The Green for Growth Fund (GGF) has made its first ever equity investment in wind farms by deciding to fund the construction and operations of a 36MW installation in Bogoslovec, North Macedonia. GGF’s €3.5 million investment will be joining BNB Kompani D.O.O., a holding company for energy projects in North Macedonia who is the majority shareholder.

The Bogoslovec project is directly aligned with GGF’s sustainable investment objectives, while simultaneously supporting the country’s broader climate transitions and renewable energy targets. The project will directly contribute to the implementation of North Macedonia’s Renewable Energy Action Plan, which aims to reach a 50% share of renewable energy in electricity production by 2024.

North Macedonia relies predominantly on coal and lignite. Although the appetite for renewable energy sources has grown in recent years, a transition to a more diversified renewable energy mix predominantly centres on hydroelectric power, which represents 37% of total installed capacity and 90% of renewable capacity.

Once complete, Bogoslovec will not only double the country’s existing wind capacity, but given it is the first independently owned wind farm in the country, it will also serve as a beacon for privately owned utility scale renewable energy. The project is expected to generate enough green electricity to supply over 20,000 households, resulting in 80,000 tons of avoided CO₂ emissions annually, with operations due to begin in mid-2023.

Background

GGF invests in measures designed to cut energy use and CO₂ emissions, and improve resource efficiency. It was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank.