North Macedonia in talks on project to build two hydropower plants

North Macedonia is negotiating a strategic project to build two hydropower plants, Čebren and Galište, in an investment estimated at EUR 1.2 to 1.3 billion, according to Prime Minister Hristijan Mickoski. A tender for building the Čebren pumped storage hydropower plant was annulled by the previous government in early 2024.

The country intends to finance the construction of the two hydropower plants with a loan from the United Kingdom, the prime minister said. He indicated that funding has been secured for several government projects, partly through loans and partly through private investments, according to a statement by the Government of North Macedonia.

The Čebren and Galište project could be financed from a British loan

In the previous tender, the Čebren hydroelectric project was planned to have a capacity of 333 MW, with an option for another unit and 458 MW in total.

In early 2024, the former government annulled the tender, in which Greece-based Public Power Corp. (PPC) and Archirodon were selected for the Čebren project. The authorities said at the time that they would analyze whether it would be more profitable to build Čebren with the state’s own funds or with the help of strategic investors.

A few months ago, Minister of Energy, Mining and Minerals Sanja Božinovska said projects were under development for battery energy storage systems (BESS) and pumped storage hydropower plants.

The project will last several decades, Mickoski says

Addressing the parliament today, Mickoski described the project as strategic, adding that it would not be completed during this government’s term of office. “This is a project that will last several decades,” he said. The funding will be provided through low-interest loans as a state investment, and the rest under market terms and through direct private investment, according to Mickoski.

The prime minister is also confident that the two proposed reservoirs could provide additional water for irrigation amid future climate change impacts and help boost tourism development in the area.