Funding Programme: European Climate Initiative (EUKI), implemented by GIZ on behalf of the German Federal Ministry for Economic Affairs and Climate Action (BMWK)
Project Reference: EUKI 23_063
Implementation Period: November 2023 – October 2025
Location: Bitola Region, North Macedonia
Project Website: p2h.gaussinstitute.org
The Renewable Power-to-Heat in Bitola Region project addressed one of the most pressing energy challenges in North Macedonia: the decarbonisation of district heating in Bitola, a city of approximately 80,000 residents whose heating system has historically relied on the coal-fired Bitola power plant complex. By coupling the electricity and heat sectors through large-scale heat pump technology and renewable energy sources, the project developed a comprehensive technical, financial, and policy roadmap for North Macedonia’s first large-scale green district heating transition.
The project is aligned with the EU Strategy for Energy System Integration and the Integrated National Energy and Climate Plan (NECP) 2025–2030 of the Republic of North Macedonia, contributing to the country’s path towards climate neutrality and supporting the broader just energy transition in the Western Balkans.
GAUSS Institute — Foundation for New Technologies, Innovations, and Knowledge Transfer acted as the lead implementing organisation and recipient of the EUKI subsidy. In this capacity, GAUSS Institute was responsible for:
- Overall project management and coordination, including quality assurance of all project outputs and financial management of the grant
- Leadership of all technical work packages, covering feasibility analysis, investment assessment, and socio-economic impact evaluation
- Stakeholder engagement and communication, including the organisation of national conferences, workshops, and the Steering Committee
- Dissemination and outreach, including the project website, media relations, and international representation at European energy forums
- Knowledge transfer and capacity building of local and national decision-makers in North Macedonia
The project was implemented in cooperation with the 100% Renewables Foundation (Germany), which provided energy policy expertise and produced the policy paper.
GAUSS Institute led the research and analysis underpinning three major feasibility reports, covering:
- Analysis of the existing district heating infrastructure in Bitola and identification of operational parameters
- Technical specifications and deployment scenarios for large-scale heat pumps
- Assessment of renewable energy sources (solar PV, wind, biogas, geothermal) to power the heat pump system
- Estimation of future electricity consumption profiles and scenario modelling
Investment and Financial Analysis
- Assessment of total investment needs for the renewable energy and heat pump scenarios
- Evaluation of electricity market prices, heat cost calculations, and heating price projections
- Identification of financing and funding opportunities, including grant-based and low-interest loan models
Socio-Economic Impact Assessment
- Analysis of new employment opportunities generated by the transition
- Quantification of financial benefits for households and the regional economy
- Assessment of environmental benefits, including CO₂ emission reductions
Communication and Dissemination
- Organisation of the inaugural conference in Bitola (June 2024) and the final conference (October 2025), together attended by over 126 participants from government, business, academia, and civil society
- Conduct of workshops presenting project findings to local and national stakeholders
- Participation in international events: EUKICON24 Berlin (May 2024), Thessaloniki International Fair (September 2024), EUKI Western Balkans Networking Conference in Sarajevo, and Hydrogen Technology World Expo 2025 in Hamburg
- Maintenance of the project website and management of 21 national and regional media contributions
The project successfully demonstrated that a transition to a renewable district heating system in Bitola is technically feasible and economically viable. Key results include:
- 3 comprehensive feasibility reports (District Heating Analysis, Heat Pump Analysis, Renewable Energy Analysis) and an Investment Analysis with Business Plan, all published in English and Macedonian
- 1 Policy Paper providing energy policy recommendations for the Western Balkans region
- 167 participants at project events; 126 participants at two national conferences
- 21 media contributions reaching national and regional audiences
- 23 local and national organisations engaged across government, academia, business, and civil society
- Interest confirmed from KfW (preparing follow-up decarbonisation activities in Bitola), AD Elektrani na Severna Makedonija (ESM) (integrating the transition into its development plans), and the Ministry of Energy and Mineral Resources (considering investment and replication)
- 3 replication enquiries from other regions in North Macedonia, positioning the project as a model for the wider Western Balkans
The current district heating system in Bitola emits approximately 8,500 tonnes of CO₂ per year; the project provides a concrete roadmap to eliminate these emissions and support the region’s just energy transition.
| Deliverable | Description |
| Report 1a — District Heating Analysis | Status quo assessment and parameters for decarbonised heat supply |
| Report 1a Annex — Geothermal Energy Potential | Analysis of geothermal resources in the Bitola region |
| Report 1b — Heat Pump Analysis | Technical specifications and scenarios for large-scale heat pump deployment |
| Report 1c — Renewable Energy Analysis | Scenarios for solar PV, wind, biogas integration |
| Report 2 — Investment Analysis | Full cost-benefit analysis and heat price projections |
| Report 2 Annex — Business Plan | Financing model and investment roadmap |
| Report 3 — Socio-Economic Benefits | Assessment of jobs, financial gains, and environmental impact |
| Policy Paper | Energy policy recommendations for the Western Balkans |
| Executive Summaries & Infographics | Communication materials for non-technical audiences |
| Project Website | p2h.gaussinstitute.org — open-access repository of all outputs |
All reports are published as open-source documents in both English and Macedonian.
Implementing Partners: GAUSS Institute (lead) · 100% Renewables Foundation (Germany)
Steering Committee members: Municipality of Bitola · Municipality of Novaci · Municipality of Mogila · Ministry of Energy and Mineral Resources of North Macedonia · AD Elektrani na Severna Makedonija (ESM) · AD Toplifikacija Bitola · Center for Development of the Pelagonia Planning Region · University “St. Kliment Ohridski” – Bitola · Preda Plus Foundation · KfW
This project was funded by the European Climate Initiative (EUKI). EUKI is a project financing instrument of the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The initiative promotes cooperation in climate change mitigation within the European Union.