Mini-Hydropower Project

The project would assist the Government of FYR Macedonia in reducing green-house gas emissions by substituting hydropower for fossil fuels, especially lignite, in power generation. Specifically, the proposed GEF grant would cover the agreed incremental costs of three mini-hydro plants to be installed on the water supply systems of the towns of Kavadarci, Struga and Derbar by independent power producers. In order to mainstream the Project, it would extend the reforms initiated under the Bank financed Power System Improvement Project and serve as a vehicle for establishing the necessary power off-take arrangements between the IPPs and ESM, the national power utility.