ESM secures EUR 1.5 million grant to accelerate North Macedonia’s energy transition

North Macedonia’s power utility Elektrani na Severna Makedonija has secured a EUR 1.5 million grant to strengthen its capacity and accelerate the energy transition.

Elektrani na Severna Makedonija (ESM) made a major step toward a market-driven green transformation with a grant implementing agreement with Germany’s KfW Development Bank.

The agreement formalizes a EUR 1.5 million technical assistance grant to boost the state-owned utility’s corporate and green transition processes.

The support will strengthen ESM’s institutional and commercial capacities, enable further investments in renewable energy, and prepare the company for integration into the European energy market, according to a social media post by Steffen Hudolin, Head of Cooperation at the European Union’s Delegation to North Macedonia.

Uzunčev: The grant represents a strategic cornerstone for the company’s institutional transformation

The grant is part of a wider EUR 13 million EU programme supporting the market-oriented green transformation of state-owned energy utilities across the Western Balkans and Eastern Neighbourhood, the post reads.

Lazo Uzunčev, EMS General Manager, said that the grant represents a strategic cornerstone for the company’s institutional transformation to a comprehensive, green, and market-oriented enterprise.

For ESM, it is a profound commitment to becoming a modern and commercially competitive force within the European energy market, he underlined.

“The funding will be instrumental in bolstering our internal capacities and corporate governance through the financing of critical modeling and strategic planning initiatives,” Uzunčev asserted.

​Hudolin: Accelerating the green transition has never been so close and so possible

According to Steffen Hudolin, accelerating the green transition has never been so close and so possible.

“With the support of the EU and the European Fund for Sustainable Development Plus (EFSD+) guarantees, the country will receive financial means and technical guidance by our partners in KfW to accelerate the transformation and decarbonisation of the energy sector,” he stated.

Pablo Obrador Alvarez, KfW Head of Division Energy and Transport for Southeast Europe and Türkiye, said the energy transition requires fit energy utilities able to cope with challenging conditions.

“With this project, KfW will support ESM’s transformation that will position and help them improve their performance and market readiness,” he added.