 | Clean Power for Small Towns in FYR Macedonia
Macedonia Mini Hydro-Power Project
 Citizens Join Hands to Bring Clean Power to Their Homes
Despite the ethnic unrest that shook the region in 2001, citizens of two small towns in Macedonia have overcome their differences to bring clean power to their homes. The people of Kavadarci, mostly Macedonians of Slavic ethnicity, have worked together with the people of Debar, mostly of Albanian ethnicity, on a project that will revolutionize the way they generate energy.
Macedonians are aware that their future depends on finding new sources of energy. At present, three quarters of the country’s power comes from coal-fired plants. Although coal reserves are expected to run out within the next ten or fifteen years, the country is mountainous and has considerable potential for hydro - power plants. The use of hydro - power will also lead to a healthier environment by cutting down emissions of harmful pollutants and greenhouse gases.
A GEF Grant Supports the Project
 It was the townspeople’s idea to tap their existing water systems for clean, cheap and renewable power. Both towns get their water from springs and streams high up in the mountains through a long system of pipes. Electricity could be generated whenever someone used water if small power plants were built along these pipes. However, attracting private investment to build the plants was difficult as the plants were small.
That was until the World Bank stepped in to help. A grant of US$ 750,000 from the Global Environment Facility (GEF) covers some 24 percent of the total project cost of US$ 3.9 million. It finances the construction of five mini hydro-power plants, four for Kavardaci with its long system of pipes, and one for the smaller town of Debar. Turbines and generators are financed through an export credit by the government of Slovenia. The remaining funds have been raised by the townspeople themselves.
 Revenue From Hydro-power Plants Will Benefit the Community
The sale of electricity will bring a huge infusion of revenue for Kavadarci’s local utility Komunalec, once repayment of loans is over. With expected annual income of Euro 1.5 million, Komunalec will no longer have to depend on meager budget allocations. The funds can then be used for the benefit of the community by improving roads, cleaning streets, and maintaining parks. And revenue will continue to accrue for many years, as hydro power plants last a long time and maintenance costs are very low.
Jordan Milkov, Director of Komunalec in Kavadarci sees a bright future for clean power in Macedonia. And Bardyl Kercishta, his counterpart in Debar, at the opposite end of the country, agrees.
Bank's Team Lead : James Sayle Moose
For more details of the project, please click here.
For more details of the World Bank in Macedonia, please click here. |