North Macedonia is preparing a combined €119 million investment in battery storage and grid digitalisation. The package includes a proposed 100 MW/400 MWh battery in Bitola and upgrades to system control and cybersecurity. The European Bank for Reconstruction and Development is considering financing for both the storage and transmission components.
A larger element of the plan is a proposed standalone battery energy storage system in Bitola with a capacity of 100 MW/400 MWh. The total project cost is estimated at around €98 million. The investment also covers new SCADA, electricity trading, generation-planning and cybersecurity systems associated with the storage facility.
The European Bank for Reconstruction and Development (EBRD) is considering a loan of up to €33.1 million for the Bitola battery project. A separate programme for transmission system operator MEPSO would deliver a new central SCADA/EMS platform, cybersecurity infrastructure and a 400 kV transformer. Both projects are under review and have not yet reached financial close.
EBRD financing for storage and MEPSO network upgrades
The MEPSO programme is expected to receive approximately €18.6 million in EBRD financing. It would also include a €2.4 million grant from the Western Balkans Investment Framework (WBIF). The combined package is described as supporting flexibility and system-control capabilities as renewable generation increases.
North Macedonia’s power system remains heavily influenced by lignite generation, particularly around Bitola. The shift from coal-fired generation to wind and solar is described as requiring more than additional renewable capacity alone. Thermal plants provide dispatchable generation, balancing capability and system support, while wind and solar output varies with weather conditions.
A 400 MWh battery is cited as addressing part of the flexibility requirement by shifting electricity between different hours. The battery would be able to absorb electricity during periods of high renewable output and release it when demand increases or renewable generation falls. Storage value depends on whether the wider network can monitor conditions accurately and manage flexible resources efficiently.
SCADA, EMS, cybersecurity and grid reinforcement
The planned SCADA and EMS upgrades are intended to improve MEPSO’s ability to forecast generation, monitor network flows and coordinate system operations. Cybersecurity infrastructure would be introduced as generation, storage and grid functions become more digitally connected. The proposed 400 kV transformer is also intended to strengthen the physical transmission network supporting the transition.
The country has recently secured financing for the first phase of the large Štip wind project. That development adds another variable renewable asset to its pipeline alongside existing wind and solar expansion plans. As variable renewable capacity increases, requirements for balancing, forecasting and flexible electricity management are expected to grow.
Bitola is highlighted as a key location for the proposed battery due to its historical association with coal-fired power generation. The same area could develop into a centre for managing renewable electricity and system flexibility. A large battery at the site would support managing periods of high renewable production and responding rapidly to changes in supply and demand.
The battery project would not replace all services provided by thermal power plants, nor would it remove the need for reliable generation and transmission capacity. Its role is described as providing a different set of capabilities that become increasingly valuable as the generation mix changes. The combined €119 million investment package is presented as reflecting a transition toward building flexibility alongside grid digital infrastructure.