Renewable electricity capacity in North Macedonia increased by 551.2 MW over the last two years, of which 399 MW in 2023 Contact online >>
Renewable electricity capacity in North Macedonia increased by 551.2 MW over the last two years, of which 399 MW in 2023
North Macedonia is maintaining the top spot among Western Balkan countries in the energy transition. The investment wave was spurred by a combination of legal reforms and the photovoltaic projects of state-owned power utility Elektrani na Severna Makedonija (ESM).
The Energy, Water Services and Municipal Waste Management Services Regulatory Commission (RKE) said it issued licenses last year for almost 399 MW in total for the production of electricity from renewable sources. The level was 162% higher than for the capacity installed in 2022.
“We registered a fascinating growth of 160% in newly installed electricity production capacity in just one year. RKE’s combined data indicates that the energy transition was taking place every day, namely every workday we have another 1.5 MW included in the electric power system of our country. With this pace of new electricity production capacities from renewable sources, energy independence has been significantly strengthened, that is, power imports have decreased by one third”, RKE President Marko Bislimoski said.
North Macedonia’s renewable electricity additions are equivalent to 1.5 MW per workday
The regulatory body estimated that the facilities installed over the past two years, comprising 551.2 MW, are capable of generating enough electricity to supply 175,500 households.
On the other hand, investments are hampered by a still complex administrative process, especially for grid connection, while the electricity network capacity is insufficient, according to a recent report. Its authors said prosumers, energy communities, and vulnerable citizens lack support.
Unrelenting support for investments in energy can impact biodiversity and food production.
Moreover, the attempt to build pumped storage hydropower plant Čebren has failed for the 14th time.
In cooperation with international financing institutions and development banks, the government is preparing a EUR 3 billion investment plan for a coal phaseout by 2030 and a just transition for the country’s coal regions.
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According to a World Bank study, over 1,000 people die each year as a result of air pollution in North Macedonia. At the end of 2019, the government led by Social Democrat Prime Minister Zoran Zaev adopted the Strategy for Energy Development until 2040, in line with global energy policies, especially those of the Energy Community.
As the world moves towards decarbonisation and green energy, North Macedonia is executing an ambitious national energy strategy, which foresees a 66% reduction of greenhouse gas emissions from the energy sector compared to 1990 by 2030. Lignite, which is used for more than a half of the country''s power generation, has been responsible for huge air pollution in the country in the last decade, particularly in winter. With the new energy strategy until 2040 the Balkan country, with a population of 2mn, is now aiming at phasing out coal, to focus on renewable energy sources and gasification projects.
The country''s biggest thermal power plant complex REK Bitola, which uses coal from the adjacent mine, has been the most important energy producer in the country for the last 40 years. However, it already reached the final years of its life, while the available quantities of lignite in the mines are decreasing gradually. Additionally, the quality of lignite is getting worse.
"Given the lifespan of REK Bitola, as well as reduced exploitation opportunities of lignite, it is clear that we can expect the closure of REK Bitola''s units, one by one by around 2030. The closure of the first block can be expected in 2025," the government said.
The government and the state-run power producer ESM are already taking concrete steps to find a solution to replace the electricity production from REK Bitola thermal power plant. At the moment, technical documentation is being drafted for the construction of several photovoltaic power plants at the site of the old mine in REK Bitola, with an installed capacity of 200 MW to 300 MW, the government told bne IntelliNews. Construction of a gas-fuelled power plant with capacity of 200 MW to 450 MW is also planned, taking into account that the construction of the gas network in the country is advancing at an accelerated pace. The planned investment is expected to be implemented in the next two to five years.
"We should be aware that the energy transition and decarbonisation of the Macedonian economy is a process with financial implications. The implementation of the strategy''s programme, which is in the final phase of preparation, envisages investments in the energy sector of approximately €4.7bn in the first five years," the government said.
The projects will be implemented through various models, including budget funding, private investment, concessions and public-private partnerships, as well as through grants and donations by international financial institutions. Government investments would range from 10% to 15%.
As in other parts of the Central and Eastern Europe (CEE) region, notably Poland, there are concerns about the future of communities in areas that rely on coal mining or coal-fuelled power plants.
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