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/17th October 2019, RENEWABLE MARKET WATCHTM/ The Ministry of Economy of North Macedonia informed that a total of 44 bids have been received on a tender for the construction of solar photovoltaic power plants on private land with 27MW total installed capacity. Furthermore, for solar photovoltaic power plants on state land, 126 bids from interested investors have been registered for 62MW of total installed capacity. The Government will support investors with administrative approvals and complete all necessary procedures for the change of land status and developing detailed zoning plans of the sites for solar power plants deployment. The Republic of North Macedonia is very poor in primary energy resources. There are two major open-pit coal mines that supply two thermal power plants (TPPs) (TPP Bitola and TPP Oslomej), and two smaller open-pit mines that produce lignite for the industry and other sectors. The coal deposits of the mines adjacent to the power plants are of shallow heat value (lignite). Their capacities are limited, and the plants are due for retirement in about 10 - 15 years, according to calculations of the research department of Renewable Market WatchTM. The other key fossil fuels are oil and natural gas, which are imported. There is only one oil pipeline transporting crude oil from Thessaloniki, Greece to Skopje, North Macedonia's capital.

Renewable Energy Incentives in North Macedonia

In 2010, because of the country's heavy dependence on imported energy, the bad conditions of the energy production system and the inefficiency of energy production and use, North Macedonia adopted a Strategy for Energy Development until 2030. The programme goals are to modernise existing infrastructures, build new facilities, use renewables and natural gas, and favour domestic resources for electricity production. It also aims to improve energy efficiency, introduce economic energy prices and integrate the energy sector in the regional and European markets.

On 18 October 2012, Budva, Montenegro Today, the 10th Energy Community Ministerial Council agreed on implementing EU Directive 2009/28/EC on the promotion of renewable energy (RES Directive) by the Energy Community. With the decision, Albania, Bosnia and Herzegovina, Croatia, Former Yugoslav Republic of Macedonia, Kosovo*, Moldova, Montenegro, Serbia and Ukraine commit to a binding share of renewable energy as part of their overall consumption in 2020. The shares for the nine Contracting Parties were calculated based on the EU methodology and reflect an equal level of ambition as the targets fixed for the EU Member States. The targets for the share of renewable energy in Contracting Parties in 2020 are the following: Albania 38%, Bosnia and Herzegovina 40%, Croatia 20%, North Macedonia 28%, Moldova 17%, Montenegro 33%, Serbia 27%, Ukraine 11%, Kosovo 25%.

In November 2015, the Government adopted an action plan for RES that runs until 2025, with a vision until 2030 (“Action Plan”). The Action Plan regulates the projections for the years 2020-2025-2030 for the contribution of RES to the gross final consumption of energy. The share of RES in the gross final consumption of energy that can be achieved in this scenario amounts to 21.01% in 2020; 25% in 2025; and 28% in 2030. The contribution from hydropower plants amounts to 158 ktoe in 2020, 228 ktoe in 2025 and 288 ktoe in 2030, from wind power plants amounts to 9 ktoe in 2020, 26 ktoe in 2025 and 53 ktoe in 2030 and from photovoltaic power plants amounts to 3 ktoe in 2020, 4 ktoe in 2025 and 11 ktoe in 2030.

Key Solar Photovoltaic Projects in North Macedonia

North Macedonia plans to move decisively forward with decarbonisation are making a big leap forward. The EBRD is lending €5.9 million to ELEM, the state-owned electricity company, to build the first large-scale solar power plant with a total capacity of 10 MW on the site of an exhausted lignite coal mine. The company will meet the rest of the total costs estimated at €8.7 million. The new solar plant is ELEM’s first and will be the largest in the country. Once operational it will produce nearly 15 GWh a year of electricity and displace 12,177 tonnes of CO2 a year.

New solar photovoltaic solar projects with 25MW power capacity shall be deployed in Sveti Nikole and another with 10MW power capacity in Makedonski Brod.

North Macedonia has almost 19MW of installed capacity of solar power capacity nowadays but has recently approved a program that plans to install new 200MW solar power plants by the end of 2021.

The more information about the solar photovoltaic market in North Macedonia, including full contact details of renewable energy project owners, developers and stakeholders, you may read here: ’Western Balkans Solar Photovoltaic (PV) Power Market Outlook 2019÷2028’. Furthermore, you may receive up to 4 quarterly updates.

For better understanding about benefits from using our reports you may read here: Benefit List - Reports of Renewable Market Watch - 2019

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