North Macedonia has approved a renewable and storage pipeline that totals about 4.4 GW, while the country’s existing power system is described as much smaller. The shift in investment risk is linked to grid integration rather than permitting. The scale of projects is reflected in the country’s recent solar build-out and forward construction plans.
In 2025, North Macedonia installed around 210 MW of solar capacity, bringing cumulative photovoltaic capacity to above 1 GW. For 2026, its energy-construction plan includes 59 solar projects with a combined total of more than 3 GW. The previous year’s plan covered only 1.2 GW, including 812 MW of solar.
Solar pipeline growth and connection constraints
The acceleration in approvals indicates investor interest, but only part of the pipeline can be connected without major network reinforcement. If development proceeds without coordination, curtailment could rise. That would affect solar capture prices and widen the gap between nominally approved capacity and projects that can be financed and delivered.
The portion of the pipeline that can proceed depends on whether projects can demonstrate firm connection timelines, dispatch value, and financing structures that remain resilient to grid delays. This focus applies across the broader mix of utility-scale generation and storage being planned.
Čebren pumped-storage hydropower as balancing option
The proposed Čebren pumped-storage hydropower plant is described as North Macedonia’s most strategically significant balancing project. After repeated failed concession attempts, the government is considering state-led implementation. The total investment is estimated at approximately €1.5 billion, including financing costs.
Government calculations indicate an internal rate of return above 10%. The project is positioned to provide seasonal storage, peak generation, renewable balancing, and water-management benefits. At the same time, its scale creates exposure related to construction execution, hydrology, environmental impacts, and sovereign financing.
The project would require a robust geotechnical baseline and disciplined procurement. It also calls for clear allocation of interface risks between civil works, electromechanical equipment, and transmission infrastructure.
REK Bitola district-heating expansion and cogeneration studies
At REK Bitola, state utility ESM has secured a $2.4 million World Bank grant for preparatory work on a cogeneration plant and expansion of the district-heating system. The studies are intended to evaluate a transition away from existing coal-based generation. They will assess technology capable of using natural gas and potentially hydrogen.
The overall planning approach combines utility-scale solar with pumped storage and thermal conversion initiatives. In this context, the credible investment pipeline is defined as the subset able to secure firm connection dates and withstand grid-related timing risks.
