Location:FYR Macedonia

Project number:50415

Business sector:Power and energy

Notice type:Public

Environmental category:B

Target board date:28 Nov 2018

Status:Concept Reviewed

PSD disclosed:11 Sep 2018

Project Description

Provision of up to EUR 7 million long-term senior debt financing for the construction of a 10MW PV plant, adjacent to the existing TPP Oslomej. The PV plant will be constructed on the exhausted coal mine of the TPP Oslomej and the electricity produced will be directly sold in the nearby grid.

Project Objectives

The objective of ELEM is to make its first investment into PV plant, as part of the Company’s strategy to decarbonise and develop a portfolio of RES projects. Furthermore, ELEM will take advantage of the proximity of the existing TPP substation, and at the same time the Project is likely to offset ELEM’s obligation to invest in rehabilitating the site.

Transition Impact

Good.
The project will target the Green Transition Quality by supporting the development of a 10MW solar PV plant which is expected to displace approximately 12,500 tonnes of CO2 annually.

Electricity produced will be sold through the market without depending on a support scheme such as the feedin-tariff.

Client Information

ELECTRICITY GENERATION COMPANY OF THE REPUBLIC OF MACEDONIA

ELEM is a public electricity generation utility, fully owned by the Government of FYR Macedonia.

The Company provides around 90% of the entire domestic production. Average annual production is about 5,000 GWh from TPP (installed capacity of 842 MW) and 1,200 GWh from the HPP (installed capacity 554 MW). ELEM also operates the first Wind farm in the Country, with installed capacity of 36.8 MW and production of about 100 GWh annually.

EBRD Finance Summary

EUR 7,000,000.00

Senior corporate loan to ELEM JSC

Total Project Cost

EUR 10,000,000.00

Environmental and Social Summary

Categorised B (Environmental and Social Policy, 2014): Environmental and Social risks associated with a small scale solar PV plant in an industrial zone within close proximity of the grid connection are identifiable and can be readily mitigated.  This pilot project represents the opportunity to demonstrate the effectiveness of a new type of renewable energy by the public electricity generation utility and will assist with further diversifying the energy mix in the country which is currently dependent on non-renewable sources. In addition, the use of a brownfield site within a former lignite mine provides rehabilitation and beneficial re-use of this currently unused land and mitigates the land use impacts which can be associated with PV plants.  Successful implementation of this project could mean it becomes one of several more PV plants to be developed as part of mine closure and rehabilitation, delivering renewable energy at the location of a former carbon intensive energy producer.

Environmental and Social Due Diligence (ESDD) is being carried out by an independent consultant to assess the Client’s E&S capacity, policies and procedures as well as to assess the Project against the Performance Requirements. In addition, the Client is being supported with TC funds to assist with specific baseline data collection and establishing the division of responsibilities between the Client and the EPC Contractor.  The site selected for development (former lignite pit) may require ground remediation and / or ground improvement works prior to construction. EBRD is currently supporting the client to assess the need for pre-construction remedial works and associated costs, through the ESD GET Framework TC. Upon completion of the ESDD a non-technical summary, stakeholder engagement plan and Environmental and Social Action Plan will be developed and agreed with the Client.

Technical Cooperation

The project will benefit from TC funds to support the technical due diligence for the PV plant which will incorporate comprehensive a technical review of the existing radiation measurements. The consultants will also provide guidance to the company on the minimum technical requirements to be included in the tender specifications to ensure alignment of the project with international best practice. ELEM will co-finance the costs with 10% cost sharing.

In addition, the project will benefit from TC for Environmental and Social Assessment to identify and assess any potentially significant future adverse environmental and social impacts associated with the project, assess compliance with applicable laws and the EBRD ESP and PRs, determine the measures needed to prevent or minimise and mitigate the adverse impacts, and identify potential environmental and social opportunities, including those that would improve the environmental and social sustainability of the Project. In addition, the Consultant will provide GEPT assessment for pre-construction ground remedial costs to be incorporated into the project documentation.

Company Contact Information

Igor Ilijovski, B.Sc.El.Eng
igor.ilijovski@elem.com.mk
+ 389 (0) 2 31 49 245
+ 389 (0) 2 32 24 492
www.elem.com.mk
JSC MACEDONIAN POWER PLANTS 11 Oktomvri 9, 1000 Skopje, R. Macedonia

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD’s accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of 

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