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Summer School

Energy Investment Regularion Conference 2008, Budapest


MACEDONIA
Energy Regulatory Commission of the Republic of Macedonia (ERC)

 

country map

 
Key Statistics (2008)

Population

2.04 million

GDP/Capita

$ 2,393

Generation

Fossil fuel: (5.063.993.195 kWh) 82,55%
Hydro: (1.070.199.327 kWh) 17,45%

Electricity Market Size

7.086.610.306 kWh (total consumption)

Installed capacity

Total: 1.551,82 MW (TPP – 1015 MW, HPP – 504 MW, SHPP – 42,82 MW)

Surplus Installed Capacity over Demand

 

Net Electricity Importer

2.615.525.692 kWh (import)

Natural Gas Imported

106.126.130 nm3 (not used for residential needs)

Natural Gas Consumed

105.398.201 nm3

Natural Gas Reserves

-

Summary
  • Established in July 2003, 5 Commissioners + 13 staff members (in 2004)· The Regulatory Commission consists of 5 members which are nominated by the Government of Republic of Macedonia and appointed by the Parliament of Republic of Macedonia for a five-year period.
  • The ERC regulates electricity, natural gas, district heating, oil and oil derivates and geothermal energy sector. The ERC has the following authorities: prescribes conditions for supply of certain energy types; prescribes methodology for establishment of prices, the tariff systems and makes decisions for prices of certain energy types; issues, changes, revokes and monitor the performance of the licenses for performing certain activities in the energy field; prescribes rules for connection of the energy networks; participates in dispute settlement and etc.
  • ERC is financed by own funds provided by the payment of fee in the total income of the companies performing energy activity and from the payment of issued licenses. The ERC is not financed from the national budget.

 

Industry and Market Structure

Electricity 

  • AD “Elektrani na Makedonija” (AD ELEM), share hold, state owned company holder of the license for performing the energy activity: generation of electricity.
  • AD MEPSO, share hold, state owned company, holder of the licenses for performing the following energy activities: transmission of electricity, operation of the power system, operation and organization of the electricity market, and wholesale supply of electricity for tariff customers;
  • EVN MAKEDONIJA AD Skopje (90% by EVN – Austria, 10 % state owned) holder of the licenses for performing the following energy activities: distribution of electricity, operation of the distribution system, generation of electricity, and retail supply of electricity for tariff customers;
  • TPP Negotino (crude fuel oil thermal power plant) share hold, state owned company for generation of electricity;
  • Up to now ERC issued 23 licenses for performing energy activities in the electricity sector, from which 11 are licenses for trade with electricity.
  • In the second half of 2007, upon written requests by the tariff customers connected to the transmission network, ERC issued brought 9 Resolutions for announcing the status of eligible customers of electricity to the customers connected to the transmission network.
Natural Gas
 
  • There are no domestic sources for production of natural gas and the supply of natural gas comes from imports. Gas has been imported from Russia since 1997, via a pipeline (capacity 800 million m3).
  • Gas is used by industrial customers and for district heat generation.
  • Gas distribution network and plan for a new CHP (powered by natural gas) is under consideration.
  • ERC issued 7 licenses for performing energy activities in the sector of natural gas, from which 4 are licenses for trade with natural gas.
  • On 29.08.2007 ERC brought a resolution by which the company “Toplifikacija AD” – Skopje is announced as an eligible customer of natural gas, which applied from 01.01.2008.
 
Current Energy Issues
  • Harmonization of the energy policy according to the Energy Community Treaty.
  • Energy Law (Official Gazette of RM, no.63/06 and 36/07).
  • New amendments of Energy Law in parliamentary procedure.

Electricity

  • The Grid Code for electricity transmission has been adopted in August 2006 (Official Gazette, 95/2006).
  • The Grid Code for electricity distribution and the Market Code will be adopted in the first half of 2008.
  • The new tariff system for electricity and the Rules on the conditions for supply of electricity will be adopted in 2008.

Natural Gas

  • The Grid Code for transmission of natural gas distribution will be adopted in the first half of 2008.

District heating

  • The Grid Code for distribution of thermal energy for heating will be adopted in the first half of 2008.

Renewable energy

  • On 09.02.2007 ERC brought the “Rulebook on the method and procedure for establishing and approving the use of feed-in tariffs for purchase of electricity produced from small hydro power plants” and Decision for establishment of the feed-in tariffs for sale of electricity produced and delivered from small hydro power plants, which have qualified as a preferential producer, published in the “OGRM”, no. 16/07.
  • On 16.05.2007 ERC brought the “Rulebook on the method and procedure for establishing and approving the use of feed-in tariffs for purchase of electricity produced from wind power plants” and Decision for establishment of the feed-in tariff for sale of electricity produced and delivered from wind power plant, published in the “OGRM”, no. 61/07.
  • On 22.11.2007 ERC brought the “Rulebook on the method and procedure for establishing and approving the use of feed-in tariffs for purchase of electricity produced from power facilities which use biogas got from biomass” and Decision for establishment of the feed-in tariffs for sale of electricity produced and delivered from power facilities which use biogas got from biomass, which have qualified as a preferential producer, published in the “OGRM”, no. 142/07
  • ERC will issue “Rulebook on the method and procedure for establishing and approving the use of feed-in tariffs for purchase of electricity produced from solar energy” in first half of 2008.

Contact
Energy Regulatory Commission of the Republic of Macedonia
Dimitrie Cupovski No.2, 4th floor, 1000 Skopje, Republic of Macedonia
Tel: +389-2-3233-580, Fax: +389-2-3233-586
Official website: http://www.erc.org.mk

 

 Laws

  Org. Chart of ERC

  • Chart

  Annual Report

  Grid Code

  License

  Methodology   

   Electricity Tariffs
   Natural Gas Tariffs
   District Heating Tariffs

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