National electrification rate (2000): 97.4%The 220 kV network is not very developed. It consists of three overhead lines (OHLs) and two substations (SS). Two OHLs connect SS Skopje 1 and TPP Kosovo A, but only one is in operation. There has been very limited exchange between neighbouring power systems over these two OHLs. Because of the present role of the 220 kV network, and its limited possibilities for improvement, there are no plans for its upgrade.The main role of the 400 kV network is to connect the major production facilities in the south of the country with the major consumer base in the north. Besides that, through the three 400 kV OHLs (two with Greece and one with Kosovo), the 400 kV network provides interconnection to neighbouring power systems.The 110 kV network had been used as the backbone of the transmission network of the country. As the 400 kV network developed, and as consumption grew, the role of the 110 kV network has changed. Nowadays, parts of this network have a regional or even local role.
In 2006, Macedonia ratified the Energy Community Treaty. The strategic priorities of Macedonia in the energy sector and provisions that transpose the acquis communautaire are incorporated in the new Energy Law, adopted by the Parliament in 2006. The new Energy Law clearly targets EE and RES by including a special chapter. The Law contains provisions about the development of a Strategy for improvement of EE for a period of ten years and a 5-year Program for the implementation of the Strategy. The Law includes provisions for EE in the construction of new and reconstruction of existing facilities, including energy audits and buildings certificates. It also calls for applying technical specifications and standards for efficient use of fossil fuels on new motor vehicles, facilities for generation of electricity, heat and other energy intensive industrial capacities that are sold and/or imported on the territory of the Republic of Macedonia. The scope and provisions of the Energy Law provide an adequate legal framework for the energy efficiency policy of Macedonia. There are on-going efforts for developing and adopting the secondary legislation and technical regulations, as only the labelling of household appliances is regulated so far.To address some of the existing barriers to energy efficiency, the government of Macedonia initiated The Sustainable Energy Project, supported by the Global Environment Facility (GEF) and the World Bank. The Sustainable Energy Project is aimed at introducing two appropriate instruments for financing energy efficiency and small scale renewable initiatives, both based on market principles: ESCOs and loan/guarantee facility. Utilities and local banks are involved in programme implementation.The legal framework for exploitation of renewable energy sources is the Energy Law. The adoption of a Strategy for Renewable Energy Sources is foreseen for 2008.Following the provisions of the Energy Law, preferential feed-in tariff for purchase of electricity generated by small hydropower plants and by wind power plants were adopted by the Energy Regulatory Commission in 2007. Feed-in tariffs are currently in place for small hydropower, wind, solar, and biomass/biogas, ranging in price from 4.5 €cents/kWh for hydropower, to 46 €cents/kWh for small photovoltaic.
HydropowerDepending on hydrological conditions in the year, 15 to 18% of the annual electricity production in Macedonia comes from hydro power plants. Macedonia has a significant potential for construction of small hydro-power plants (with installed capacity of less than 5 MW in size) located at roughly 400 sites throughout the country, which have been already identified, and which may meet over 10% of the country’s current electricity needs. An estimated 1088 GWh could be generated annually from this resource, 17.5% of the total theoretical potential of the country’s hydro resource.Geothermal energyGeothermal energy accounts for 2.4% of total production in the heat production sector. There are possibilities for increasing the exploitation of existing and new geothermal sources. Macedonia is quite rich in geothermal sources suitable for different uses except for the production of electricity. Proven thermal potential is estimated to be 220 MWt. The Macedonian Geothermal Association has identified eight existing geothermal projects for expansion and rehabilitation, mainly those used for geothermal heat in greenhouses, and for space heating.Solar energyThe solar energy is being used at a symbolic level for domestic water heating. But the geographical position and climate in Macedonia offer a very good perspective to intensify the use of solar collectors, with the country having one of the most favourable solar regimes in Europe. The annual average for daily solar radiation varies between 3.4 kWh/m2 in the Northern part of the country (Skopje) and 4.2 kWh/m2 in the South Western part (Bitola). The first private photovoltaic plant in Macedonia opened in 2009, a 10.2 kW installation near Skopje.Biomass energyThere is relatively high potential in the country for utilising biogas from animal manure for energy generation purposes, as well as growing crops for production of biofuel. There is also a significant potential for wood pellet use in the residential heating sector over firewood. An estimated 180,000 cubic metres of wood waste are produced annually, a potential which is entirely unutilised.Wind energyAccording to the Preliminary Atlas of the Winds in Republic of Macedonia, 15 possible locations with sufficient energy potential for construction of wind power plants with foreseen installed capacity 25 MW to 33 MW were identified. Average wind speeds of 6.5 – 8.5 m/s at 80m have been recorded in mountainous regions, with an average of 7 m/s in the in south-eastern regions of Macedonia.On the basis of the Atlas, a Monitoring Programme of the Wind Potential in the Republic of Macedonia is in implementation from 2006, with a grant from the Norwegian Government.