| Project Detail |
Location:
North Macedonia
Project number:
51747
Business sector:
Energy
Notice type:
State
Environmental category:
IEE
Approval date:
24 Apr 2024
Status:
Passed Final Review, Pending Approval
PSD disclosed:
19 Feb 2024
Project Description
The EBRD is considering a sovereign-guaranteed loan of up to EUR 98.6 million in favour of NOMAGAS (the "Company" or the "Client"). The loan proceeds would be used for construction of 100% hydrogen ready (i) natural gas interconnection pipeline with Greece (66km; interconnection) and (ii) two natural gas transmission pipelines, Gostivar to Kicevo (34km; Section 1) and Sveti Nikole to Veles (28km; Section 2) in North Macedonia.
Project Objectives
The investments will supply gas to North Macedonia. This enables an accelerated transition away from coal and towards renewable energy by decommissioning existing coal fired Thermal Power Plants (TPPs) by 2030. It is expected that 1.7 GW of renewable energy will also be deployed, which will result in net 82% reduction of Green House Gas emission by 2030. Furthermore, the Project will significantly reduce air pollution by displacing (i) inefficient forms of heating in the commercial and residential sectors and (ii) use of petroleum products and solid fuels. The Project is also 100% hydrogen ready and does not prevent the entry of low carbon solutions into the end use markets. The Project facilitates the diversification of gas supply to North Macedonia through the Trans Adriatic Pipeline ("TAP") and LNG terminals in Greece, also providing possibility to supply neighbouring Serbia. This will improve the competitiveness of private sector businesses and reduce gas prices, through increasing gas supply by 2.5 times (from existing 0.8 bcm to 3.6 bcm) and thereby further support the decarbonisation of the energy sector at lower cost of supply.
North Macedonia has adopted the Just Transition Roadmap in June 2023, ensuring protection of vulnerable people and communities. This was recognised and supported by the Climate Investment Funds (CIF) and North Macedonia became pilot country for the Accelerating Coal Transition (ACT) Programme. In this line, the EBRD helped to develop and signed at COP 28 a Joint Declaration with the Government of North Macedonia and other partner institutions, for in-country platform for North Macedonia to ensure just and accelerated coal transition.
The Project is assessed as Paris Aligned, and consistent with the EBRD Energy Sector Strategy (2024-2028). |
