Coal pits to solar plants
Coal pits
to solar plants
Recognising the need for affordable and secure energy, the Western Balkans are prioritizing projects that support the green-energy transition. Countries need specialist financing and support to shift to domestic renewable power. No investment is more symbolic of this shift than our investment in the Oslomej solar plant – a former coal mine.
Investment
Investment
€25.7M
in project financing for construction and operation
Prioritising sustainable power
North Macedonia was born with a wealth of legacy infrastructure. The Yugoslavian era left behind a well-developed power system that relied on lignite and hydropower. Proceeding decades, however, saw little to no investment in new energy generation and modernization.
Effective capacity plummeted, and the country was forced to import fossil fuels from abroad. The energy crisis that followed Russia’s invasion of Ukraine and soaring import prices have made this situation increasingly unsustainable.
The Government recognises that no economy can thrive with a declining energy supply and rising costs. Sustainable power projects are being fast-tracked to reduce fossil fuel imports, lower costs and stabilise energy supplies.
North Macedonia’s commitment to the green transition has already led to a rebound in energy generation and installed capacity surpassing Yugoslavian-levels, driven by investments in wind and solar.
Make way for the private sector
In Kičevo, Western Macedonia, next to a village of less than 50 people, sits the disused Oslomej coal-mine. Once the pride of the region’s communist government, it is now the site of an emerging clean energy complex, including our 50MW solar power plant.
We provided €25.7 million in financing for the project, working alongside our partners, ESM, a public electricity generation utility owned by the Government of North Macedonia, and Renalfa IPP, a Vienna-based renewables developer.
The Oslomej site has been identified as one of 17 Flagship projects under the EU-backed Western Balkans Investment Framework. The framework supports investments that boost economic development and EU accession.
Generating long-term impact
Oslomej is GGF’s second direct investment in North Macedonian renewable energy infrastructure. We are mobilising private investment to kickstart the green transition, which boosts the country’s energy security and resilience, without depleting public funds.
We are also helping the mine’s former workforce by creating local jobs and helping them reskill. This helps address the growing demand for skilled labour in renewables.
We complement our financing with Advisory & 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.