconstruction and upgrade of the existing 110 kV transmission line from substation Valandovo to substations Strumica 2 and Strumica 1, MEPSO said.

The project is expected to reduce energy losses by about 14.5 GWh each year

According to the company, the investment will enable the connection of 1.2 GW from renewable energy sources and increase the reliability of electricity supply in the southeastern region of North Macedonia.

The project is also expected to reduce energy losses by about 14.5 GWh each year, EBRD said. MEPSO will, the bank added, create a training center for high-voltage grid operators in the coal-reliant southwest region, benefiting not only the company’s employees, but also other workers affected by the green energy transition.

The loan agreement was signed by EBRD President Odile Renaud Basso and Zuhdi Enuz, General Director and President of the Management Board of MEPSO. The signing was attended by Minister of Energy, Mining and Minerals Sanja Božinovska and Head of the EU Delegation to North Macedonia David Geer.

Basso: The investments will transform North Macedonia’s energy landscape

Odile Renaud Basso said that by decreasing transmission losses by 14.5 GWh and reducing CO2 emissions by over 8,000 tons per year, the project would transform North Macedonia’s energy landscape.

She added that the project includes support for the development a grid master plan, identifying key grid investments necessary to deploy new renewables and ensure a smooth transition to green energy.

Enuz: The grid capacity for integration of the renewables will be increased from 100 MW to 1,200 MW

Enuz said the capacity of the transmission network around TS Valandovo for the integration of renewable energy resources is limited to about 100 MW.

Upon the completion of the project, for the purpose of strengthening the transmission network in the southeastern region, the capacity for the integration of renewables will be about 1.2 GW, he explained.

Božinovska: The project will enable further strengthening of the MEPSO transmission network

Minister Sanja Božinovska said the project would enable MEPSO’s transmission network to strengthen further, significantly lower the electrical power losses and improve the stability and reliability of the network, directly contributing to the integration of more renewable electricity plants

According to Ambassador David Geer, without transmission, there is no transition. “This is why investing in transmission lines and smart grids is crucial for North Macedonia’s progress on decarbonization and pushing forward the Green Agenda,” he added.