North Macedonia is preparing a combined €119 million investment in battery storage and grid digitalisation. The package includes a proposed 100 MW/400 MWh battery energy storage system in Bitola and upgrades to transmission system control and cybersecurity. The European Bank for Reconstruction and Development (EBRD) is considering financing for both components, which remain under review.
The main element is a standalone battery energy storage project in Bitola with a proposed capacity of 100 MW/400 MWh and an estimated total cost of around €98 million. The scope also covers new SCADA, electricity trading, generation-planning and cybersecurity systems linked to the storage asset. EBRD is considering a loan of up to €33.1 million for this battery-related package.
A separate programme for transmission system operator MEPSO would introduce a new central SCADA/EMS platform, cybersecurity infrastructure and a 400 kV transformer. The MEPSO project is expected to receive approximately €18.6 million in EBRD financing and a €2.4 million grant from the Western Balkans Investment Framework (WBIF). Both projects have not yet reached financial close.
Battery storage and grid control for higher renewable output
North Macedonia’s power system remains heavily influenced by lignite generation, particularly around Bitola. Adding wind and solar capacity requires more than expanding variable renewable generation because output depends on weather conditions. Thermal power plants provide dispatchable generation, balancing capability and system support.
A 400 MWh battery is described as one way to address part of the flexibility requirement by shifting electricity between hours and providing rapid-response balancing services. The storage unit could absorb electricity during periods of high renewable output and release it when demand increases or renewable generation falls. The source also links the operational value of storage to the ability of the wider network to monitor conditions and manage flexible resources.
The planned SCADA and EMS upgrades for MEPSO are intended to improve forecasting of generation, monitoring of network flows and coordination of system operations. Cybersecurity infrastructure is included because more generation, storage and grid functions are expected to become digitally connected. The proposed 400 kV transformer would strengthen the physical transmission network supporting the transition.
Bitola as a potential flexibility location alongside new wind capacity
The Bitola battery is positioned as significant due to its location in an area historically associated with coal-fired power generation. The same site could be used for managing renewable electricity and system flexibility as the generation mix changes. A large battery at the location is described as supporting management of periods of high renewable production and rapid response to changes in supply and demand.
The project scope is described as not replacing all services provided by thermal power plants, nor eliminating the need for reliable generation and transmission capacity. Instead, it would provide a different set of capabilities that become more valuable as variable renewables increase. North Macedonia has also secured financing for the first phase of the large Štip wind project, adding another variable renewable asset to its pipeline.
As wind and solar capacity increases, the need for balancing, forecasting and flexible electricity management would also grow. The combined investment package is presented as addressing both physical flexibility through storage and information, control and operational capabilities through digital systems. It is framed as part of a broader shift in how North Macedonia’s power system would operate with a larger share of variable renewable energy.