North Macedonia currently generates about 24 percent of its energy from renewable sources, primarily hydropower, leaving significant untapped potential in solar and wind energy. With an average of 260-280 sunny days per year, the country receives thirty to forty percent more solar radiation than the European average, presenting a major opportunity to advance energy independence and achieve national climate goals. Turning this natural advantage into practical solutions requires both political commitment and accessible financial support.
The Green Financing Facility (GFF) has emerged as a key enabler in this transition by reducing investment risks and improving access to finance for households and small and medium-sized enterprises (SMEs). By providing targeted grants and favorable loan terms, the GFF ensures that the clean energy transition is accessible to those facing the greatest barriers, including households affected by energy poverty and businesses seeking to remain competitive. The facility helps families and local businesses convert the country’s abundant sunlight into long-term energy resilience, cost savings, and environmental benefits.
For SMEs, the GFF empowers businesses to shift from passive energy consumers to active energy producers. Through a 10 percent investment grant and advantageous financing, enterprises gain greater control over energy costs, reduce exposure to price volatility, and lower their carbon footprint. Investing in renewable energy has become both an environmental responsibility and a strategic business decision, enabling sustainable growth.
The initiative has already produced tangible results. In Bitola, Transkop AD upgraded its intercity bus station by installing a photovoltaic power plant on the roof, transforming an unused surface into a source of clean energy. The station now generates electricity for its operations, reduces costs, and creates additional revenue by selling excess energy back to the grid. Similarly, Eko Energy 2022 secured the largest loan under the GFF to build a large-scale photovoltaic plant, producing over 2,800 MWh of clean electricity annually and avoiding approximately 2,300 tons of greenhouse gas emissions. These projects demonstrate how clean energy investments can enhance economic stability while reducing dependence on imported electricity.
Households are also benefiting from the GFF. With a thirty percent grant on loans for renewable energy installations, families can afford energy-efficient solutions. For example, Sinisha Baeder returned to his hometown of Shtip and built a solar-powered, energy-efficient home for his family, with the grant making the investment financially feasible. Stories like these illustrate how financial support translates solar potential into accessible, sustainable solutions for everyday citizens.
By supporting both enterprises and households, the GFF is driving North Macedonia toward a decentralized and resilient energy system. Rooftop solar installations, clean energy production, and private sector engagement are strengthening the economy, improving energy security, and protecting the environment. The experiences of Transkop AD, Eko Energy 2022, and the Baeder family highlight that the country’s abundant sunshine can now be transformed into a practical engine of modern prosperity, paving the way for a greener, more energy-independent North Macedonia.
The Green Financing Facility program is financed by the UN Joint SDG Fund, the Government of North Macedonia, EBRD, and participating financial institutions, and implemented by UNDP North Macedonia, IOM, UNECE Sustainable Energy, and EBRD, with contributions from numerous EU and global partners to support the country’s clean energy transition.
