Several energy storage investments underway in North Macedonia

North Macedonia, which has been attracting investments in battery factories, is in talks on a project worth up to EUR 360 million, according to Prime Minister Hristijan Mickoski. In addition, Hydrogen Utopia intends to build a plant for the production of hydrogen from waste plastics. Minister of Energy, Mining and Minerals Sanja Božinovska said projects are underway for battery energy storage systems and pumped storage hydropower plants.

Prime Minister Hristijan Mickoski revealed in an interview with state news agency MIA that the Government of North Macedonia is in final negotiations with a company from “a very powerful” European Union member state for an investment of EUR 350 million to EUR 360 million in battery production.

The project would create 500 well-paid jobs, he claimed. Turning to the country’s model for foreign investments, Mickoski said it is changing. It won’t be dramatically different than until now, but the point is to diversify into segments with high added value, he explained.

The current way of attracting foreign investments, which started about 20 years ago, is exhausting its potential and it reached its peak, the prime minister stressed.

Avesta building battery factory in Kičevo

Avesta, formerly Avesta Battery and Energy Engineering – ABEE, laid the cornerstone last month for a factory that would manufacture batteries for electric cars. The site is in Kičevo, in the local technological-industrial development zone (TIDZ or, in Macedonian, TIRZ).

The Belgian company said it is investing EUR 10 million in the first phase. It expects to employ 120 people and eventually grow the number to 600.

The government added that exports would amount to EUR 50 million. It expects the sum to increase tenfold within seven years. Avesta launched battery manufacturing projects in 2023 in neighboring Bulgaria as well as in Romania.

Waste-to-hydrogen project under development in North Macedonia

Also late last year, Hydrogen Utopia International (HUI) from the United Kingdom signed a deal with new North Macedonian firm TF Capital. The goal is to build a facility for the production of hydrogen from waste plastics.

TF Capital is responsible for permits, studies and a market entry strategy and business plan. According to HUI, the local partner will also look into the possibility of obtaining subsidies. The British company agreed to pay EUR 5,000 per month to TF Capital, starting in mid-May at the latest. The arrangement will last 18 months or until obtaining a construction permit. TF Capital is entitled to a 5% share in the joint venture.

Hydrogen Utopia said it is developing projects for converting non-recyclable waste plastic into hydrogen, syngas and other carbon-free fuels and products, as well as for the production of heat from renewable sources.

Germany-based BMZ Group to launch production in Skopje

Earlier last year, BMZ Group from Germany broke ground on a EUR 65 million lithium ion battery factory in TIDZ Skopje.

The company targets at least EUR 60 million in total exports in the first three years. The plant is expected to employ 700 people, officials have said.

Minister Sanja Božinovska rekindles initiative for pumped storage hydropower capacities

In a recent interview, North Macedonia’s Minister of Energy, Mining and Minerals Sanja Božinovska said projects are under development for battery energy storage systems (BESS) and pumped storage hydropower plants. The aim is to increase grid stability and flexibility, she added.

Of note, a year ago the former government annulled a tender in which Greece-based Public Power Corp. (PPC) and Archirodon were selected for the Čebren pumped storage hydroelectric project.

Additionally, Božinovska said the ministry is investing more than EUR 26.4 million in power substations in Valandovo and Miletkovo, among other projects. It will enable grid access to projects for 1.17 GW from renewable energy sources, she underscored.