Key changes under Macedonia’s new Energy Law

Reforms introduced by the new Energy Law, which entered into force in May 2025

This is a modern European law that practically implemented in Macedonia the EU's so-called "Clean Energy" regulatory package, which promotes the decarbonization of the energy sector and an increased share of energy produced using renewable sources (RES). With this law the foundations have been laid for full alignment with European energy policies.

Тhe new law envisages a structured process of integration of RES and batteries, in order to maximize the available capacities and give investors greater predictability for realization of their projects.

However, given that production from renewable sources is erratic, especially from solar and wind power plants, transmission and distribution system operators, i.e. MEPSO and Elektrodistribucija, now will have greater responsibilities for ensuring sufficient flexibility and maintaining the stability of the systems. In terms of flexibility, new actors are emerging that are smaller and more dispersed, such as active consumers, energy communities, aggregators, etc.

Another important provision is that from January 1, 2026, MEPSO and Elektrodistribucija must enable a change of supplier within 48 hours.

Smart Metering

The law envisages development of smart technologies, such as introduction of a smart meter system. These meters should provide consumers with more detailed information about their energy consumption throughout the day, in 15-minute intervals, so that they can adjust their consumption behavior according to the needs of the systems. This is a technical prerequisite for implementation of other concepts in the law that relate to flexibility of the networks and services that users can offer or exchange with each other.

The introduction of a smart meter system is complex and expensive process that begins with preparation of a feasibility study to assess the justification of the project by Elektrodistribucija. That study than should be forwarded to the Regulatory Commission, which, together with its opinion and recommendations, submits it to the Government that makes the decision whether to implement the smart metering system or not.

In case of a negative result of the study, it is repeated by Elektrodistribucija within 4 years. In case a decision is made to introduce smart meters, Elektrodistribucija will be able to start purchasing the meters and the necessary technologies, followed by a procedure for replacing the meters in the field. The entire process, following the Government's decision, should be implemented within 10 years, Elektrodistribucija having to replace at least 70% of the meters in the first 7 years.

However, it is still permitted to use estimated consumption for invoicing by the supplier, which should be equalized to actual consumption once every three months. If the estimate deviates from actual consumption, the invoices should be corrected.

Active Consumers and Energy Communities

After acquiring smart meters, consumers gain opportunities to play more active role in the energy system, depending on their technical capabilities or consumption needs. This is especially valid, for example, for consumers who have installed photovoltaics, or batteries, or own electric vehicles whose batteries could act as mini energy storage. To become active consumers, the consumers will have financial incentives like cheaper energy, reduced network fees, etc.

Additionally, consumers will be able to join together in so-called energy communities. These are non-profit organizations that will enable users to exchange energy among themselves. For example, energy produced by one user's photovoltaics can be used by another, and it can also be used by the same user in another location. Each photovoltaic user has more production than consumption at certain hours, so that surplus could be used by another member of the energy community. Or, if a user installs photovoltaics on a weekend house, when there is nobody there, it will be possible the energy produced there to be used at home.

Energy Storage and Grid Modernization

Electricity storage plays an increasingly important role in ensuring grid flexibility. Storage facilities should act as consumers when there is too much energy in certain regions at a certain time, or as producers when additional energy is needed to maintain system balance.

Storage can be carried out as a separate activity, which requires a license from the Regulatory Commission, or by existing providers of other energy activities, in case they also have an energy storage system installed. In doing so, the storage operator can buy and sell energy on the market, can provide energy storage services to another market participant, and can also offer system services to MEPSO or Elektrodistribucija.

Additionally, all new solar and wind power plants must also incorporate a battery system of at least 20% of the plant's power.

Investments in Renewable Energy

All those who intend to build solar or wind power plants, or battery systems, with an installed capacity above 1 MW, must first submit an initiative to have their projects included in the Annual Plan which is adopted by the Government. Once included in the plan, they submit a request for authorization to carry out the construction, which authorization is in turn conditioned by appropriate construction permits and guarantees for realization of the project. This reduces the possibility of uncontrolled construction, as well as leasing of grid capacity by unserious investors.

It is important to note that the law also introduces certain technical restrictions regarding the possibilities for connecting energy facilities. Thus, in the future, new power plants will not be able to be connected to the distribution network if, at the points of connection of the distribution and transmission systems in the relevant regions, the total capacity of connected producers reaches 80% of the power of the transformers, as well as if the energy supplied to the transmission system exceeds 10 MW.

This approach is advantageous for investors because they will have the opportunity to know in advance whether specific projects will be implemented and finalized or not and will eliminate uncertainty regarding regulatory requirements.

Obtaining authorization will guarantee that their facilities will be connected to appropriate energy system, as well as that they will receive all necessary permits, of course, if they meet all the stipulated conditions that are transparently published.