The European Bank for Reconstruction and Development (EBRD) supports energy security in North Macedonia by lending €100 million to the country’s public electricity utility JSC Elektrani na Severna Makedonija (ESM). The EBRD’s emergency liquidity loan will help ESM to maintain its financial resilience and continue to provide its essential services. The loan proceeds will be used to finance ESM’s electricity imports and working capital needs.

Heavily dependent on energy imports, North Macedonia has suffered from rocketing energy prices, feeding into high inflation. As a consequence, the state-owned ESM has been facing a large liquidity gap. The EBRD’s loan helps to address ESM’s liquidity needs, reducing its reliance on additional government support, and enables the company’s financial turnaround to support its capital investment plan.

The project comes at a critical time in the Macedonian energy transition. The country has committed to reducing its net greenhouse gas emissions by 82 per cent by 2030, primarily by decommissioning its coal-powered thermal power plants and coal-related operations. ESM, which provides approximately 90 per cent of the country’s domestic electricity generation, is a key player in this transition.

As part of the investment, ESM will implement a robust decarbonisation strategy aligned with the Macedonian National Energy and Climate Plan (NECP), targeting clear decarbonisation commitments.

The EBRD has invested more than €2.5 billion in 175 projects in North Macedonia.