/LONDON, December 22, 2025, 10:00 GMT, RENEWABLE MARKET WATCH™/
The European Bank for Reconstruction and Development (EBRD) is set to provide a significant sovereign-guaranteed loan amounting to €37 million to Elektrani na Severna Makedonija (ESM), which is North Macedonia’s state-owned electricity generation utility. This crucial funding will support the ambitious development, construction, and operational rollout of a 134 MWdc solar power plant, strategically located on the site of a former coal mine in Bitola. The project represents a groundbreaking initiative in the region’s transition to sustainable energy and will be complemented by an additional €50 million sovereign-guaranteed loan from German development bank KfW. This partnership marks the first time the EBRD and KfW have collaborated to finance and implement a project, highlighting a significant step towards enhancing renewable energy infrastructure in North Macedonia.
The Bitola 3 Solar Power Plant stands out as a premier initiative within the Just Energy Transition Investment Platform (JETIP), which North Macedonia inaugurated at COP28 in 2023. This ambitious project is backed by crucial technical guidance from the European Bank for Reconstruction and Development (EBRD). The primary objective of JETIP is to mobilise a substantial investment of up to €3 billion to provide essential technical expertise and policy support. This initiative aims to facilitate the deployment of 1.7 gigawatts of new renewable energy capacity by 2030. It aims to ensure a fair and just transition for communities that have historically relied on coal, helping them adapt to and thrive in a more sustainable energy landscape.
Bitola 3 is projected to generate 180.9 GWh of renewable electricity annually and reduce CO2 emissions by approximately 134,000 tonnes each year. This initiative aligns with North Macedonia’s objective to phase out coal and achieve an 82 per cent reduction in greenhouse gas emissions by 2030, as outlined in the National Energy and Climate Plan and the updated Nationally Determined Contributions. The project aims to enhance solar energy deployment, bolster domestic power generation, reduce reliance on energy imports, and promote a cleaner, more resilient energy system.
The project aims to enhance ESM’s corporate governance through a range of initiatives, including training and improving anti-corruption practices and policies. These efforts will establish a robust internal compliance function for ESM, thereby strengthening compliance frameworks and overall governance standards. Additionally, the transaction supports gender inclusion by facilitating ESM’s involvement in the Women-Led Coal Transition platform. This initiative emphasises community engagement, capacity building, and climate leadership, all of which are designed to integrate gender considerations and promote equitable opportunities during the energy transition.
The project will be jointly financed and executed in collaboration with KfW (Kreditanstalt für Wiederaufbau) through a formal Project Implementation Agreement. This Agreement lays out a comprehensive framework for cooperation and strengthens the strategic partnership between the EBRD (European Bank for Reconstruction and Development) and KfW, particularly to advance initiatives in the Western Balkans aimed at expediting the transition to a green economy. Bitola 3 marks a pivotal milestone in North Macedonia’s journey towards a more sustainable energy landscape. This initiative is not only significant for its immediate impact but also aligns seamlessly with the EBRD’s broader strategic objectives outlined in its North Macedonia Country Strategy and Energy Sector Strategy. Furthermore, it contributes to their Green Economy Transition approach and the principles established in the Equality of Opportunity Strategy, reinforcing the commitment to inclusive and sustainable development in the region.
Fatih Türkmenoğlu, EBRD Head of North Macedonia, said: “This investment marks a turning point for the energy sector in North Macedonia. By repurposing legacy coal infrastructure for renewable energy, we are not only supporting the country’s climate ambitions but also ensuring that the green economy transition is fair, inclusive and sustainable. Bitola 3 will increase generation from renewables and reduce CO2 emissions.”
Moritz Remé, KfW Director of Kosovo and North Macedonia, added: “With such partnerships, we can achieve more and contribute to a sustainable and resilient energy future.”
Lazo Uzunčev, General Manager of ESM, said: “Our strategic goals are already being implemented with great momentum on the ground. Today, we are opening bids to select contractors for photovoltaic power plants Oslomej 2 and Bitola 1, and intensive work is under way on implementing the second phase of the Bogdanci wind park. Through all these projects, including Bitola 3, we will increase domestic production from renewables by more than 200 MW in the next two to three years. This not only means energy stability, but also a significant environmental contribution by reducing annual carbon emissions by more than 260,000 tonnes.”
The EBRD is a major institutional investor in North Macedonia, having invested over €3 billion in more than 200 projects across the country.
For more information and answers to your questions about the North Macedonian and the Western Balkans solar power market and related content, you may read here: Western Balkans Solar Photovoltaic (PV) Market Outlook 2025 ÷ 2034
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Image Credit: EBRD
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