22nd December 2025, Skopje – Today, Sovereign Guarantee Agreements and Loan Agreements totalling EUR 97 million were signed to finance two capital energy projects that will transform the country’s energy outlook. From the respective financing, EUR 87 million allocated to AD ESM is designated for the largest Photovoltaic Power Plant “Bitola 3”, with financing provided by KfW (EUR 50 million) and the European Bank for Reconstruction and Development - EBRD (EUR 37 million). KfW will allocate additional EUR 10 million for the implementation of the third phase of the rehabilitation of the country’s hydropower plants.
At the event, attended by Prime Minister, Hristijan Mickoski, the Sovereign Guarantee Agreements were signed by Minister of Finance, Gordana Dimitrieska-Kochoska, EBRD Country Representative, Fatih Türkmenoğlu, and Head of KfW’s Regional Office, Moritz Remé. Furthermore, AD ESM Director, Lazo Uzunchev, signed separate Loan Agreements with representatives of international financial institutions.
Minister of Finance, Gordana Dimitrieska-Kochoska, extended her sincere gratitude to the European Bank for Reconstruction and Development and the German KfW Development Bank, for their continued support of the Republic of Macedonia in implementing major infrastructure projects, particularly in the energy sector. She also emphasized that the Ministry of Finance, by extending a sovereign guarantee, has provided a total of EUR 87 million for this Project – EUR 50 million from KfW and EUR 37 million from EBRD, along with additional EUR 10 million for revitalization of the hydroelectric power plants.
“As a result of these capital investments, together with AD ESM, we are boosting the domestic energy generation, ensuring a reliable electricity supply and supporting economic stability and sustainable development. Ministry of Finance remains fully committed to supporting projects that build the future of our country – a future that is green, economically strong and energy independent,” Dimitrieska-Kochoska stated.
AD ESM Director, Uzunchev, emphasized the crucial importance of this step for the company’s operational sustainability and for Macedonia’s energy security.
“Our strategic objectives are already being implemented with an accelerated pace on the ground. On this very day, we are opening the bids for the selection of contractors for the Photovoltaic Power Plants “Oslomej 2” and “Bitola 1 and 2”, alongside intensive on-site implementation activities for the second phase of Bogdanci Wind Park. By implementing all these projects, including the new “Bitola 3” Power Plant, domestic renewable energy generation is projected to increase by more than 200 MW over the next two to three years. This not only ensures energy stability but also makes a significant environmental contribution by reducing annual CO₂ emissions by more than 260,000 tons,” Uzunchev stated.
As Ambassador of the Federal Republic of Germany, Petra Drexler, stated that, over the past years, Germany and the EU have continuously supported this country on its path toward a sustainable and energy-resilient future.
“The Agreements signed by the German KfW Development Bank, the European Bank for Reconstruction and Development, the Government and ESM mark another step forward in ensuring smooth energy transition through a balanced mix of renewable energy sources,” she said.
According to KfW Regional Director, Moritz Remé, renewable energy sources are no longer an alternative—they are now mainstream.
“It is great to see that the Government and ESM remain firmly on this path, which will also help reduce pollution in the country,” Remé said.
EBRD representative, Fatih Türkmenoğlu, described today’s event as a turning point for the country’s energy sector.
“This is a moment when the country reaffirms its strong commitment and confidently steps toward a cleaner and more resilient path. Photovoltaic Powerplant Bitola 3 Project fully embodies that choice. By repurposing legacy coal infrastructure for renewable energy, we are not only supporting the country but also ensuring that the green transition is real and that strong partnerships can unlock powerful support in new ways, and that the future can be cleaner, fairer and safer than the past,” Türkmenoğlu said.
As regards this investment cycle, special focus is placed on the Hydropower Plant Rehabilitation Project, with a total financial scheme amounting to EUR 47.3 million, brought to completion with today’s Loan Agreement from KfW and a substantial EUR 10 million grant through the European Union’s WBIF. The implementation of this capital project will result in increased domestic energy generation from our hydropower resources by an additional 50 GWh per year.
