【North Macedonia’s ESM Signs Three-Year Deal for 3 Mt of Kosovo Coal, with Annual Deliveries Limited to Around 0.8 Mt】

North Macedonia’s state-owned power producer ESM has signed a three-year coal supply agreement with Kosovo Energy Corporation (KEK), allowing ESM to obtain approximately 3 million tonnes of coal from Kosovo’s Obilić mining area over 36 months. The price is fixed at €24.4 per tonne, with the coal intended for the Bitola and Oslomej thermal power plants.

ESM estimates that it requires approximately 1.4 million tonnes of externally sourced coal annually to supplement domestic production. However, capacity at the Blace border crossing currently limits deliveries from Kosovo to around 800,000 tonnes per year. Unless transport capacity increases, actual deliveries could total approximately 2.4 million tonnes over three years, below the 3 million tonnes covered by the agreement.

The coal has an average calorific value of approximately 1,950 kcal/kg. ESM said it has low sulphur and ash content and is expected to improve power-plant efficiency, support around 800 GWh of additional annual electricity generation and generate approximately €57 million in revenue while reducing fuel-oil consumption and carbon emissions. These remain company projections.

ESM plans to launch a tender by the end of August to select an operator responsible for extracting, testing, loading and transporting the coal. The agreement will formally enter into force after the operator-selection procedure is completed.