The transmission system operators (TSOs) of North Macedonia and Kosovo* have signed a memorandum of cooperation to develop a 400 kilovolt (kV) interconnection line between Tetovo and Prizren, aimed at strengthening cross-border electricity transmission and supporting the region’s energy transition.
The agreement was signed in Skopje by MEPSO Director-General Burim Latifi and KOSTT Acting Chief Executive Shaban Neziri. The project, which includes additional grid upgrades, is positioned as a strategic energy infrastructure development in line with the European Union’s 2050 decarbonisation targets.
The initiative has been nominated on the European Network of Transmission System Operators for Electricity’s (ENTSO-E) planning platform to increase regional transmission capacity.
Currently, the two countries are connected by a single 220 kV line. MEPSO said that Southeastern Europe must at least double its cross-border transmission capacity to accommodate growing demand and renewable energy integration.
Under the plan, North Macedonia will also invest in a 400/110 kV transformer station in Tetovo, as well as 400 kV lines connecting Tetovo to Skopje and Ohrid.
“This project will not only enhance grid reliability and capacity but also facilitate electricity exchange and attract investments in renewable energy,” Latifi said.
The proposed Tetovo–Prizren interconnection is expected to reinforce the East-West energy corridor and contribute to a more flexible and secure power system in the Western Balkans.
“With this project, we are advancing regional energy connectivity and helping meet the Western Balkans’ energy goals,” Neziri said.
The project is currently in the planning and technical preparation stage. Construction will begin once financing is secured and regulatory approvals are obtained, MEPSO added.
Improved cross-border infrastructure is seen as critical for electricity market integration in the region and alignment with EU market rules. North Macedonia and Kosovo*, along with Albania and Greece, are part of a delayed market coupling initiative that could help exempt the region from the EU’s incoming Carbon Border Adjustment Mechanism (CBAM), which imposes CO₂ tariffs on imports starting January 1.