Skopje, 6 February 2024 (MIA) – During the energy crisis Power Plants of North Macedonia (ESM) had difficulties supplying the country with electricity and used up the funds that would have been used to invest in new energy capacities. EUR 400 million were spent to that end, which is the reason why strategic investors are being sought to invest in the energy production capacities in the country, said Deputy Prime Minister in charge of economic affairs, Fatmir Bytyqi, at a media briefing Tuesday.

According to Bytyqi, negotiations have been completed with four potential investors in the field of energy. Parliament is set to discuss legislation granting them the status of strategic investors at a session Wednesday. All four potential strategic investors, said Bytyqi, have already delivered a bank guarantee, and will invest a total of EUR 786 million according to the delivered business plans.

“With their realization, the country will acquire energy independence due to the long-term predictability of prices at which electricity will be bought in line with the contracts for the realization of investments. According to the agreement, the entire electricity produced by the Stipion photovoltaic power station with an installed capacity of 400 megawatts and a planned investment of EUR 270 million, will be bought out by ESM at a guaranteed price of EUR 56 per MWh,” said Bytyqi.

The Deputy PM also spoke about a planned investment of EUR 290 million by Mytilineos to construct a gas cogeneration power plant. He said a formula has been agreed for the calculation of the price of electricity to be bought out in the coming 20 years, which, he said, would be at least 5 percent lower than the market price. The power plant is expected to have a capacity of 165 megawatts and an annual production of 1100 MWh of electricity. In addition, the heating energy produced by the plant will be sold to the state at a price 40 percent lower than the market price. After realizing the investment, the investor will receive EUR 50 million in state aid over five years.

Once the lease on the land expires, Bytyqi said the strategic investors would have to sell the buildings to the state at a price of EUR 1 per square meter.

The Deputy PM said the country is expecting an end to the energy crisis which, he said, is why ESM has launched initiatives for its own investments. A memorandum has already been signed with U.S. company “General Electric” for the construction of a gas power plant in TEC Negotino with an installed capacity of 800 megawatts and an additional 300 megawatts in REK Bitola.

On Monday, the Association of Engineers of the Republic of Macedonia came out with a reaction and urged the MPs not to support the legislation related to the strategic energy investments at Wednesday’s session, assessing them as harmful and a violation of the country’s energy sovereignty. The Association claimed that the projects can be realized independently by the country with fewer risks and a more economic approach.

Photo: MIA