North Macedonia is planning its first utility-scale standalone battery at Bitola, with a capacity of 100 MW / 400 MWh and an estimated cost of EUR 98 million. The proposed financing mix combines merchant value with public and concessional support, reflecting the limits of relying on market revenues in the Western Balkans.
The proposed package includes the European Bank for Reconstruction and Development (EBRD), KfW, concessional climate finance and a Western Balkans Investment Framework (WBIF) grant. The project’s financing model recognises system value that may not be fully monetised in a merchant market.
Revenue assumptions taken from deeper EU markets may not reflect differences in balancing-market depth, liquidity, regulatory certainty and utility credit structures across Western Balkan countries. The region has attractive market volatility and growing renewable capacity, but its balancing markets are smaller and less liquid than those in mature EU markets.
In Albania, Fortis Energy’s project at Erseke has reached ready-to-build status. It combines 75 MWp of solar with a 40 MWh battery. The co-located storage can improve solar integration and shape output without requiring a standalone storage market to support the entire investment case.
Montenegro’s power utility EPCG is cooperating with PowerX on a target of roughly 500 MWh over three years. Separately, the government is pursuing a process for a strategic battery energy storage system (BESS) project.
Across the projects, the financing approach combines merchant value with public, utility or renewable-portfolio support. Lenders may require lower merchant leverage and more explicit credit enhancement than for comparable EU assets. Grants, sovereign guarantees, strong utility counterparties and cash flows from co-located renewables can help compensate for limited market depth as trading frameworks mature.
Western Balkan battery projects are expected to depend more heavily on blended finance, utility credit and renewable co-location than projects in mature EU markets. Their bankability therefore rests on both merchant revenues and the public, utility or portfolio support available to each investment.