The EU has released significant funding to support the energy transition in North Macedonia and the Western Balkans. This financial injection, announced by EU Commissioner for Enlargement Oliver Varhelyi, aims to finance crucial interconnection projects, improve energy efficiency, and encourage the use of renewable energy sources across the region.
Funding for the Balkans energy transition and Infrastructure
A significant portion of the EU’s financial support for North Macedonia will be directed towards strategic energy and infrastructure projects. The funds will primarily be used for ventures such as the gas interconnection with Greece, enhancing energy efficiency, and promoting the use of renewable energy sources like solar power. Developing a robust renewable energy sector involves a detailed manufacturing process for components like solar panels, which is a key area of investment. To support this green shift, France has also provided a €600,000 grant for technical assistance to modernize and digitalize the country’s electricity transmission grid, making it better equipped to handle the variability of renewables.
Beyond energy, the EU will support the construction of a railway line connecting Skopje and Pristina, as well as the modernization of the railway line between Belgrade and Niš. These infrastructure projects are part of the EU’s broader strategy to foster regional connectivity and economic growth.
In January 2024, North Macedonia is set to receive a financial package of EUR 100 million to assist with energy subsidies, Meta.mk reported. This package is designed to help the country transition to renewables. Furthermore, the EU has pledged an additional EUR 300 million to support the development of the gas interconnection between Greece and North Macedonia. Understanding the plant cost breakdown for such large-scale energy projects is essential for effective implementation.
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Strengthening Regional Partnerships for the Balkans energy transition
Commissioner Varhelyi highlighted the importance of regional partnerships in achieving these ambitious goals. He praised the partnership with North Macedonia and emphasized that the country is making significant progress in its integration with the EU. This progress is underscored by the ongoing reforms, which are crucial for North Macedonia’s eventual accession to the EU.
Prime Minister Dimitar Kovacevski also acknowledged the strong partnership between North Macedonia and the EU, expressing gratitude for the financial support. He noted that the new financial package will be used to subsidize electricity consumption for households and small businesses. This support will ensure that electricity prices remain stable and that some consumers will continue to receive free electricity, easing the economic burden of the energy transition on the public.
EU’s Commitment to the Western Balkans energy transition
The EU’s financial assistance to North Macedonia is part of a much broader strategy to support the entire Western Balkans region in its energy transition and economic development. This commitment is formalized under the EU Growth Plan for the Western Balkans 2024–2027, a comprehensive package worth approximately €6 billion in grants and loans designed to accelerate socio-economic integration.
Commissioner Varhelyi stated that the EU’s goal is to be the main partner in the energy transition for the Western Balkans and to assist the region in moving away from coal. This support extends beyond North Macedonia, with Montenegro receiving funds for highway construction to improve connectivity, and joint EU-EBRD initiatives launched in Bosnia and Herzegovina to improve financing for energy efficiency in homes and businesses. The European Investment Bank (EIB) is also prioritizing infrastructure financing in the region, focusing on energy networks that align with the EU Green Deal. This financial support is designed to help the Western Balkans on their journey toward EU membership, which Varhelyi described as a “shared commitment.”
The EU remains dedicated to supporting the Western Balkans in their transition toward a cleaner and more sustainable future. The financial assistance provided will play a crucial role in helping the region achieve its energy transition goals and move closer to full EU membership.
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