North Macedonia’s state-owned utility ESM has started the third phase of a programme worth roughly €46 million to modernise six large hydropower plants. The initiative is designed to upgrade existing generating assets rather than build new capacity.
Capacity and generation targets
The works are expected to add 13.5 MW of capacity and increase annual generation by about 50 GWh. ESM estimates that the additional output could generate at least €5 million in annual revenue. Actual gains will depend on water availability, which remains a key constraint for hydropower generation.
Financing through KfW and EU support
The programme is financed by a €35 million KfW loan and a €10.7 million EU grant. The EU funding is provided through the Western Balkans Investment Framework.
Plants included in the modernisation programme
The upgrade covers Vrutok, Vrben, Raven, Tikveš, Špilje, and Globočica. Equipment replacement and plant upgrades are intended to improve reliability, reduce interruptions, and extend operating life.
The investment focuses on raising production from existing assets across the six sites. Output increases remain linked to hydrological conditions affecting generation volumes.
