The European Bank for Reconstruction and Development (EBRD) is reviewing a proposal to provide up to 37 million euros to North Macedonia’s state-owned power utility ESM for a major solar power project. The plant, planned for construction on the site of a depleted coal mine near Bitola, will have an installed capacity of 134 MW.
A financing decision is expected by 5 November. The total investment is estimated at 87 million euros, with 50 million already secured through a sovereign-guaranteed loan from Germany’s development bank KfW. Once operational, the facility is expected to produce around 176 GWh of electricity annually. The project is intended to advance the transition from coal to renewable energy sources and aligns fully with the EBRD’s Green Economy Transition framework.
Recognized as a flagship investment under the Just Energy Transition Investment Platform launched in 2023 with EBRD technical assistance, it is seen as a key element of North Macedonia’s energy transition strategy. The selection of Bitola as the site is symbolic, as the region has long been the country’s lignite-based power generation hub, now being phased out due to environmental concerns and rising carbon costs.
