North Macedonia is planning its first utility-scale standalone battery, a 100 MW / 400 MWh project at Bitola estimated to cost EUR 98 million. Its proposed financing approach combines merchant value with public and concessional support, reflecting the region’s less-liquid balancing markets.
The proposed funding mix includes the European Bank for Reconstruction and Development (EBRD), KfW, concessional climate finance and a Western Balkans Investment Framework (WBIF) grant. The model recognises system value that may not be fully monetised through merchant revenues alone.
Western Balkan markets have attractive price volatility and growing renewable capacity, but their balancing markets are smaller and less liquid than those in mature EU markets. Revenue assumptions copied from deeper markets do not reflect differences in market depth, liquidity, regulatory certainty and utility credit structures across the region.
In Albania, Fortis Energy’s co-located project at Erseke has reached ready-to-build status. It combines 75 MWp of solar and a 40 MWh battery, which can improve solar integration and shape output without relying on a standalone storage market to support the full investment case.
Montenegro’s power utility EPCG is cooperating with PowerX on a target of roughly 500 MWh over three years. Separately, the government is pursuing a process for a strategic battery energy storage system (BESS) project.
Across the projects, bankability depends on combining merchant value with public, utility or renewable-portfolio support. Lenders may require lower merchant leverage and more explicit credit enhancement than for comparable EU assets. Grants, sovereign guarantees, strong utility counterparties and co-located renewable cash flows can help compensate for limited market depth as trading frameworks mature.
Western Balkan battery projects are expected to rely more heavily on blended finance, utility credit and renewable co-location than projects in mature EU markets. These sources of support can complement market revenues where balancing-market liquidity and utility credit structures differ between countries.
