Germany provides € 80.5 million in cheap energy loans in North Macedonia

German development bank KfW is providing a loan package of 80.5 million euros on favorable terms to the government of North Macedonia for energy projects, including the transition from coal to gas, and a subsidy of 2.4 million euros for feasibility studies for renewable energies.

Elektrani na Severna Makedonija (ESM) signed an agreement with the German development bank KfW, which approved 2.4 million euros in grants for feasibility studies and other documents for renewable energy projects with a planned production of 650 GWh per year. The deal paves the way for the state-controlled energy company of North Macedonia to get € 80.5 million in cheap loans for projects, Prime Minister Zoran Zaev said.

Zaev: The green scenario is the most acceptable

German support is crucial for accelerate the rhythm energy transition, replace coal with natural gas and reduce carbon emissions, in line with the country’s energy development strategy until 2040, he added. This implies a strong will and commitment to implement the green scenario as the most acceptable for the development of the country, which should bring economic and environmental benefits, Zaev said.

Part of the grant will be used for the modernization of the heating and electricity complex of ESM Energetika in Gazi Baba

Over the past 20 years, Germany has funded development projects in North Macedonia with more than 500 million euros, more than half of which has been extended to the energy sector, he noted. . The Prime Minister cited the example of Bogdanci wind power plant and pointed out that KfW is also financing its expansion.

German Ambassador Anke Holstein said her country clearly sees the benefits of renewables and steps like the ones North Macedonia is taking in energy sector reforms.

Solar thermal system to be installed at REK Bitola

The 2.4 million euro grant will be used for the production of feasibility studies and studies on the environmental impact and social aspects of green energy projects.

ESM intends to use it for solar parks of more than 140 MW in the Coal complex REK Bitola and to add solar thermal installations for heating in the region, to rehabilitate large hydropower plants, install a wind farm in Miravci and modernize and modernize the Energetika heating and electricity complex at Gazi Baba in Skopje, the government said. . The company plans renewable energy projects worth up to € 600 million over the next five years.

Germany signed a similar agreement with Kosovo * in December.

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