New Energy Legislation

North Macedonia’s Renewable Energy Surge: New Laws Intend to Harmonize National Legislation with EU’s Energy Standards

In an effort to harmonize the national legislation with the European Union’s Clean Energy Package, the Ministry of Economy of North Macedonia announced the drafts for a new Law on Energy and the Law on Renewable Energy Sources.

North Macedonia’s significant growth in solar power capacity has led to an increase in the newly installed renewable electricity capacity. Thus, the surge in the production of electricity from renewables has caused a need for effective energy storage solutions to manage excess output and address fluctuations in demand.

The draft Law on Energy offers local operators the chance to become active participants in the electricity market through the inclusion of battery energy storage systems. An investor who builds a battery system, or “storage”, will be allowed to participate in the market as storage operator and buy and sell electricity.

Moreover, the draft Law on Energy introduces the concept of declaring certain projects as strategic, making them eligible for state aid. This strategic project status, eligible for state aid, further encourages local companies to invest in key areas like high-voltage power lines, energy storage, and smart grids, fostering innovation and economic growth.

At the same time, North Macedonia is actively developing a draft Law on Renewable Energy Sources, intending to simplify the licensing process and reduce administrative obligations. Notably, the power plant registry of North Macedonia is set to exclude smaller installations of 2 kW or less.

Finally, North Macedonia seeks to harmonise its legislation with that of the European Union by allowing statistical transfers of renewable energy shares with Energy Community contracting parties and member states of the European Union. The draft Law on Renewable Energy Sources also focuses on active consumers, including “prosumers,” who both consume and produce energy.

As North Macedonia aligns with EU standards, companies can explore opportunities for enhancing their competitiveness and contributing to the country’s sustainable energy future.


The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.