From coal pit to solar plant
From coal pit to solar plant
Recognizing the need for energy independence, the Western Balkans are prioritizing projects that support the green-energy transition. But financing is essential to help countries shift to domestic and clean renewable power.
We arranged EUR 25.7 million in project financing for a 50 MW solar power generation project on the site of the former Oslomej coal-mine in Kičevo, North Macedonia.
We worked alongside our partners, ESM, a public electricity generation utility owned by the Government of North Macedonia, and Renalfa IPP, a Vienna-based renewables developer.
Purpose of the project
Renewable energy is a priority in the Western Balkans
The region’s reliance on legacy coal-fired power plants has resulted in outages, shortfalls, closures and volatile energy costs. Governments recognise this and are increasingly prioritizing sustainable power projects aimed at reducing fossil fuel imports, lowering costs and stabilizing energy supply. To fulfil this ambitious agenda, they need support.
Use of proceeds
100% of our loan is being used for the construction and operation of the 50 MW solar power generation project.
The plant will be built on degraded land once used for coal mining. We are also providing reskilling opportunities for former mine employees. The Oslomej site has been identified as one of 17 priority projects endorsed by the Western Balkans Investment Framework.
Oslomej is GGF’s second project finance transaction in North Macedonia, following our investment as a minority shareholder in the 36 MW Bogoslovec wind farm in 2021.
“Our investment in the Oslomej solar project underscores our commitment to North Macedonia’s green energy transition. By reducing reliance on fossil fuels and enhancing energy security, this project aligns with our mission to mitigate climate change and promote sustainable energy solutions.”
Borislav Kostadinov, Fund Director
Impact of the project
This project bolsters wind and solar capacity, reducing the grid’s dependency on lignite and imported electricity. It also diversifies North Macedonia’s energy mix, which will boost the country’s energy security and resilience.
We are helping the mine’s former workforce by creating local jobs and helping them reskill. This will also help address the growing demand for skilled labour in renewables.
Support beyond the investment
GGF complements its financing with advisory and capacity building services, and risk-management support. This includes environmental and social due diligence, as well as monitoring, to keep the project aligned with international best practice.
About the company and our partners
About the company and our partners
Project company: Oslomej is registered in North Macedonia to construct, operate and maintain the project.
EPC and O&M provider: Renalfa IPP GmbH is a Vienna-based renewables developer jointly owned by Renalfa Solarpro (70%) and RGreen Invest (30%).
Public Partner and Counterparty: JSC Elektrani na Severna Makedonija (“ESM”) is a public electricity generation utility, fully owned by the Government of North Macedonia.