In 2019, the Government adopted the Decree on Support Measures for Electricity Production from RES (“Decree”), which regulates the conditions and manner for determining the Premiums and Feed-in Tariffs.
Pursuant to the Decree, the Feed-in Tariffs could be awarded to privileged power producers that produce energy from hydropower plants, wind power plants, and biomass and biogas thermopower plants. Previously, Premiums could only be awarded to privileged energy producers that produce energy from wind power plants and photovoltaic power plants.
Furthermore, since the adoption of the Energy Law, several procedures for construction of photovoltaic power plants have been realised, such as:
- Construction of 35 MW photovoltaic power plants on state land;
- 10 MW photovoltaic plant in TPP Oslomej; and
- Construction of a photovoltaic power plant of 100 MW in the former coal mine TEC Oslomej.
With all these investments, as well as the planned photovoltaic power plant in REK Bitola, which is projected at 20 MW, it is expected that installed capacity will reach 200 MW, which is a strategic priority of North Macedonia. These developments confirm the commitment to invest in RES and further attract interested investors in this area.
As a most recent development, in May 2020 the Government announced that the tender procedure for awarding premiums for electricity generated by photovoltaic power plants on private land was completed. In total, 44 bids were submitted, and, after a thorough evaluation process, including deadlines for appeals, the Government signed agreements for right of premium usage with a total of 23 investors in 16 municipalities for a total of 21 MW. The investors will have three years to complete the construction of the photovoltaic power plants, and after completion of the construction, an agreement for premium usage for 15 years will be signed.
To further improve the conditions for large investments in general, particularly for foreign capital, the Parliament of the North Macedonia in January this year adopted the Law on Strategic Investments of North Macedonia (SIL).
The SIL is the latest legal instrument designed to encourage, attract, and create conditions for conducting strategic investments in North Macedonia which offers new opportunities for the potential investors in general.
With this opportunity, potential investors in RES could initiate a large investment cycle in the country. This could have a positive impact not just in the energy sector as a strategic priority, but could improve the country's competitive advantages and economic growth as well as the living conditions of the citizens of North Macedonia in general.