Key Plans For North Macedonia’s Energy Future

North Macedonia is on the verge of significant changes in its energy sector, laying the foundation for energy independence. At a time when global energy challenges are increasingly present, the country faces the need to modernize its infrastructure and shift its focus towards renewable energy sources. To learn more about the plans and goals during this pivotal moment, we spoke with Sanja Božinovska, the Minister of Energy, Mining, and Mineral Resources of North Macedonia, who shared with us the vision, strategy, and concrete projects that will shape the country’s energy future.

Q: You recently took over the Energy, Mining, and Mineral Resources portfolio in North Macedonia. What is your main goal for the next four years?

A: Our primary goal is to strengthen domestic production capacities through serious multi-year and long-term investments in energy infrastructure and facilities that will guarantee the country’s energy stability and independence and ensure domestic energy production as a guarantee of the competitiveness of the Macedonian economy. We plan to implement capital investments, one of the new government’s priorities. The energy sector in North Macedonia has been neglected for a long time. Still, energy will have a special place for this government, and we will work diligently to achieve the country’s energy independence. In addition to building new energy production facilities, we plan to complete the process of energy interconnection with neighboring countries.

Q: How much renewable energy capacity does North Macedonia currently have, and where does the country’s greatest potential lie?

A: The green transition has begun, and a strong push for the construction of renewable energy (RES) capacity occurred at the start of the energy crisis. We ended last year with an installed capacity of 1,311 MW from renewable sources, most of which are hydropower plants – 720 MW. Of this, 587 MW comes from large hydropower plants and 133 MW from small ones. Right behind them are photovoltaic (solar) power plants, which have seen a real boom, and by the end of 2023, we had a capacity of 506 MW. Last year, we produced 2,173 GWh of electricity from renewable sources, which accounted for 33 percent of total production. Building new facilities, especially solar power plants, is a real challenge. Still, before we start issuing permits and licenses, we need to address the issue of energy storage, as it is already causing problems in the system.

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However, I want to emphasize that even though we have intensive development of RES capacity, all of it is owned by private companies that sell the produced energy to traders at market prices, meaning North Macedonia has no planned purchase of this electricity. A tiny portion of the electricity, produced from capacities operating under feed-in tariffs, is owned by the state but at very high prices, which is why this concept is being abandoned. Therefore, as a government, we aim to find a mechanism to purchase energy produced by private solar power plants and wind farms. Additionally, our goal will be to build state-owned renewable energy (RES) capacities because only then can we ensure energy stability. Of course, it is essential to be realistic and say that the energy transition is a process that takes decades, requires systematic investment, and must take into account the country’s current situation.

Q: What is your main plan for increasing renewable energy (RES) capacity? At this point, is it more important for the country to invest in RES plants or to modernize the electricity distribution network?

A: I would say both can be developed simultaneously. In the long term, there is a need to modernize the distribution network, which has seen very little work in recent years, leading to frequent outages and issues. The network can no longer balance solar and wind energy effectively. I must point out that over 1,000 megawatts of renewable energy are currently not operational due to the weak capacity of the network in the southern region. Therefore, the government has already signed a loan agreement with the EBRD to construct a new substation near Gevgelija and reconstruct a 110-kilovolt transmission line. As a quick solution to the problem, we plan to introduce a requirement for installing batteries to store the electricity produced while simultaneously working on modernizing the network. So, issuing permits to construct new capacity must be part of a holistic approach.

We also believe it’s crucial to balance renewable energy sources. In addition to photovoltaic plants, we should have as many capacities as possible to generate electricity from wind, water, biomass, and biogas, as each type of renewable energy has different production qualities and quantities depending on the time of day and the season. That’s why, in the first days of the new government’s mandate, we announced the construction of a new wind farm with a capacity of up to 400 MW, featuring more than 50 wind turbines. This will be the largest wind farm in the Western Balkans and will provide clean electricity for over 100,000 households.

Interview by Milena Maglovski