The European Bank for Reconstruction and Development (EBRD) is bolstering North Macedonia’s green transition with a fresh injection of capital aimed at small and medium-sized enterprises (SMEs). A €4 million loan has been approved for Komercijalna Banka AD Skopje, part of a broader, multi-partner initiative designed to accelerate the adoption of energy-efficient and renewable energy technologies across the country’s private sector.
EBRD Approved €4 million for Green Energy Investment in North Macedonia: Strategic Financing
This funding is channeled through the Green Finance Facility (GFF), a collaborative program backed by the EBRD, the United Nations Development Programme (UNDP), the Joint SDG Fund, and the Government of North Macedonia. The GFF was initially established with €30 million in 2023 and later expanded by an additional €10 million to meet strong market demand for green investments. The EBRD’s strategy includes partnerships with multiple local financial institutions, having also recently provided a separate €7 million loan to Sparkasse Bank AD Skopje under the same facility. These loans empower local banks to offer sub-loans for high-performance green technology, materials, and systems, directly supporting North Macedonia’s efforts to reduce its carbon footprint.
Addressing National Energy Challenges
North Macedonia is at a critical juncture in its energy policy, working to move away from a heavy reliance on coal-fired thermal power plants that currently dominate its electricity production. Despite having significant renewable potential, particularly in solar, the nation still imports approximately 30% of its gross energy consumption. This financial initiative directly supports the country’s ambitious Energy Development Strategy (2020-2040), which targets a complete phase-out of coal by 2027 and aims for renewables to supply 45% of total energy by 2040. This aligns with North Macedonia’s commitment, alongside other Western Balkan states under the Sofia Declaration, to achieve a carbon-neutral continent by 2050.
Thermal power plant.
A Surge in Renewable Energy Projects
The EBRD’s financing arrives amidst a surge of interest in renewable energy within North Macedonia. The country’s Regulatory Commission for Energy (RKE) issued a record number of energy licenses in 2022, followed by another 278 licenses in the first half of 2023 alone. If all these licensed projects are realized, they could add 270 MW of new capacity—a substantial figure for a market where the largest operational solar plant is 17 MW. Solar power is the clear frontrunner, accounting for 254 of the 267 new renewable power plants reported in development in 2022, poised to add over 99 MW of capacity. This growing momentum, fueled by strategic financing from institutions like the EBRD, is paving the way for a sustainable energy future in North Macedonia.
Sources
- EBRD, EU and Japan support energy-saving investments in North …
- Western Balkans GEFF III – ProCredit Bank Macedonia II (EBRD …
- Case study – North Macedonia – Just Transition Finance Lab
- EBRD Supports Green Finance Facility For SMEs In North Macedonia
- EBRD continues supporting energy-saving investments in North …
- EBRD, EU and Japan support energy saving investments in North …
- Green Finance Facility – North Macedonia | We invest in changing lives
- Green Loans Power North Macedonia’s Small Businesses Toward a …
- EBRD approves €4m loan for Sparkasse Bank AD Skopje
- EBRD boosts green transition in North Macedonia with €4M loan
