Investments in Energy – The Macedonian Case
Investments in Energy – The Macedonian Case

Author(s): Nataša Hroneska
Subject(s): National Economy, Energy and Environmental Studies, Economic policy, Environmental and Energy policy, International relations/trade, Economic development
Published by: Аналитика Тинк-тенк Организација
Keywords: North Macedonia; energy market; investments in energy; stability and profitability of investments; energy price; investment climate; legislative framework; renewable energy sources;
Summary/Abstract: Since independence at the beginning of 1990s and especially in the last several years, the most important issue to the development of the energy sector in Macedonia has been the lack of a substantial and sustainable investment model. This in turn has been reflected in the modest number of new energy capacities in the country. Most of Macedonia’s existing energy infrastructure was developed during the second half of the last century. The consequence of this investment stagnation, especially after the breakout from Yugoslavia, is a weak energy sector, overwhelmingly dependent on imports and uncompetitive in the regional energy market. Foreign investors come and go from the country. Facing different legal and administrative barriers few decide to invest, leaving many strategically important energy projects for Macedonia to wait for ‘better days’. In addition, both wholesale and individual consumers have experienced hardships in their businesses and everyday life, faced with poor energy supply, low quality transmission and distribution systems, combined with energy shortages and inefficient energy management. New capacities have been developed in the last two decades, but they are not enough to satisfy the increase in energy demand, or strengthen the energy position of Macedonia within Southeast European region.

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