The European Bank for Reconstruction and Development (EBRD) is providing EUR6m loan to Mali Hidro Elektrani (MHE), a renewable energy company, to develop seven small hydro power plants with a total generation capacity of up to 5.83MW in Macedonia.
These hydro power plants, which will be located on seven different rivers throughout the country, will produce on average about 21,630MWh of electricity per year and will reduce CO2 emissions by 14,000 tonnes each year.
These power plants, which will qualify for special tariff scheme for renewable energy projects, will be interconnected to the Macedonian distribution grid and MHE will benefit from the preferential purchase agreements with the Macedonian Transmission System Operator.
EBRD’s investment in this project, which is complemented by technical assistance funds provided by the Western Balkans Fund, the EBRD Shareholders Special Fund and the Norwegian government, is financed through the Western Balkans Sustainable Energy Direct Funding Facility.
Upon completion, the project will allow MHE to get an incentive payment from the Western Balkans Fund, the EBRD Shareholders Special Fund and the EU for reducing the CO2 emissions of the Macedonian power sector.