Work has started on the construction of a new power substation in Ohrid, a key component of the first electricity interconnector between Albania and North Macedonia, which will range from Bitola in North Macedonia to the Albanian border. The project, financed by the European Bank for Reconstruction and Development and the European Union, is part of the EU’s initiative to establish an east-west electricity transmission corridor between Bulgaria, North Macedonia, Albania, Montenegro and Italy.The project completes the 400 kV electricity ring between Albania, North Macedonia and Greece, enhancing cross-border exchanges in electricity and contributing to the development of the regional market. A further section between Bulgaria and North Macedonia that has also been financed by the EBRD has already been completed. A new 400 kV line between Albania and Montenegro as well as a submarine cable between Italy and Montenegro are also complete and operational.The new transmission line will provide improved and affordable energy supply to residents and businesses in North Macedonia by normalising voltage levels, stabilising load flow and frequency fluctuations and decreasing technical losses in the overall transmission system.The EBRD provided EUR 37 million to the Electricity Transmission System Operator of North Macedonia (MEPSO) to support the construction of the interconnector and for the introduction of smart grid components, which improve energy forecasting and facilitate the integration of renewables into the power system. The EU co-financed the investment with a EUR12 million grant under the Western Balkans Investment Framework. In addition, Luxembourg extended funds for technical assistance to MEPSO.