North Macedonia is putting EUR 46 million into the rehabilitation of six major hydropower plants, with financing from Germany’s KfW development bank and the European Union.
The investment will modernise ageing equipment across the Mavrovo, Crn Drim and Tikvesh hydropower systems, with the aim of improving plant reliability, extending the operating life of existing assets and increasing electricity output.
On 29 September 2026, North Macedonia’s state-owned power utility ESM launched the third phase of its hydropower rehabilitation programme.
The EUR 46 million investment covers six plants: Vrutok, Vrben, Raven, Tikvesh, Shpilje and Globochica. The financing includes a EUR 35 million loan from KfW and an EUR 11.1 million EU grant through the Western Balkans Investment Framework (WBIF).
The programme is expected to be completed by the end of 2030.
The work will focus on replacing outdated equipment and improving the operational performance of the plants.
For North Macedonia, this means reducing unplanned outages, improving operational safety and extending the service life of existing hydropower infrastructure rather than relying only on new generation projects.
The rehabilitation is expected to add 13.5 MW of installed capacity and increase annual electricity production by around 50 GWh.
The upgraded plants are also expected to generate at least EUR 5 million in additional annual revenue through higher electricity production and system balancing services.
This is an important part of the investment. The value of hydropower is not limited to the electricity it generates. Modernised plants can also provide greater flexibility to the power system as the share of variable renewable generation increases.
The project forms part of the EU Energy Support Package for the Western Balkans, a EUR 1 billion initiative supporting energy infrastructure across the region.
Under the programme, the Western Balkans Investment Framework has allocated EUR 500 million to energy infrastructure modernisation.
North Macedonia’s hydropower rehabilitation therefore sits within a wider regional push to upgrade existing energy assets and improve the performance of power systems across the Western Balkans.
North Macedonia’s project reflects a wider shift across the region: energy investment is moving beyond new generation to upgrading the infrastructure already in place.
For hydropower operators and engineering companies, this means growing demand for turbine and generator rehabilitation, automation, electrical systems, control equipment and plant-life extension.
The focus on system balancing also matters. As solar and wind capacity grows, the Balkans will need more flexible generation to manage changes in supply and demand. Modernised hydropower can provide that flexibility while extending the value of existing assets.
For companies across hydropower, grid infrastructure, automation and energy services, the opportunity is clear: the region is not only building its next energy system, it is investing in making the existing one work better.
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