Investing in Macedonia’s Energy Infrastructure: Key Projects and Opportunities
Macedonia, a landlocked country in the heart of the Balkans, has been steadily working on improving its energy infrastructure to ensure sustainable economic growth and attract foreign investments. The government has identified the energy sector as a key area for development, with a focus on renewable energy sources, modernization of existing facilities, and regional cooperation. This presents a wealth of opportunities for investors looking to tap into the country’s potential.
One of the most significant projects in Macedonia’s energy sector is the construction of the 400 kV interconnection power line between Macedonia and Albania. This project, supported by the European Union, aims to strengthen the regional electricity market and improve the security of supply. The interconnection line will enable the exchange of electricity between the two countries, facilitating the integration of renewable energy sources and contributing to the diversification of energy sources in the region. This project is expected to be completed by 2023, and it represents a major step forward in the development of Macedonia’s energy infrastructure.
Another key project in Macedonia’s energy sector is the construction of the Boskov Most hydropower plant. This 70 MW facility, located in the Mavrovo National Park, is expected to significantly increase the country’s hydropower capacity and contribute to the reduction of greenhouse gas emissions. The project, financed by the European Bank for Reconstruction and Development (EBRD), has faced some controversy due to environmental concerns. However, the Macedonian government has been working closely with international partners to ensure that the project meets all necessary environmental standards.
In addition to these large-scale projects, Macedonia has been focusing on the development of small hydropower plants (SHPPs) to further increase its renewable energy capacity. The government has set a target of constructing 100 SHPPs by 2025, with a total installed capacity of 200 MW. To encourage investment in this sector, the government has introduced feed-in tariffs for SHPPs, guaranteeing a fixed price for the electricity produced. This has attracted both local and international investors, with several SHPPs already in operation and many more in the planning and construction stages.
Solar energy is another area where Macedonia sees potential for growth. The country enjoys an average of 2,100 hours of sunshine per year, making it an ideal location for solar power generation. The government has set a target of installing 200 MW of solar capacity by 2025 and has introduced feed-in tariffs for solar power producers. Several large-scale solar projects are already underway, including the 10 MW Oslomej solar power plant, which is being developed by the state-owned power utility ELEM.
Wind energy is also on the rise in Macedonia, with the 36.8 MW Bogdanci wind farm currently in operation and plans for further expansion. The government has set a target of 50 MW of installed wind capacity by 2025 and is actively seeking investors for new wind projects.
Investing in Macedonia’s energy infrastructure presents numerous opportunities for investors, particularly in the renewable energy sector. The government’s commitment to modernizing its energy infrastructure and increasing the share of renewable energy sources, combined with attractive feed-in tariffs and support from international partners, makes Macedonia an appealing destination for investment. As the country continues to develop its energy sector, investors can expect to see a range of new projects and opportunities in the coming years.
