North Macedonia has adopted the Law on the Use of Energy from Renewable Sources, establishing a modern and predictable legal framework for clean energy development, aligned with European Union regulations. The new law, among other things, introduces a modern mechanism for two-way contracts for difference (CfDs), a transparent system of state support, net metering and net billing mechanisms, a clear regulatory framework for energy communities, as well as a system of guarantees of origin designed to enable their trading on the European market, the Ministry of Energy, Mining and Mineral Resources said in a statement. North Macedonia has also adopted the legislation needed to pave the way for electricity market coupling with the EU, the Energy Community Secretariat said.
The special law (lex specialis) represents one of the most significant reform steps in North Macedonia’s energy sector in the past few decades, according to the statement.
The law establishes a modern legislative framework that provides greater legal certainty for investors, new opportunities for citizens and companies, more efficient institutional procedures, and full alignment with European policies in the field of renewable energy. It transposes the latest EU rules, including the Renewable Energy Directive, the ministry said.
The law comprises 16 chapters that regulate the responsibilities of institutions, national renewable energy targets, support measures, guarantees of origin, prosumers, energy communities, the use of renewable energy sources in heating, cooling, and transportation, as well as cross-border cooperation, licensing, and supervision.
The introduction of a modern European mechanism for two-way contracts for difference ensures financial predictability for investors and guarantees a minimum income for renewable energy producers. At the same time, it allows for limiting excessive profits during periods of high market prices, providing additional protection for citizens and the economy, the ministry explained.
The law introduces a transparent system for awarding feed-in tariffs and market premiums
The law also establishes a transparent, non-discriminatory, and competitive system for allocating state support through feed-in tariffs and market premiums, enabling more efficient use of renewable energy sources and helping attract new investments, create jobs, and promote the use of modern technologies, the statement said.
For the first time, the law regulates net metering and net billing mechanisms, creating conditions for households, companies, and institutions to actively produce, consume, and manage electricity from renewable energy sources.
Clear rules for energy communities are being introduced
The law also introduces a clear regulatory framework for the establishment and operation of energy communities, enabling citizens, municipalities, and businesses to jointly produce, store, consume, and sell electricity, as well as implement local energy projects, the ministry said.
By strengthening the framework for guarantees of origin of electricity produced from renewable energy sources, the law creates conditions for the National Electricity Market Operator (MEMO) to become a full member of the Association of Issuing Bodies (AIB) and to access its AIB Hub, a European network for cross-border trading of guarantees of origin.
North Macedonia’s power market operator MEMO is expected to join a European network for cross-border trading of guarantees of origin
This will allow for guarantees of origin of North Macedonian green energy producers to be accepted and traded on the European market, marking a significant step toward greater competitiveness and integration into the European energy system, according to the statement.
After the law enters into force, activities will begin to establish an auction platform for trading guarantees of origin, making the system fully operational, the ministry added.
Reducing dependence on fossil fuels, achieving climate goals, boosting investment in renewables…
The law is expected to reduce dependence on energy imports in the long term, increase the share of renewables in gross final consumption, improve security of supply for end consumers, and help diversify energy production.
At the same time, the law should help achieve targets set out in the Integrated National Energy and Climate Plan (INECP or NECP), while increasing the use of renewable energy, reducing fossil fuel consumption and greenhouse gas emissions, and supporting environmental protection and climate change mitigation.
It is also expected to encourage investment in renewable energy through a transparent and competitive support system, foster entrepreneurship development, create jobs, promote the adoption of new technologies, and increase energy production for self-consumption, according to the statement.
North Macedonia has moved closer to market coupling with the EU
Meanwhile, North Macedonia has notified the Energy Community Secretariat that it has completed the legal alignment necessary to pave the way for electricity market coupling with the EU, the Secretariat said.
The country has now entered the verification stage through which the Secretariat and the European Commission verify that the legislation – the Energy Integration Package – is aligned with the EU’s, and that the conditions are in place to proceed with the market integration, it added.
North Macedonia is the fourth Energy Community Contracting Party to enter the verification process, following Serbia, Montenegro, and Moldova, the Secretariat noted.
