This is one of the best prospect industry sectors for North Macedonia.
Energy market developments in North Macedonia included further construction of an internal gas distribution network, continued liberalization of the electricity market, and increased regional cooperation for electricity and gas interconnections. North Macedonia adopted a new Energy Law in June 2018, harmonizing its energy legislation with the EU Energy Community’sThird Energy Package.
The electric power generation capacity in North Macedonia in 2018 mainly consisted of two thermal power plants with a total of 800 MW installed capacity, eight large hydropower plants with 586.65 MW installed capacity, 96 small hydropower plants with 106,32 MW installed capacity and three CHP plants with 287 MW installed capacity. The two thermal plants produce 70 percent of the country’s total electricity.
The total annual production of electricity in 2018 was 5,447 GWh, which provided 69 percent of the total domestic electricity needs. North Macedonia is a full member of the Union for the Coordination of Production and Transmission of Electricity European Interconnection (UCPTE), which ensures interconnection compatibility with European electric power systems.
North Macedonia’s state-owned power company was unbundled and partially privatized in the 2000s. Austrian utility company EVN has been responsible for electricity distribution since entering the market in 2006. State-owned MEPSO is the country’s electricity transmission system operator. ESM (Elektrani na Severna Makedonija / Powergeneration Plants of North Macedonia; formerly ELEM) is North Macedonia’s state-owned electricity producer.
ESM owns and operates the only wind power capacity, a 36.5 MW wind park in the southern part of the country. It plans to increase capacity to 50 MW, and add a separate 14 MW capacity park.
Following the privatization of the electricity distribution system, the government has liberalized part of the electricity generation market. The government is offering limited concessions for investment in small hydropower facilities.
Renewable energy generation project opportunities, such as investments in electricity generation from wind and solar, and in thermal power generation systems are subject to quotas.