The new Law on the use of energy from renewable sources has been adopted, marking one of the most significant energy sector reforms in Macedonia in the last decades. For the first time, renewable energy sources are regulated through a particular law (Lex Specialis), establishing a modern, European-aligned and predictable legal framework for clean energy development.
With the adoption of this law, the state sends a clear message that renewable energy sources are becoming one of the key pillars of the national energy policy, aimed at strengthening energy security, reducing dependance on energy imports, initiating new investment cycle and accelerating the green transition.
The Law transposes the latest European regulations into national legislation, including the Directive on the promotion of the use of energy from renewable sources, whose harmonization and adoption represent part of the Reform agenda. Within the energy transition process, measures and activities are envisaged to diversify the economic model through knowledge-based development and more efficient use of resources, encourage investment, develop green and smart infrastructure, provide clean energy, enhance skills development, and gradually reduce dependance on fossil fuels.
The new legal framework aims to strengthen security of energy supply, enable the fulfillment of obligations undertaken through the ratification of the Paris Agreement, contribute to achieving national binding targets for the share of renewable energy in gross final energy consumption, and ensure compliance with national strategic and planning documents in the energy sector, including the Integrated National Energy and Climate Plan.
The Law is structured into 16 chapters, regulating the competencies of institutions, national renewable energy targets, support measures, guarantees of origin, the status of consumer-producer, energy communities, the use of renewable energy in heating, cooling and transport sectors, cross-border cooperation, licensing and supervision.
The introduction of the modern Two-way Contract for Difference mechanism is among the most significant innovations. This model provides financial predictability for investors, guarantees minimum income for producers, and at the same time limits excessive profits during periods of high market prices, creating additional protection for citizens and the economy.
The Law establishes a transparent, non-discriminatory and competitive system for allocating support measures through feed-in tariffs and market premiums, enabling more efficient use of renewable resources, attracting new investments, encouraging entrepreneurship, creating new jobs and introducing modern technologies.
For the first time, the Law also regulates Net metering and Net billing mechanisms, creating conditions for households, companies and institutions to actively produce, use and manage electricity generated from renewable sources.
For the first time, a clear legal framework is also established for the creation and operation of citizen energy communities, through which citizens, municipalities, and companies will be able to voluntarily join together for the joint production, storage, consumption, and sale of electricity, as well as for the realization of local energy projects that will bring direct economic, environmental, and social benefits.
The Law further strengthens the national framework for guarantees of origin for electricity generated from renewable sources. Its adoption creates conditions for the national electricity market operator MEMO DOOEL to become a full member of the European Association of Issuing Bodies (AIB) and to join the AIB HUB—the European network for cross-border trading of guarantees of origin. This will allow Macedonian green energy producers to have the possibility for their guarantees of origin to be recognized and traded on the European market, representing a significant step toward greater competitiveness and integration into the European energy system.
At the same time, following the Law’s entry into force, activities will begin to establish an auction platform for trading guarantees of origin, making the system fully operational.
The Law is expected to ensure:
- Long-term reduction of dependence on imported energy and energy products.
- Increased share of renewable energy sources (RES) in gross final energy consumption.
- Improved security of energy supply for end consumers.
- Diversification of energy production.
- Achievement of climate and energy targets for specific periods defined in the Integrated National Energy and Climate Plan.
- Reduction in the use of fossil fuels and greenhouse gas emissions, and increased utilization of renewable energy sources for environmental protection and climate change mitigation.
- Allocation of investment support measures for renewable energy production in a transparent, non-discriminatory, competitive, cost-effective, and efficient manner, aligned with strategic and planning documents in the energy sector.
- Development of entrepreneurship and creation of new jobs related to renewable energy production.
- Support for the development and use of new technologies and encouragement of consumers to increase both the use and production of renewable energy for their own needs.
With the adoption of the Renewable Energy Sources Law, Macedonia establishes a modern legislative framework that provides greater legal certainty for investors, new opportunities for citizens and businesses, more efficient institutional procedures, and full alignment with European renewable energy policies. It lays the foundation upon which a new Macedonian energy sector will be built—cleaner, more competitive, more sustainable, and more secure for citizens, economy and future generations.
With regards,
Ministry of energy, mining and mineral resources