Skopje, 19 December 2024 (MIA) - Power Plants of North Macedonia (ESM) has secured an EUR 55 million loan from Germany’s KfW bank for the construction of photovoltaic power plant Bitola 2 and the construction of the second stage of the Bogdanci wind park, the Ministry of Finance said in a press release Thursday.

The Ministry said the funds have been secured from a loan with a state guarantee, and at favorable conditions with a repayment period of 15 years and a five-year grace period.

The loan agreement was signed on Thursday by KfW Office Skopje Director Moritz Remé and Lazo Unzunchev, the Director General of ESM. The guarantee agreement was signed by Minister of Finance Gordana Dimitrieska-Kochoska and KfW Director Remé.

“As a Government we recognize the need to increase green energy production and the guarantee for the realization of this agreement has been issued in that context, as well as securing the necessary funds for the second stage of the Bogdanci wind park project and the Bitola 2 photovoltaic power plant. These projects are a part of an investment cycle that we are launching and upon which we will base our development in the future.

The Government has a serious approach and will invest all efforts to realize the projects that will have added value for the economy,” Dimitrieska-Kochoska said.

The Bitola 2 photovoltaic power plant will have an installed capacity of at least 50 MW. The power plant is expected to produce around 80-90 GWh of electricity annually, which would cover the needs of over 20.000 households. The investment worth EUR 47.3 million will reduce annual carbon emissions by 63.000 tons.

As part of the second stage of the Bogdanci wind park project, an additional four windmills with a total capacity of 13.6 MW will be installed at the existing wind park, which currently has 16 windmills with a total capacity of 36.8 MW. With the expansion, the total installed capacity of the wind park will be raised to around 50 MW. 
KfW Office Skopje Director Moritz Remé stressed that Germany and KfW have been supporting the “greening” of the country’s energy production capacities over the past 20 years.

“We are proud that we can continue to support the efforts of the Government and ESM and to contribute to the creation of a sustainable energy system of which the citizens will be the greatest beneficiaries. This will be the largest photovoltaic power plant in the country and it will undoubtedly contribute to increasing the share of renewables in the country’s energy mix,” Remé said.

The German Ambassador to North Macedonia, Petra Drexler, said the new German loan is welcome news for anyone who cares about the sustainability of the energy sector in the country.

“It will help the country in its efforts to implement the Western Balkan Green Agenda as well as move away from its dependence on old, coal-based infrastructure. The funds from the loan will be invested in a photovoltaic power plant near Bitola and an expansion of the Bogdanci wind park. Both investments will contribute to the realization of the enormous potential for renewable energy to the benefit of the citizens of North Macedonia,” Drexler said.

Photo: Ministry of Finance