North Macedonia is planning a 100 MW / 400 MWh standalone battery at Bitola, estimated to cost 98 million euros. Its proposed financing combines public and concessional support. The project reflects a broader Western Balkan approach, where less-liquid, smaller balancing markets make merchant-only financing less dependable than in mature EU markets.
Financing and regional market conditions
The proposed funding package for Bitola includes the European Bank for Reconstruction and Development (EBRD), KfW, concessional climate finance and a Western Balkans Investment Framework (WBIF) grant. The project’s financing approach recognises system value that may not be fully monetised in a merchant market.
Western Balkan markets have attractive price volatility and growing renewable capacity, but their balancing markets are smaller and less liquid than those in mature EU markets. Revenue assumptions carried over from deeper EU markets do not account for regional differences in market depth, liquidity, regulatory certainty and utility credit structures.
Storage projects across the Western Balkans
In Albania, Fortis Energy’s co-located project at Erseke has reached ready-to-build status. It pairs 75 MWp of solar with a 40 MWh battery. The battery can support solar integration and shape output without requiring a standalone storage market to underpin the entire investment case.
In Montenegro, power utility EPCG is working with PowerX towards a target of roughly 500 MWh over three years. Separately, the government is pursuing a process for a strategic battery storage project (BESS). Across these projects, the bankability bridge combines merchant value with public, utility or renewable-portfolio support.
Bankability and project support
Lenders may require lower merchant leverage and more explicit credit enhancement than for comparable EU assets. Grants, sovereign guarantees, strong utility counterparties and co-located renewable cash flows can help compensate for limited market depth as trading frameworks mature. Bankability in the region is expected to depend more heavily on blended finance, utility credit and renewable co-location than in mature EU markets, so project financing structures will need to address both market revenues and the additional support available to each investment.