North Macedonia’s power utility Elektrani na Severna Makedonija (ESM) and the World Bank have signed a grant agreement worth USD 2.4 million. The funds are intended for preparatory activities for the REK Bitola 1 cogeneration plant project.
In January 2024, North Macedonia started switching its thermal power plants in Bitola and Negotino from coal and fuel oil, respectively, to systems capable of using both natural gas and hydrogen.
The agreement, signed by ESM CEO Lazo Uzunchev and Carole Megevand, World Bank Country Manager for Kosovo* and North Macedonia, marks an important milestone in North Macedonia’s energy transition and energy sector modernization, ESM said.
The signing ceremony was attended by Prime Minister Hristijan Mickoski and Minister of Energy, Mining and Mineral Resources Sanja Božinovska.
The funds will be used to prepare a feasibility study for the power plant
Lazo Uzunčev stressed that the funds are intended for preparatory activities for the REK Bitola 1 cogeneration plant and the expansion of the Bitola district heating network.
“Through this grant, ESM will carry out the procedures for selecting eminent consultants for drafting studies, including the key feasibility study, which will serve as the foundation for launching an international tendering for the design and construction of the power plant in line with the highest international standards,” he underlined.
The investment is estimated at EUR 200 million
The planned investment, estimated at EUR 200 million, will be developed near the existing REK Bitola complex. It will enable the production of electricity and heat, contributing to lower emissions and alignment with up-to-date domestic and EU standards, while providing cheaper heat supply for citizens of Bitola and the surrounding area, according to ESM.
The project is also expected to improve the environment of the Plagonia region.
Carole Megevand stressed that the grant facility for project preparation (GFPP) will lay the groundwork for decarbonizing the power sector, integrating cleaner energy, and expanding district heating to provide a more reliable heat supply for local communities.
This project also reflects the country’s broader path toward closer alignment with European energy and climate objectives, she added.
Božinovska: North Macedonia must produce more domestic energy
Minister Sanja Božinovska stressed that there is no compromise on the country’s energy security.
“Our vision is clear – North Macedonia must produce more domestic energy while gradually reducing its carbon footprint. The more renewable energy sources we integrate into the system, the more we need stable and flexible baseload capacities that will ensure security of supply. Our goal is to build a modern energy system that will align with European policies, while simultaneously guaranteeing secure and affordable energy for citizens and industry,” she said.
The country has been preparing a project to build cogeneration power plants for several years.
North Macedonia’s 2026 plan for power plants and batteries includes 495 MW of gas-fired cogeneration capacity. In July last year, the country also signed a memorandum of understanding with Kazancı Holding on investments in the energy sector, including gas-fired power plants.
