EBRD and IFC Consider Loan for North Macedonia wind farm
North Macedonia’s push towards renewable energy is set to receive a major boost, as two leading international financial institutions are considering significant funding for a new wind farm. The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have expressed willingness to provide long-term loans for the initial phase of the Å tip wind farm project, developed by Alcazar Energy Partners.
This development marks a crucial step forward for one of the region’s most ambitious wind energy projects.
Project Scope and Capacity of the North Macedonia wind farm
The loan consideration is focused on the first phase of the Å tip project, which will have a capacity of 131 MW. This initial stage is part of a much larger 396 MW facility being developed through special purpose vehicles named STP Wind, Karb Wind, and Rado Wind.
The first phase alone is expected to feature 21 wind turbines, with commissioning slated for early 2028. Once operational, this phase is projected to generate an annual net output of 321 GWh of clean electricity. Upon full completion of all phases by 2029, the entire wind farm is anticipated to produce over 860 GWh annually, significantly increasing North Macedonia’s renewable energy production.
A Closer Look at the Financials of the North Macedonia wind farm
The scale of the project is reflected in its substantial cost. The total estimated investment for the Å tip wind farm is EUR 450 million. To finance this, developers are seeking a long-term debt package of EUR 320 million.
The potential involvement of the EBRD and IFC is critical to securing this financing:
- International Finance Corporation (IFC): The IFC is evaluating an “A loan” of up to EUR 150 million from its own account. Additionally, it aims to mobilize up to EUR 50 million in senior loans and VAT facilities from commercial banks.
- European Bank for Reconstruction and Development (EBRD): The EBRD is exploring the possibility of providing a non-recourse senior loan specifically for the STP Wind vehicle.
Project Momentum for the North Macedonia wind farm
According to reports from Balkan Green Energy News, Alcazar Energy Partners is making steady progress. The company has already selected a turbine supplier and is in the process of finalizing key contracts for the balance-of-plant works, as well as for ongoing operations and maintenance.
This potential investment from the EBRD and IFC underscores the growing confidence in the Balkan region’s green energy sector. If approved, the financing will not only accelerate North Macedonia’s transition away from fossil fuels but also serve as a powerful signal to other investors looking at renewable energy opportunities in Southeast Europe.
