With €500 million in investment, North Macedonia is betting on renewables — and regional influence
North Macedonia is making headlines — not for political discord or regional debates, but for wind. The construction of what will be the country’s largest wind farm, backed by Alcazar Energy, marks a milestone in the shift toward renewables and energy security in the Western Balkans.
Powering the Shif
The Štip wind farm, spearheaded by Alcazar Energy, is set to become North Macedonia’s largest renewable energy project. With an investment exceeding $500 million, the project aims to install 400 MW of wind capacity, significantly boosting the country’s renewable output. Once operational, it is expected to supply electricity to over 100,000 households and reduce carbon emissions by more than 670,000 tons annually — a notable leap forward for a country of just 1.8 million people.
The project aligns with the government’s pledge to phase out coal by 2030 and transition to a cleaner, more resilient energy mix. North Macedonia currently imports a large share of its electricity needs and relies heavily on fossil fuels. With energy prices fluctuating across Europe, the strategic importance of domestic, renewable generation has never been more urgent.
The Regional Context
This transformation is not happening in isolation. Across the Western Balkans, countries are rethinking their energy strategies in the face of climate targets, outdated infrastructure, and geopolitical instability. While Albania benefits from hydropower and Serbia continues to rely heavily on coal, North Macedonia’s wind and solar push is
positioning it as a regional model for clean energy transition. Strategically located with grid connections to Bulgaria, Greece, and Kosovo, North Macedonia has the potential to become a clean energy corridor for the Balkans — especially if cross-border infrastructure and market reforms keep pace.
Who’s Behind It
The project is led by Alcazar Energy, a Dubai-based investor specialising in renewable infrastructure in emerging markets. Alcazar has previously developed wind and solar projects across the Middle East and North Africa, and sees North Macedonia as a natural fit for its expansion into Southeast Europe.
“Our focus is on long-term, sustainable value in regions where clean energy can be transformational,” Alcazar Energy said in a recent statement. “North Macedonia’s regulatory environment, strategic location, and political commitment make it a compelling place to invest.”
Speaking exclusively to The Region, Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy, added:
“The Štip project is a major milestone for Alcazar Energy and our investors.
Alongside the Bijela wind farm in Montenegro, these two projects will total 600 MW across all phases — making them by far the largest in their respective countries. Combined with the 960 MW we’re developing in Serbia, Alcazar will have nearly 1.5 GW of renewable energy in progress across the Western Balkans.
“This scale matters. As the EU begins measuring carbon emissions under the Cross-Border Adjustment Mechanism in 2026, having a regional renewable energy IPP like ours will be crucial to reducing the carbon intensity of Western Balkan exports and enhancing their competitiveness.”
“We’re especially grateful to have been welcomed in North Macedonia. Thanks to strong local partnerships and stakeholder support, it is leading the way in our regional development strategy. In fact, our project there is currently the largest and most advanced in our Western Balkans portfolio.”
Financing the Future
The Štip wind farm is being financed through a mix of debt and equity, with Alcazar recently raising $490 million through its Alcazar Energy Partners II fund. Key backers include the U.S. International Development Finance Corporation (DFC) and other public and private investors. The scale of support reflects growing confidence in North Macedonia’s clean energy framework and its efforts to create bankable, transparent investment conditions.
Additional support has come through the Climate Investment Funds (CIF), which committed $85 million to help North Macedonia retire coal assets and scale renewable infrastructure.
The Štip wind farm is a central pillar of that national strategy.
Alcazar’s Vision for the Western Balkans
“As the EU begins measuring carbon emissions under the Cross-Border Adjustment Mechanism in 2026, having a regional renewable energy IPP like ours will be crucial to reducing the carbon intensity of Western Balkan exports and enhancing their competitiveness.”
About Daniel Calderon:
Daniel Calderon is the Co-Founder and Managing Partner of Alcazar Energy, a Dubai-based investment company focused on renewable infrastructure in emerging markets. Before founding Alcazar in 2014, he led major energy projects at Masdar and General Electric. He holds degrees in Industrial Engineering and Finance from the University of Massachusetts Amherst and an MBA from London Business School.
Beyond Wind
While wind is leading the headlines, North Macedonia is also investing in complementary technologies. Turkish company Fortis Energy has partnered with Pomega Energy Storage Technologies to install a 62-MW/104-MWh battery system at an 80-MWp solar park — one of the largest energy storage projects in the region.
This investment in storage is critical, allowing the country to better balance fluctuating supply and demand, and paving the way for more renewable capacity to come online without destabilising the grid.
A Turning Point
If completed on schedule, the Štip wind farm will double North Macedonia’s renewable energy capacity and mark a defining moment in its energy transition. For a country often overshadowed in regional politics, it’s a rare chance to lead — not just in ambition, but in execution.
And in a region still balancing between old power systems and new opportunities, North Macedonia’s wind-driven push may well become the benchmark for what’s possible.
What sets this moment apart is the convergence of urgency and readiness.
The need for clean, independent energy is no longer abstract — it’s economic, geopolitical, and immediate. With volatility in global energy markets and growing pressure from EU mechanisms
like the Carbon Border Adjustment Mechanism (CBAM), the countries of the Western Balkans face a simple question: adapt or fall behind.
North Macedonia’s response is clear. By embracing large-scale renewable infrastructure, partnering with international investors, and unlocking climate finance, it is not only reducing its carbon footprint — it is rebranding itself as a forward-leaning energy innovator. If successfully delivered, the Štip project could serve as a model for how smaller nations with the right political alignment and regulatory commitment can punch above their weight on the energy map.
As turbines rise from the rolling landscape of eastern North Macedonia, they will not only generate power, but also possibility — a signal to the region that the future doesn’t have to wait.