Energy

Sector Overview

This is one of the most promising industry sectors for the Macedonian economy. Recent energy market developments include the continued expansion of the internal gas distribution network, further liberalization of the electricity market, and increased regional cooperation for electricity and gas interconnections. North Macedonia adopted a new Energy Law in June 2018, aligning its energy legislation with the EU Energy Community’s Third Energy Package.

North Macedonia is a full member of the European Network of Transmission System Operators for Electricity (ENTSO-E), ensuring interconnection compatibility with European electric power systems.

The country’s state-owned electricity company was unbundled and partially privatized in the 2000s. Since 2006, Austrian utility company EVN has been responsible for electricity distribution, while the state-owned company MEPSO operates North Macedonia’s electricity transmission system.

ESM is North Macedonia’s state-owned electricity producer, managing the country’s power generation plants.

North Macedonia - a Strategic Hub for Energy Investment

North Macedonia is actively shaping its energy future, leveraging its strategic location in Southeast Europe to enhance energy security, expand renewable energy production, and modernize infrastructure. With a commitment to sustainability, the country offers attractive opportunities for investors in electricity generation, transmission, and energy efficiency projects.

Diverse energy mix & growing renewable potential

North Macedonia’s energy sector is transitioning towards cleaner and more efficient solutions. While lignite remains a primary energy source, the country is significantly increasing investments in renewables, including:

  • Hydropower – A well-established sector with untapped potential for small and large-scale projects.
  • Solar Energy – With high solar irradiation, North Macedonia is rapidly expanding photovoltaic (PV) capacity.
  • Wind Power – Existing wind farms are operational, with further projects in development.
  • Biomass & Green Hydrogen – Emerging opportunities for sustainable energy production.

Government commitment & policy support

The government actively supports the energy transition through:

  • National Energy Strategy (2021–2040) – Focused on decarbonization and increasing renewable energy capacity.
  • Incentives for Investors – Including feed-in tariffs, premium auctions, and public-private partnerships (PPPs).
  • Integration into European Markets – Aligning policies with EU directives and enhancing cross-border energy trade.

Infrastructure & Regional Connectivity

North Macedonia plays a crucial role in regional energy networks, with:

  • Interconnections with Greece, Albania, Bulgaria, and Serbia – Strengthening energy security and market integration.
  • Gasification Projects – Expanding natural gas infrastructure to reduce dependency on coal.
  • Smart Grid & Digitalization Initiatives – Improving efficiency and reliability in power distribution.

Natural gas and transition energy sources

As part of its energy transition plan, North Macedonia is focusing on expanding its natural gas infrastructure, including projects like the interconnector with Greece that links to the Trans Adriatic Pipeline (TAP). Investments in gas distribution networks and industrial gas supply chains will support the transition away from coal and facilitate the country’s broader energy transformation.

North Macedonia is committed to a sustainable energy future—be part of the transition!

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