ESM and KEK sign three-year coal supply agreement

Elektrani na Severna Makedonija (ESM) has signed a strategic three-year agreement with Kosovo's state-owned energy corporation, KEK, to secure a continuous supply of high-quality coal. The deal grants ESM a concession at the Obiliq mine to exploit approximately three million tons of coal over the next 36 months.

The contract establishes a guaranteed fixed price of 24.4 euros per ton. This partnership aims to protect the domestic energy system from coal shortages and international market price fluctuations. ESM expects the agreement to increase annual electricity production by approximately 800 GWh and generate revenues of around 57 million euros.

Additionally, the shift to Kosovan coal is expected to improve thermal plant efficiency and reduce reliance on fuel oil. This is projected to result in an annual reduction of CO2 emissions by approximately 923,000 tons from coal usage and an additional 55,980 tons from decreased fuel oil consumption. ESM will manage all logistics, including extraction and transport, following a tender for an economic operator to be announced by the end of August.