The Macedonian government has concluded a protocol with Slovenia's Turbo Institute, calling for the construction of 20 small hydro power plants. The Slovenian firm will invest over US$15M on the project.
Under the terms of the protocol, 70% of the investment value should be executed through the engagement of Macedonian firms. Turbo Institute will be responsible for engineering, construction, and maintainence of the plants for a period of 30 years. After the expiry of the 30-year concession term, the plants are to be handed over to the state without compensation.
The mini-plants will have a total power capacity of 20MW and will produce 300MkWh of electricity.
Studies have shown that Macedonia has enough hydro potential to support more than 400 small plants. Currently, annual production of electricity in Macedonia is 1.5BkWh. Most of this – 1.01 billion kWh – is supplied by two thermal power plants, and another 10 to 12% is provided from hydro energy.