Energy Law at North Macedonia
North Macedonia has been actively reforming its energy legal framework to align with the European Union's Clean Energy Package, aiming to modernize its energy sector, promote renewable energy, and ensure a sustainable and competitive energy market
⚖️ Key Energy Legislation
1. Energy Law (2018)
Enacted in May 2018, this law harmonizes North Macedonia's energy legislation with the EU's Third Energy Package. It regulates energy policy objectives, energy activities, construction of energy facilities, and the functioning of energy markets, including electricity, natural gas, and heating. The law emphasizes sustainable energy use, energy efficiency, and the promotion of renewable energy sources. It also establishes the Energy Regulatory Commission's role in overseeing the energy sector.
2. Law on Renewable Energy Sources (2023)
Adopted in 2023, this law aims to simplify procedures related to renewable energy sources, in line with the EU's Clean Energy Package. It introduces mechanisms such as energy purchase agreements, contracts for difference, and premium contracts to support renewable energy generation. The law also establishes a category for "self-producers of renewable energy," allowing small and medium-sized enterprises (SMEs) and residential customers to install up to 500 kW of capacity for self-consumption and sell excess energy back to the grid.
🔄 Recent Developments
Draft Laws on Energy and Renewable Energy Sources (2024): In March 2024, the government endorsed draft laws on energy and renewable energy sources to further align with EU regulations. The draft Law on Energy focuses on ensuring a secure, competitive, and sustainable energy supply, while the draft Law on Renewable Energy Sources aims to simplify licensing procedures and introduce statistical transfers of renewable energy shares with EU member states and Energy Community contracting parties.
Energy Storage Integration: The draft Law on Energy includes provisions for operators of battery energy storage systems to participate in the electricity market. This initiative is part of the country's efforts to manage excess renewable energy and address fluctuations in supply and demand.
🌱 Renewable Energy Support Mechanisms
Premiums and Feed-in Tariffs: The Energy Law introduced premiums as a support measure for electricity producers using renewable energy sources, alongside the previously available feed-in tariffs. These mechanisms aim to incentivize investment in renewable energy projects.
Strategic Projects: The draft Law on Energy proposes declaring certain energy projects as strategic, making them eligible for state aid. This provision is intended to encourage investment in key areas such as high-voltage power lines, energy storage, and smart grids.
⚠️ Environmental Considerations
Environmental organizations have raised concerns about proposed changes to the Law on Agricultural Land, which could allow the conversion of fertile land into construction sites for renewable energy plants. These changes may impact agriculture and ecosystems, highlighting the need for careful planning in the transition to renewable energy.
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