Kazancı Holding, a prominent Turkish conglomerate, has announced plans to invest €1bn in North Macedonia's energy sector, the government in Skopje announced on February 25.

The investment will focus on electricity and heat production through gas cogeneration plants, alongside the construction of a secondary gas network aimed at resolving the country's energy challenges.

North Macedonia's Prime Minister Hristijan Mickoski shared the news following meetings with representatives of Kazancı Holding, which operates its energy business under the Aksa brand.

Aksa Energy is one of the largest players in the energy sector, boasting over 25 years of experience and an installed capacity exceeding 3,500 MW across eight countries.

"We had meetings with the management of Kazancı Holding, which through its energy companies under the Aksa brand, represents one of the largest energy giants in its field," Mickoski said at the news conference.

The potential investment will see the construction of cogeneration plants with a total installed capacity of 500 MW, producing 4.1 TWh of electricity and 720 GWh of heat annually.

These plants will play a central role in solving North Macedonia's air pollution issues, according to Mickoski.

"When it comes to solving the problem of air pollution, we are talking to investors interested in building cogeneration gas plants, which are actually the only permanent solution to air pollution," he added.

The secondary gas and hot water network is another key component of the project. It will extend gas and hot water connections to households under exceptionally favourable conditions, with the cost of connections expected to be zero for residents. Furthermore, the price of natural gas for households will be significantly lower than the market rate.

Mickoski stressed the importance of the €1bn project for both the environment and North Macedonia’s energy independence, a key component in strengthening the country’s sovereignty.

"Investments in this field are a guarantee and strengthening of our energy independence, which in the 21st century is actually a strengthening of the sovereignty of the state in its decision-making and policy-making," he said.

The prime minister also underscored the project's far-reaching impact on the country's economy, environmental sustainability, and its strategic positioning in the global energy market.

Discussions with Kazancı Holding are ongoing, and Mickoski expressed confidence that an agreement would soon be reached, leading to concrete steps towards realising the plans.

Kazancı Holding, which operates in 22 countries across four continents, is a key global investor in sustainable energy.