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 in Bitola and upgrades to system control and cybersecurity. The European Bank for Reconstruction and Development (EBRD) is considering financing for both the storage and transmission components.
The largest element is a standalone battery energy storage system in Bitola with a capacity of 100 MW/400 MWh. The project cost is estimated at around €98 million. The investment package would also add new SCADA, electricity trading, generation-planning and cybersecurity systems to support flexibility and digital management around the storage asset.
The EBRD is considering a loan of up to €33.1 million for the battery project, which remains under review and has not reached financial close. In parallel, transmission system operator MEPSO is preparing a separate €21 million programme. That programme would introduce a new central SCADA/EMS platform, cybersecurity infrastructure and a 400 kV transformer.
The MEPSO programme 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 are still under review, with no financial close reported. The combined scope links storage deployment with grid control, monitoring and security upgrades.
Storage and grid upgrades for higher renewable shares
North Macedonia’s power system remains heavily influenced by lignite generation, particularly around Bitola. Moving from coal-fired generation toward wind and solar requires more than adding variable renewable capacity. Thermal plants provide dispatchable output, balancing capability and system support, while solar and wind generation vary with weather conditions.
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. It could absorb electricity during periods of high renewable output and release it when demand rises or renewable generation falls. Storage value depends on the ability of the wider network to monitor conditions and manage flexible resources efficiently.
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 also included as more generation, storage and grid functions become digitally connected. The proposed 400 kV transformer would strengthen the physical network supporting the transition.
The investment package therefore covers both operational flexibility through storage and the information and control capabilities required to use that flexibility. This alignment is presented as increasingly relevant as North Macedonia expands its renewable generation portfolio. The country has secured financing for the first phase of the large Štip wind project, adding another variable renewable asset to its development pipeline.
As additional wind and solar capacity comes online, requirements for balancing, forecasting and flexible electricity management are expected to increase. Bitola is highlighted as a key location because it has historically been associated with coal-fired power generation. The same area could develop into a centre for managing renewable electricity and system flexibility.
A large battery at the site could help manage periods of high renewable production and enable rapid response to changes in supply and demand. The project is not described as replacing all services provided by thermal power plants, nor as eliminating the need for reliable generation and transmission capacity. Instead, it would provide a different set of capabilities that become more valuable as the generation mix changes.
The overall €119 million package is positioned around a transition from replacing ageing coal capacity toward operating reliably with a larger share of variable renewable energy. The requirements cited include batteries, stronger transmission infrastructure, advanced system controls, accurate forecasting and improved cybersecurity developed alongside new wind and solar projects. For North Macedonia, the focus is on building flexibility and digital infrastructure so the power system can operate without relying on coal for equivalent services.