Focus on Energy, 2010 - Karanovic & Nikolic

Status: The procedure for the granting of a concession was put on hold following an announcement bythe MoE on 24 September 2009. Only one bidder had submitted the concession documentation underthe given preconditions of the project. It is likely that in the coming period, the MoE will amend thesepreconditions in order to attract more potential investors to participate in the bid.Small HPP ProjectThe Government’s small hydro plants project continues in 2010 with the approval of 5 new concessionagreements for the development of such plants. According to the agreements, 5 new small plantsare planned to be erected at locations in Macedonia, with a total annual power production of 13.37GWh. The Minister for the Economy, Fatmir Besimi declared that the investments should not be seenas investments only, but as long-term solutions of the state’s increasing need for new and clean energysources.A study 4 on the development of small hydro plants envisages the establishment of as many as 400 plantsthroughout the territory of Macedonia. The total installed power of these plants is estimated to be in theregion of 250 MW and the expected annual production is set at approximately 1,200 GWh. The MoEhas signed 28 concession agreements so far, all of which are based on the DBOT model (Design, Build,Operate and Transfer). The statement of the MoE says that the preparations for an international publicannouncement on 36 new locations with a total installed capacity of 20 MW have already started.44The Government announced a public call on 15 February 2010 to attract bids for the granting of a waterconcession regarding the generation of electric energy from 36 small hydro power plants (each with anindividual installed power production capacity of 5 MW). They are to be built and operated on the riverbasins Vardar, Strumica and Crn Drim. The deadline for the return of the completed tender documentationwas the 15 March 2010 5 .FOCUS ON ENERGY4 Study performed by the Skopje University in 1981 in order to identify possible sites for the development of small hydro power plants.5 Source: Public Call for collecting bids for the granting of water concession for electric energy generation from 36 small hydro power plants, publishedon 15 February 2010 by the Ministry of Economy of RM.