Six hydropower plants in North Macedonia to be modernised with EU and German support
On 29 September 2026, North Macedonia's state-owned power utility ESM AD launched the third phase of its programme to rehabilitate the country's large hydropower plants. The phase, worth an estimated €46 million, will modernise six plants — Vrutok, Vrben, Raven, Tikvesh, Shpilje and Globochica — across the Mavrovo, Crn Drim and Tikvesh hydropower systems. Financing is provided through a €35 million loan from the German development bank KfW and a €11.1 million grant from the European Union provided through the Western Balkans Investment Framework (WBIF).
The works were launched at the opening of the art exhibition "Turning the Power of Water into Energy", at the Museum of the City of Skopje, attended by Prime Minister Hristijan Mickoski. The exhibition features photographs and video materials of the power plants from ESM's rich archive.
The project replaces outdated equipment at the six large hydropower plants, reducing operational outages, extending the service life of the facilities and increasing operational safety. This will ensure a reliable and secure delivery of electricity to the power system. It is expected to add 13.5 MW of installed hydropower capacity and 50 GWh of clean electricity generation a year, and to generate at least €5 million in additional annual revenue from increased output and system balancing services. The works are expected to run until the end of 2030.
Michalis Rokas, Ambassador of the European Union to North Macedonia, said: "North Macedonia has great hydropower potential, but harnessing it requires the modernisation of its facilities. The EU has contributed to the rehabilitation of six hydropower plants with a grant of €11.1 million. Through the Growth Plan, we will continue to provide financial and advisory support to the country's energy sector."
Lazo Uzunchev, Chairman of the Management Board and General Manager of ESM AD, said: "This major undertaking is a strong signal of the company's new era. The benefits of the modernisation are direct and measurable — we are extending the service life and increasing the installed capacity of the large hydropower plants by a further 13.5 megawatts, thereby securing new annual generation of 50 gigawatt-hours of clean electricity. The increased generation and the volume of system balancing services will bring us at least €5 million in additional annual revenue."
Petra Drexler, Ambassador of the Federal Republic of Germany, said: "Together with the European Union, Germany is supporting North Macedonia in building a sustainable and resilient energy system. The cooperation with KfW is directed towards the modernisation of key energy infrastructure, which is the foundation for domestic energy security and a significant contribution to our shared European climate ambitions."
The project forms part of the EU Energy Support Package for the Western Balkans, a €1 billion initiative under which WBIF has allocated €500 million for energy infrastructure modernisation and a sustainable energy transition across the region.
More details: https://wbif.eu/project-detail/PRJ-MKD-ENE-035
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About WBIF and Global Gateway
The Western Balkans Investment Framework (WBIF) contributes directly to Global Gateway, the EU's strategy to boost smart, clean and secure connections in digital, energy and transport, while strengthening health, education and research systems worldwide. Global Gateway aims to mobilise up to €300 billion worldwide in investments through a Team Europe approach, bringing together the EU, its Member States and financial institutions to leverage investments for a transformational impact.