Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Renewable Energy Snapshot: fYR Macedonia

Renewable Energy Snapshot: fYR Macedonia

Ratings: (0)|Views: 56 |Likes:
A country overview of the investment climate, current legislation and policies, institutional arrangement and where to find further information for investment in sustainable energy.
A country overview of the investment climate, current legislation and policies, institutional arrangement and where to find further information for investment in sustainable energy.

More info:

Categories:Types, Brochures
Published by: UNDP in Europe and Central Asia on May 14, 2014
Copyright:Traditional Copyright: All rights reserved


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





Macedonia has huge technical potential for renewable energy electricity generation. To exploit this potential, in 2007the Government of the former Yugoslav Republic of Macedonia introduced feed-in tariffs for renewable energy plantoperators. Eligible renewable energy developers receive the feed-in tariffs via a power purchase agreement with themarket operator that is valid for 20 years for wind farms and for 15 years for other technologies. Although the officialcurrency is the Macedonian Denar, all tariffs are in Euros. Despite the favourable legislation, the increase in installedrenewable energy capacity in recent years has remained low. The main reasons include the bureaucracy and com-plexity involved in obtaining permits for construction, land use and electricity generation (Mijakowski and Mijakowski,2013). The former Yugoslav Republic of Macedonia performs well in the World Banks’ Ease of Doing Business index,where it is ranked in 25
spot (IFC & World Bank, 2014). The country would therefore appear to offer a promising
 The former Yugoslav Republic of Macedonia
General Country Information
Population: 2,105,575Surface Area: 25,710 km²Capital City: SkopjeGDP (2012): $ 9,6 billion GDP Per Capita (2012): $ 4,568WB Ease of Doing Business:25
: Pavlovic et al. (2013); Lalic et al. (2011); Mijakowski and Mijakowski (2013); EVN Macedonia (2013); Energy Agency (2013);Government of the Republic of Macedonia (2010); EWEA (2013); World Bank (2014); Renewable Facts (2013); EIA (2013); Hoogwijk and Graus (2008); Hoogwijk (2004); JRC (2011); and UNDP calculations.
Key informationabout renewable energy in the former Yugoslav Republic of Macedonia
Empowered lives.Resilient nations.
RE Share
1,581 MW
 Total Installed Capacity
BiomassSolar PVWindSmall Hydro
67 MW
Installed RE Capacity
Electricity Generating Capacity 2012Installed Renewable Electricity Capacity 2012 in MWTechnical Potential for Installed Renewable Electricity Capacity in MW
1 This value reflects the installed solar capacity in MW on 1 October 2013.
future market for renewable energy investment. Various small hydropower plants and a pilot 50 MW wind powerplant are currently under development (SEECN, 2013). With the implementation of the EU Directive 2009/28/EC by the Energy Community Ministerial Council in 2012, the for-mer Yugoslav Republic of Macedonia committed itself to promoting renewable energy sources and to a national bindingtarget of a 28 percent share of renewable energy in the gross final energy consumption by 2020 (EC, 2012). The Strategyfor Renewable Energy Resources Exploitation up to 2020, which was adopted in 2010, describes the country’s detailedplan to achieve the national renewable energy sources target with an older target of 21 percent (Government of Mace-donia, 2010). The most recent Energy Law, adopted in 2011, is the main legislative document for the energy sector. Itcovers the regulation of electricity, renewable energy and also of oil and gas. Along with bylaws, rulebooks
and regu-lations, such as the Regulation on Preferential Electricity from Renewable Energy Sources and the Regulation of Tariffsfor Electricity, the most recent amendment to that law also defines the legal environment for renewable energy policyin the former Yugoslav Republic of Macedonia. The former Yugoslav Republic of Macedonia’s legislation provides furtherincentives for investors. Operators producing electricity from renewable energy sources have priority in selling theirelectricity to the grid. But connection to the grid appears to be non-discriminatory compared to other forms of electricitygeneration depending on the decision of the Transmission System Operator, MEPSO. Foreign investors may be exemptof custom duties and there is a relatively low corporate income tax of 10 percent, with undistributed profits being exemptof the tax (PWC, 2012). The Government of the former Yugoslav Republic of Macedonia has capped the overall installedcapacity of privileged producers using renewable energy sources to avoid an overload of the grid. The limits for maximuminstalled capacity in the former Yugoslav Republic of Macedonia are 150 MW for wind, 2 MW for solar PV (<50KW), 8MW for solar PV (>50 KW), and 10 MW for biomass (Government of Macedonia, 2010). Power plants using renewableenergy sources are required to obtain a concession, which is issued by the Ministry of Economy or a local municipality.In addition, a project developer has to apply for several other licences, e.g. energy generation licence (issued by theEnergy Regulatory Commission) and a ‘guarantee of origin’, in order to receive the feed-in tariff (issued by the EnergyAgency of Macedonia). According to the Agency for Foreign Investment and Export Promotion, 70 percent of the tech-nical hydro potential is currently open for investment (Invest in Macedonia, 2013).
Legislation and policy
Feed-in tariff in the former Yugoslav Republic of Macedonia
Energy Regulatory Commission of the former Yugoslav Republic of Macedonia (2013).
Eligible technologiesAdditional conditionTariff granted in /MW-h
<50 MW
89.00 Solar
<50 KW>50 KW and <1 MW
160.00120.00 Hydro <10 MW
produced electricity <85 MW-hproduced electricity >85 and <170 MW-hproduced electricity >170 and <350 MW-hproduced electricity >350 and <700 MW-hproduced electricity >700 MW-h
<3 MW
2 Electrical power produced from biogas power plants are also eligible to receive a feed-in tariff (Energy Regulatory Commissionof the former Yugoslav Republic of Macedonia, 2013).3 Investors can access detailed rulebooks on ‘Renewable Energy Sources’, on “Renewable Energy Sources for Electricity Generation,and on ‘The Method of Obtaining Status of Preferred Generator of Electricity, Generated from Renewable Energy Sources’. Allare available in English at: www.ea.gov.mk/projects/unece/en/legislation.html.
 The former Yugoslav Republic of Macedonia
Ministry of Economy
- Responsible for development and implementationof the national energy legislation www.economy.gov.mk/
Energy Agency
- Prepares energy strategies, development plans andprogrammes, with particular emphasis on energy ef-ficiency and usage of renewable energy sources - Responsible for issuing guarantees of origin for re-newable energy electricity producers www.ea.gov.mk/
Energy Regulatory Commission
- Energy regulator responsible for regulating the en-ergy sector- Responsible for developing and adopting regula-tions and rulebooks for renewable energy feed-intariffs - Issues licences in the energy sector, e.g. licence forelectricity generationwww.erc.org.mk/
Electricity Transmission Operator (MEPSO)
- Transmission System Operator responsible for theoperation, maintenance, development, and connec-tion of the electricity grid as well as transmission of electricity - With its subsidiary, the Electricity Market Operator, itfunctions as a market operatorwww.mepso.com.mk/en-
- An entirely state-owned joint stock company andthe country’s biggest energy electricity generator. Total capacity of 800 MW in thermal production andseven hydropower plants of 530 MWwww.elem.com.mk
Invest Macedonia
- State-owned Macedonian foreign investment pro-motion agency responsible to attract, consult and fa-cilitate potential investorswww.investinmacedonia.com/
Opportunities to finance renewable energy projects in FYR of Macedonia
Financing organization DetailsWebsite
Western Balkans Sustainable Energy Financing Facility
Provides loans of €2 million to €5 million via localbanks (Ohridska Banka AD Ohrid or IK Banka ADSkopje) for private investment in energy efficiency andrenewable energy projects. Loans can cover up to 100percent of the investment costs.www.webseff.com/
Western Balkans Sustainable Energy Direct Financing Facility(WeBSEDFF)
Local small and medium enterprises with sound finan-cial and economic structure and sufficient means of equity capital can apply for direct loans from the Euro-pean Bank for Reconstruction and Development’sWestern Balkan Sustainable Energy Direct FinancingFacility of €2 million to €6 million.www.websedff.com
Green Growth Fund
Provides direct and indirect (through financial inter-mediaries) financing for small scale renewable energyprojects usually not larger than €50 million.www.ggf.lu/

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->