• Thursday, 13 March 2025

ESM and Germany’s KfW bank sign agreements on two renewable energy projects

ESM and Germany’s KfW bank sign agreements on two renewable energy projects

Skopje, 11 February 2025 (MIA) - Tuesday’s signing of two project agreements by Power Plants of North Macedonia (ESM) and Germany’s KfW bank marked the beginning of the process for the construction of the Bitola 2 photovoltaic power station and the second phase of the Bogdanci wind park. The two projects are funded by a state-guaranteed EUR 55 million loan taken out from the KfW bank in December 2024, with a repayment period of 15 years and a 5-year grace period.

“Today we formally mark the beginning of construction of the second phase of the Bogdanci wind park and the construction of the Bitola 2 photovoltaic power station, two capacities that will produce renewable energy. The investment is worth EUR 55 million, EUR 47.3 million of which are for the Bitola 2 photovoltaic power station, while EUR 7.7 million for the Bogdanci wind park,” Prime Minister Hristijan Mickoski said at a press conference Tuesday after the signing of the agreements. 

The Prime Minister said Bitola 2 would be constructed within the mining-energy complex (REK) Bitola and have an installed capacity of 50-60 MW. It is expected to produce around 80-90 GWh of electricity annually, covering the needs of over 20.000 households and cutting annual carbon emissions by 63.000 tons.

“The second phase of the construction of the Bogdanci wind park foresees the construction of an additional four windmills with a total capacity of 13.6 MW. With this, the total installed capacity of the first part of the project together with the second part will be over 50 MW, ensuring an additional annual production of 37 GWh of green energy,” Mickoski said. 

German Ambassador Petra Drexler said Germany is committed to an ambitious climate policy both domestically and internationally, which includes the accelerated construction of renewable sources of energy. The Ambassador said there is no alternative to the energy transition when it comes to tackling climate change, while stressing that it also represents an opportunity for energy independence, ensuring greater security and economic sustainability.

“Climate protection and the economy are not opposed to each other, on the contrary, energy transition provides an opportunity to create new jobs, new markets and new added value,” Drexler said. 

KfW Office Skopje Director Moritz Remé highlighted the significance of expanding the Bogdanci wind park project, which, he said, in 2014 was the first such project in the region that paved the way for others.  

“At that point it became clear to partners in the region that such projects are not only technically possible but also have concrete benefits. This project is commercially successful, and today we are also connecting it with a new significant project such as the Bitola 2 photovoltaic station – the first Macedonian-German solar park in Bitola,” Remé said, adding that the country is a leader in terms of the realization of the green agenda. 

Lazo Unzunchev, the Director General of ESM, said both projects are expected to be completed in 2027.

“ESM and KfW are continuing their cooperation aimed at the realization of energy projects that will significantly boost the country’s portfolio with new renewable energy production capacities,” Uzunchev said.

Uzunchev stressed the projects would accelerate the country’s progress to complete energy independence.

“The two new capacities will enable us to boost our domestic production of green energy and accelerate our progress towards complete energy independence. They will also enable us to meet the European regulations on greenhouse gas emissions faster, and ensure a healthy environment and cleaner air for the citizens,” Uzunchev said

Photo: Screenshot