Skopje, 7 October 2023 (MIA) - Thanks in particular to its proactive regulatory authority, transmission system operator and market operator, North Macedonia is well positioned to participate in the pan-European electricity market and system. The launching of the day-ahead electricity market is a milestone in the electricity market reforms in the country, Deputy Director of the Energy Community Secretariat Dirk Buschle told MIA in an interview. 

He noted that North Macedonia took the lead in the Energy Community by initiating effective solar PV auctions in 2019.

Below is the full interview with Buschle, who participated on Wednesday at the Energy Community's Just Transition Forum in Skopje. 

Is North Macedonia doing enough to meet energy transition needs in terms of increased investments in renewable energy sources, particularly photovoltaic plants?

North Macedonia took the lead in the Energy Community by initiating effective solar PV auctions in 2019. By the end of 2022, numerous auctions for fixed feed-in premiums had been carried out, resulting in a total awarded capacity of 130 MW. North Macedonia has also adopted a net billing scheme for self-consumption, achieving a reported capacity of 130 MW, mostly solar PV, by mid-2023. However, the transposition of the Renewable Energy Directive remains incomplete. In line with best practices in other Contracting Parties, we recommend to adopt a dedicated renewable energy law as a stable foundation for further boosting investments in renewables. 

What does the new Clean Energy Package include, what is the implementation deadline, and how can the Energy Community help the country in this segment?

The Clean Energy Package in the Energy Community can be separated in two parts, one – complemented by so-called Network Codes and Guidelines and a Procedural Act – comprising rules for electricity markets and systems aiming at full and reciprocal integration of the Energy Community Contracting Parties in the EU’s internal electricity market – and the other one comprising the Renewables Energy Directive (REDII), the Energy Efficiency Directive and the Governance Regulation.  The former is to be transposed by 31 December 2023, whereas the deadline for transposing the latter expired on 31 December 2022. The Secretariat works very closely with all Contracting Parties in the transposition and implementation of these acts. It also cooperates with the institutions and bodies governing the electricity markets and systems in the EU, to help making the greatest extension of the EU’s internal energy market to date a success.

Where does North Macedonia stand in terms of necessary reforms? What is good, what does the country need to do to pick up, and what should be the next steps?

Thanks in particular to its proactive regulatory authority, transmission system operator and market operator, North Macedonia is well positioned to participate in the pan-European electricity market and system. The launching of the day-ahead electricity market is a milestone in the electricity market reforms in the country. That said, the timely transposition of the underlying Clean Energy Package rules, as adopted in the Energy Community, in Macedonian law is essential. If the country does not want to miss the deadline, the pace of the process should speed up. 

In the gas sector, the submission of the request for certification by the gas TSO, NOMAGAS, shows good progress in a long-standing cooperation with the Secretariat. The transposition of the REMIT Regulation recently is another success story. North Macedonia has also been among the first Contracting Parties that has adopted an integrated National Energy and Climate Plan (NECP). By June 2024, the Government will have to update this document, taking into account the comments provided by the Secretariat in accordance with the requirements of the Governance Regulation. The transposition of the Renewable Energy Directive is another urgent priority.

To what extent is the draft law on Climate Action aligned with the EU acquis in terms of carbon offset?

To the extent this question relates to the carbon fee envisaged by the draft Climate Law, the Secretariat is aware that work on this draft is still in progress. The Secretariat will submit its comments after receiving a mature draft from the Government. That said, the introduction of a price for carbon emissions is to be welcomed as it follows the universally acknowledged polluter-pays principle. In the Energy Community, discussions are currently ongoing about regional solutions for carbon pricing, modelled on the EU rules and meeting the requirements for exemptions from the carbon border adjustment mechanism (CBAM) in the electricity sector. 

Are electricity and natural gas markets in the Western Balkans really liberalised or is this only on paper? How far are we from their actual functioning?

The process of liberalisation of the energy markets in the Energy Community has been underway for years already, and have achieved important results in improving the market governance, e.g. by unbundling of the system operators. Important progress has also been made by North Macedonia in both the electricity and gas sectors. The opening of short-term markets in electricity and the full integration in the European markets and systems are and/or will be important milestones in taking this process forward. 

Valentin Jankovski

Photo: Frosina Naskovikj