Sustainable infrastructure fund Alcazar Energy Partners has launched the 400MW Shtip wind farm in North Macedonia with an investment of more than $500m.

The onshore wind facility will be developed 75km south of Skopje. It is expected to generate sufficient renewable energy to meet the power requirements of more than 100,000 households every year.

The Shtip wind project is expected to mitigate the release of over 670,000 tonnes of carbon dioxide equivalent annually.

Alcazar Energy Partners aims to achieve the financial close for the wind farm by Q4 2025. Following this, construction of the facility is likely to begin in early 2026.

Once fully operational, the Shtip project is anticipated to increase North Macedonia’s installed wind capacity by nearly five times.

Alcazar Energy Partners said that the proposed onshore wind facility will become one of the largest renewable energy platforms in the Western Balkans.

The Shtip project will also contribute towards advancing North Macedonia’s Just Transition Investment Platform, which was announced at COP28.

Besides, the onshore wind project is estimated to generate more than 630 construction jobs.

North Macedonia Prime Minister Hristijan Mickoski said: “The wind farm in south-eastern Macedonia will increase the potential of Macedonia in the area of renewable energy resources by five times.

“The area where the wind farm is to be built is located between three municipalities, Karbinci, Radovish and Shtip, where the potential for this type of investment is great.”

According to Alcazar Energy Partners, the new investment will benefit the energy mix in North Macedonia as well as significantly contribute to the energy security of the wider Western Balkans region.

The Shtip project will also reduce energy shortages and support the transition to renewable energy in the Western Balkans and Southeast Europe. This will be achieved by leveraging North Macedonia’s grid connections with Greece, Bulgaria, Serbia, and Kosovo.

The project marks the infrastructure fund’s second milestone in its bid to develop the largest renewable energy platform in the Western Balkans. The estimated total regional investment for this is around $1bn.

Alcazar Energy Partners co-founder and managing partner Daniel Calderon said: “We are thrilled to launch a major wind farm project in the Western Balkans, providing North Macedonia with clean, affordable electricity and creating local jobs.

“Alcazar Energy sees North Macedonia as a promising investment location for renewable energy. We look forward to collaborating with the government and stakeholders to build the country’s largest wind farm, significantly increasing its wind capacity.”