The European Bank for Reconstruction and Development (“EBRD”) and the World Bank are among the international financial institutions spearheading a 3-billion-euro plan to wean North Macedonia off its reliance on coal. The “Just Energy Transition Investment Program” (JET-P) plan follows the footsteps of several other countries in efforts to retire coal power plants, with the joint support of the government, as well as public lenders and private investors.
The plan, which is expected to be officially unveiled at the COP28 climate conference starting on 30 November in Dubai, outlines a roadmap to close North Macedonia’s two coal power plants, REK Bitola and REK Oslomej. The coal power plants will be replaced with 1.7 GW of renewable energy, a substantial step toward a greener and more sustainable energy landscape.
In 2021 North Macedonia joined the Powering Past Coal Alliance, pledging to become the first coal-free country in the Western Balkans. Initially set for completion by 2027, the deadline has been extended to 2030. The re-opening of the REK Oslomej power plant in 2021 slowed down the process, as a result of the country’s struggles to reduce electricity imports.
Additionally, a spokesperson for the Climate Investment Funds (“CIF”) confirmed that North Macedonia is being considered for concessional finance of up to 85 million dollars. The investment proposal should undergo approval by the CIF governing body at the beginning of next year.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
By Veton Qoku and Ljupka Noveska Andonova, Partners, Karanovic & Partners