North Macedonia’s state-owned power utility ESM and the World Bank have signed a $2.4 million grant agreement to support preparatory activities for the planned TPP Bitola cogeneration plant. The grant is intended to cover early-stage project development work. This includes the selection of consultants and the preparation of detailed technical documentation required for implementation.
Preparatory funding and technical documentation
The financing will be used to advance the project through initial development steps before construction-related procurement. Under the agreement, ESM will commission work that supports implementation planning, including technical documentation. A feasibility study is also planned as part of the preparatory phase.
The feasibility study is expected to provide the basis for a future international tender. That tender would cover the design and construction of the cogeneration facility. The scope links the grant-supported preparation directly to later contracting steps.
Planned location and role in heat and power supply
The proposed cogeneration plant is expected to be built near the existing TPP Bitola complex, which is described as one of North Macedonia’s key thermal power generation sites. ESM states that the facility will operate as a combined heat and power (cogeneration) plant. It is expected to produce both electricity and useful thermal energy.
Beyond power generation, the plant is expected to supply district heating to Bitola and surrounding communities. ESM said this is aimed at improving local energy efficiency and security of supply. The project value is reported at more than €200 million, positioning it among the larger planned energy infrastructure investments in North Macedonia.
Fit within ESM’s energy sector modernization program
The initiative forms part of ESM’s broader energy sector modernization program. The program focuses on upgrading infrastructure and improving flexibility and efficiency across North Macedonia’s power system. The preparatory work supported by the World Bank grant is aligned with these modernization objectives.
