New EBRD investment in Macedonian renewable energy sector

By EBRD  Press Office
@ebrd

The EBRD is supporting private participation in the Macedonian power generation sector with its second €6 million loan to finance small hydro power plants.  The loan is provided to Macedonian PCC Hydro DOOEL Skopje, to finance the development of four small hydro power facilities. Distributed throughout the country, each on a different river, the power plants have a total capacity of 4.1 MW.

PCC’s generating facilities will be interconnected to the Macedonian distribution grid and the company will benefit from the preferential purchase agreements with the Macedonian Transmission System Operator and special tariff scheme for renewable energy projects. PCC is a renewable energy company owned by the German PCC DEG Renewables GmbH (a joint-venture between the German holding PCC SE and the DEG, member of KfW banking group).

This loan is the EBRD’s second private sector energy generation investment in FYR Macedonia and it is being financed through the Western Balkans Sustainable Energy Direct Funding Facility.  The financing is supported by a direct agreement signed with the FYR Macedonian Ministry of Economy.

The EBRD loan is complemented by technical assistance funds provided by the Western Balkans Fund, the EBRD Shareholder Special Fund and the Norwegian Government. Upon successful completion of the project, PCC Hydro DOOEL will be eligible to receive an incentive payment for the reduction of CO2 emissions. This incentive payment is provided by the Western Balkans Fund, the EBRD Shareholder Special Fund and the European Union.

“The EBRD is pleased to support second renewable private sector project with long-term financing.  This investment confirms the Bank’s continuing support for the Macedonian small hydro concession programme and demonstrates the commercial viability of small-scale renewable energy projects and will address the growing energy demand in FYR Macedonia”, said Elena Urumovska, Head of the EBRD Skopje Resident Office.

“This support represents a big step forward for PCC to realise our planned hydropower projects in FYR Macedonia. We are proud that the EBRD has chosen this project and is supporting PCC’s hydropower portfolio in Southeast Europe”, said Dirk Guerzenich, Managing Director of the German PCC DEG Renewables GmbH.

Since the beginning of its operations in FYR Macedonia, the EBRD has committed close to €550 million in over 60 projects in key sectors of country’s economy, mobilising addition investment worth more than €700 million.