Renewable Power-to-Heat in the Bitola Region
This project is completed. It conducted a feasibility study on the conversion of a district heating system to renewable power-to-heat and serves as a basis for investment activities and upscaling.
Coal Phase-out Energy Policy Energy Transition Energy Transition and Climate-Neutral Buildings Municipalities Renewable Energy
Project info
Germany, North Macedonia
11/23 - 10/25
Local governments, National governments, Regional governments, Consumers, Private sector, Non-governmental organisations
244,647.60 €
Contact info
Vesna Nedelkovska
- GAUSS Institute - Foundation for New Technolgies, Innovations, and Knowledge Transfer
- 100 percent renewable foundation
Background
According to the EU’s Strategy for Energy System Integration, the share of electricity in heating demand should increase to 40 per cent by 2030. District heating networks offer great potential for rapidly reducing CO2 emissions. However, decarbonising these systems requires fundamental economic and technological changes such as new heating business models and grid access for renewable energy.
The North Macedonian region of Bitola is part of the Initiative for coal regions in transition in the Western Balkans and Ukraine, which supports the region’s transitions to a low-carbon economy. A district heating network, currently under construction, is to be powered by steam from a nearby coal-fired power plant. Decarbonising the system could be realised with the use of large-scale heat pumps supplied with as much renewable energy as possible.
Project
The project carried out a feasibility study to pave the way for a climate-neutral district heating network in the Bitola region. It provided guidance for the successful transformation of the heating sector and clarified several barriers related to infrastructure planning, investor’s involvement and capacity development. It also presented a basis for future public and private investment, the potential of which has not yet been fully realised for power-to-heat projects.
The results of the study also helped in obtaining funding from the Instrument for Pre-Accession (IPA) to support the decarbonisation of the region’s district heating system. They also served as an example of good practice for local and regional policy makers, NGOs, investors, energy utilities and citizens as end users in North Macedonia, across the Balkans and in Europe in general. Outreach activities included the dissemination of information on the social and economic benefits of a decarbonised heating system for regional development.
Results
Technical foundation for climate-neutral district heating established: The project developed a comprehensive feasibility basis for decarbonising the district heating system in the Bitola region, including analyses of the district heating network, geothermal potential, large-scale heat pumps, renewable electricity supply, investment needs, a business plan, political benefits and a policy paper.
Local ownership and investment readiness strengthened: By involving 23 local and national organisations and establishing a Steering Committee with representatives from public administration, energy companies, academia and civil society, the project brought together key actors for implementation.
Follow-up investment and replication prepared: The project results attracted interest from international financial institutions and other regions, creating a basis for investment and for transferring the approach within North Macedonia and the Western Balkans.
Last update: August 2026