North Macedonia is preparing to convert part of its largest coal and power complex into the site of its largest solar development. The 134 MWdc Bitola 3 photovoltaic plant is planned as a project on an exhausted section of the lignite mine that supplies the Bitola thermal power station. The initiative is being developed by state-owned electricity producer Elektrani na Severna Makedonija (ESM).
ESM will develop Bitola 3 on land associated with the lignite operation supplying the Bitola thermal power station. The project is estimated to cost €87 million. Financing is structured through a sovereign-guaranteed loan of up to €37 million from the EBRD, alongside €50 million from Germany’s KfW Development Bank.
Planned generation and expected emissions reductions
The EBRD has said the Bitola 3 plant will generate approximately 176 GWh of electricity annually. The same announcement projected avoidance of around 131,000 tonnes of CO₂ each year. A later financing announcement revised the avoided-emissions figure to approximately 134,000 tonnes, based on updated assumptions.
The two avoided-emissions estimates are intended to reflect different calculation assumptions for a system that remains heavily dependent on coal and electricity imports. With solar output tied to daylight hours and seasonal conditions, the plant’s contribution is expected to be limited to periods when generation is available. This means additional measures are required to maintain system reliability during periods when solar output declines.
Grid flexibility needs alongside solar deployment
The project also points to the use of former mines and thermal power sites for renewable energy development. Such sites can offer existing grid infrastructure, industrial land, road connections, and an experienced energy-sector workforce. Reusing already disturbed land can reduce pressure on agricultural and environmentally sensitive areas.
Continued investment around established energy complexes is also part of the approach described for managing impacts associated with coal phase-out. However, solar generation cannot independently deliver all system services provided by thermal power plants. North Macedonia is therefore expected to require flexible generation, energy storage, stronger interconnections, and improved demand management if it is to replace dispatchable lignite without increasing reliance on electricity imports during winter evenings.
Workforce transition within the Just Energy Transition framework
The social dimension is linked to employment and economic activity in Bitola, which is described as a major centre for jobs and business activity. The Bitola 3 project is included in North Macedonia’s Just Energy Transition Investment Platform. Its performance is expected to be assessed not only through installed capacity and emissions reductions but also through retraining opportunities, local procurement, and sustainable job creation.
Solar construction can create significant employment during the development phase, while long-term operations require far fewer workers than a mine and thermal power plant. The project description highlights that without early workforce planning, the physical transition could progress faster than the social transition. This workforce planning requirement is presented as part of ensuring continuity in employment outcomes as generation assets change.
Role of development banks in Southeast Europe renewables
Bitola 3 is also presented as an example for Southeast Europe’s wider energy market of development banks enabling large renewable projects in smaller and higher-risk markets. Blended financing can reduce the cost of capital and support state-owned utilities in undertaking projects that may be difficult under purely commercial terms. Public financing is described as supporting assets that deliver multiple benefits simultaneously.
The benefits referenced include lower emissions, greater energy security, and productive reuse of coal-related infrastructure associated with existing sites. While Bitola 3 is not described as determining North Macedonia’s energy future on its own, its long-term value depends on whether the 134 MWdc solar capacity is accompanied by grid investment, flexibility measures, and workforce transition planning needed to reshape the former coal complex into a durable new energy hub.
