North Macedonia’s energy transition program, called Just Energy Transition Partnership (JET-P), is gaining the support of international lenders including the European Bank for Reconstruction and Development (EBRD) and the World Bank (WB). The energy transition program is estimated at €3 billion.
The COP28 climate change conference in Dubai is expected to adopt a program that envisages the closure of two coal-fired power plants in North Macedonia. . These coal-fired power plants are expected to be replaced by power plants from renewable sources of energy, which will provide a capacity of 1.7 GW. The final adopted program will be in line with global efforts to combat climate change with the joint support of governments, lenders and private investors.
Corespondingly last year’s COP27 established a coalition of countries that announced a $20 billion JET-P transition plan to help Indonesia shut down coal-fired power plants. A year earlier South Africa received similar aid totaling $8.5 billion.
North Macedonia produces 40% of its electricity from coal-fired power plants, and as a result, the level of pollution is very high. The capital city of Skopje was declared the most polluted city in Europe by the United Nations in 2018. The main thermal power plant REK Bitola produces as much as 70% of all electricity in the country, which is why it is also the focus of the energy transition program. For years, North Macedonia has been striving to abandon the use of coal. Nevertheless, in 2021 it restarted the thermal power plant REK Oslomej in order to reduce the import of electricity. Both mentioned coal-fired power plants are outdated and operate on lignite, which pollutes the environment the most.
The cost of North Macedonia’s energy transition is estimated at €1,500 per capita in the country of two million. The main obstacle to the implementation of the energy transition in this small country with low incomes is cost-related. As already mentioned, North Macedonia shows an interest in transitioning to cleaner energy, especially by joining the Powering Past Coal Alliance (a group of countries that are trying to abandon coal as an energy source). Following the government’s original goal of a complete transition to clean energy sources by 2027, this date was pushed back to 2030 last January. At the same time, the war in Ukraine has also raised concerns about energy security in North Macedonia, which plans to open two new coal mines. This action is not an exception, as EU countries have also taken similar measures due to the unpredictable international environment.
