The Government of the Republic of North Macedonia has awarded a concession for the use of water for the production of electricity with construction of hydro power plants on the Crna Reka.
The concession for the 333 MW Chebren pumped storage hydropower plant was awarded to Public Power Corporation S.A. and Archirodon Group, both from Greece, working together at PPC-Archidoron.
The selected bidder is obligated within three months to execute the agreement for joint venture and establishing a joint stock company with JSC ESM, where JSC ESM will have 33% share in the capital. The registered company is obligated, in compliance with the Law on Waters and before signing the agreement for concession, to secure a permit for use of the water.
The government said this is one of the largest and most important energy projects in the Republic of North Macedonia. The estimated value of the investment is at least €1 billion (US$1.1 billion). Chebren will produce electricity and also feature a reversible pumping system, and its construction will involve the creation of a new artificial lake on Crna Reka.
After the design and securing the necessary documents, it is expected to start construction that will last for seven years.
Chebren is of exceptional importance for the energy transition of North Macedonia and the region due to the possibility for balancing of the renewable energy sources. At the same time, it will be of immense importance for flood protection, water supply, agriculture, etc. The dam will be 192 m high.
The first feasibility studies for the Chebren plant were conducted in the 1960s. According to the Ministry of Environment and Physical Planning, in 1986 agreements for preparation of the investment technical documents were signed for the Chebren project. In the past 20 years, there were 13 unsuccessful tenders.
According to the International Hydropower Association, Macedonia has a technical hydropower potential of 5,500 GWh, of which only about 1,500 GWh is currently used, representing a total installed capacity of 674 MW.