Global experiences show that energy auctions are a powerful tool for accelerating the transition to renewable energy. This topic was the focus of the panel discussion "Energy Auctions as Catalysts for Renewable Energy Deployment in the Western Balkans," held as part of the Adria Summit, organized by the European Bank for Reconstruction and Development (EBRD), where the Minister of Energy, Mining, and Mineral Resources, Sanja Bozhinovska, participated.
Minister Bozhinovska discussed the experiences of Macedonia and the new support model the country is introducing to attract investment in renewable energy – "Contracts for Difference" (CfD). This approach, already proven effective in the EU, ensures stability, protection from market instability, and fosters real competition.
"We believe the CfD mechanism is the most suitable model for creating a secure and predictable investment climate. With support from EBRD and international partners, we are adapting this system to our market to create conditions for achieving the goal – 1.7 GW of renewable energy by 2030," stated Bozhinovska.
In recent years, Macedonia had limited success with feed-in tariffs and premiums, which caused the state to pay high subsidies, often above market prices. The energy crisis further revealed the weaknesses of this model – some power plants opted out of their privileged status to sell electricity on the open market.
Regarding plans for new auctions, the Minister highlighted that, in collaboration with EBRD, a detailed regulatory and financial analysis is being made for introducing CfD auctions that will be conducted transparently and enable direct competition among investors.
She also emphasized the importance of international support:
"EBRD, the World Bank, Germany's KfW, and other institutions are our key partners. With their help, we are already investing in new solar and wind capacities, modernizing the transmission network, and opening new opportunities for green energy. EBRD alone has invested over 2.9 billion euros in Macedonia, which is proof of the trust and potential we have."
Alongside Minister Bozhinovska, the panel also featured Montenegro’s Minister of Energy, Admir Shahmanović, CWP Europe Vice President Maja Turković, UniCredit Bank Serbia's Director of Finance Svetlana Cerović, and the Executive Director of New Energy Solutions, Miloš Čolić. The panel moderator was Adil Hanif, Head of Sustainable Markets at EBRD.
The panel provided an opportunity for exchanging experiences and practices between Western Balkan countries and representatives from the private and financial sectors, aiming at improving regulations and increasing investments in clean energy.
Respectfully,
Ministry of Energy, Mining, and Mineral Resources
