A new step towards clean, renewable energy in North Macedonia

North Macedonia’s efforts to decarbonise the energy sector received another boost with the signing of a grant agreement on 18 March 2024 to increase the capacity of Bogdanci Wind Park.

The grant for €9.2 million from the EU’s Western Balkans Investment Framework was signed between the state-owned ‘Power Plants of North Macedonia’ (AD ESM) and KfW Development Bank to develop the second phase of this already-successful wind park.

Phase 2 will increase the capacity of the wind park by up to 15 MW, which is expected to produce around 50 GWh of electricity annually, equivalent to the energy demand of around 6,000 households. In total, over 22,000 households will be supplied with more reliable and sustainable electricity.

"With the process of decarbonisation, it is of great importance to increase investments in renewable sources in order to increase energy security and mitigate the negative impacts on the climate," stated Pablo Obrador, Director of the Energy Division for Western Balkans and Turkiye at KfW Development Bank.

The Bogdanci Wind Park has shown outstanding results in its ten years of operation.

Through the production of over 1000 GWh of electricity, it exceeded the production plan foreseen in the project and in 2021 it produced 1.95% of the country’s total electricity generation. The completion of this second phase will contribute to the creation of new jobs, development of the local community and improvement of the energy infrastructure.

“The huge sustainable energy potential of North Macedonia, especially through wind and solar energy, is an enormous opportunity for the country, which is important in the advancement of the Green Agenda”, emphasized Holger Schröder from the European Commission’s Directorate for Neighbourhood Policy (DG NEAR). He added, “The modernisation and climate transformation of the energy sector – with the support of Team Europe – is a key part of the EU accession process. The EU will continue to be a strong partner in providing assistance for the implementation of renewable energy projects with the goals of promoting economic growth, environmental protection and ultimately bringing the Republic of North Macedonia closer to the European Union."

“As part of our joint global commitment, the development of renewable energy is a key priority of Germany's engagement in the Republic of North Macedonia. The Bogdanci wind park contributes to the greening of the energy sector. And what's more important: it also makes it more sustainable," said Petra Drexler, Ambassador of the Federal Republic of Germany.

This investment is a continuation of the EU’s support for North Macedonia’s energy transition. A year ago, a loan agreement was signed for the implementation of the third phase of the “Rehabilitation of Six Large Hydro Power Plants”, which includes the replacement of outdated and obsolete equipment and will result in increased reliability and stability of the system, as well as environmental protection. The same project is also co-financed with grant funds from the WBIF in the amount of €11.1 million. Furthermore, a memorandum of understanding signed in the margins of COP 28 in Dubai between North Macedonia and a consortium of International Financial Institutions makes €3 billion available for the implementation of the Just Transition.

"It is a special honor and pleasure for me that today we confirm our commitment to renewable energy, which represents continuity in the support from the European Union and KfW Bank,” said the general director of AD ESM, Vasko Stefanov. “The grants amounting to 20 million euros from the European Union, intended for the Bogdanci Wind Park Phase 2 and for the Rehabilitation of six large Hydro Power Plants Phase 3, are proof of the successful policies of the Government in the decarbonisation of the energy sector, as well as the commitment of AD ESM for the construction of a sustainable energy sector that has the capacity to cope with the challenges of global economic flows."