| Work Detail |
VCI Global Limited has signed a term sheet to acquire a 1.14 MW solar farm in Novo Selo, North Macedonia, for approximately $1.26 million (€1.2 million). The acquisition is pending due diligence and a final agreement. This solar farm features bifacial panels and Huawei Technology inverters, achieving over 90% system efficiency, meaning it operates at more than 90% of its potential output.
The inverters convert direct current (DC) from the panels into alternating current (AC) for the national grid. It is connected under a Power Purchase Agreement (PPA) with Mega Concept LLC Skopje, offering steady revenue based on HUPX pricing. The project also earns income from carbon credits, enhancing its profitability. With a payback period of about 9 years, the solar farm is projected to provide strong financial returns over its 30-year lifespan.
Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global, said in a statement, “This is the beginning of a series of solar farm acquisitions that VCIG will undertake and looking ahead for more acquisition opportunities across Southeast Asia and Europe. By targeting solar farms with strong grid connections and government support, we are building a sustainable asset portfolio.”
North Macedonia, historically dependent on lignite coal for 30% of its electricity and gas imports for another 15%, is making significant strides toward decarbonization. Under its National Energy and Climate Plan (NECP), the country aims to generate 38% of its energy from renewables by 2030 and 42% by 2040. Solar capacity has seen rapid growth, reaching 535 MW by the end of 2023, up from 190 MW in 2022, as reported by the International Renewable Energy Agency (IRENA).
This progress is fueled by abundant sunlight, supportive government policies to cut coal reliance, and North Macedonia’s strategic location as a link between Southeast Europe and the EU. VCI Global sees this acquisition as a key move to establish itself in the European renewable energy sector. VCI Global has partnered with OTB Solutions Dooel Skopje, a consulting firm in North Macedonia, to explore and secure more opportunities in the solar energy sector. |
