The financing will also be used for the introduction of grid efficiency enhancements to the infrastructure of MEPSO, the electricity transmission system operator of Macedonia.
The project is part of the European Commission’s initiative to establish an East-West power transmission corridor between Bulgaria, Macedonia, Albania, Montenegro and Italy.
It is also part of the connectivity agenda for the Western Balkans with funding provided from the Instrument for Pre-Accession (IPA) via the Western Balkan Investment Framework (WBIF).
The European Bank for Reconstruction and Development (EBRD) is providing a €37m loan to the project.
MEPSO will deploy grid efficiency components for the energy efficient electricity transmission.
EBRD president Suma Chakrabarti said: "This project signifies an important step towards establishing a regional electricity market."
"We are pleased to have a generous contribution from the EU in this very important project."
European Commission director general of enlargement Christian Danielsson said: "This project is part of the European Commission’s efforts to support the Western Balkans connectivity agenda.
"Building this transmission line will improve the security of supply and the stability of the two countries’ power systems."
The project will help in the development of a regional electricity market in which production and transmission capacity can be managed across the Western Balkans, instead of national basis, resulting in the reduction of waste and excess capacity.
Image: East-West electricity transmission corridor aims to connect electricity markets of Bulgaria, FYR Macedonia, Albania, Montenegro and Italy. Photo: courtesy of the European Bank for Reconstruction and Development.
