North Macedonia is actively working to decarbonize its energy sector and transition towards renewable sources like- solar, wind, hydro and biomass. The country has set a target of meeting 27% of total energy needs from renewables by 2025. This shift presents new business prospects.
North Macedonia receives abundant sunshine year-round, making energy power an attractive prospect. Opportunities exist for companies across the solar value chain from module manufacturing to project development, EPC services and maintenance. Over 100MW of solar farms have been installed so far, with many more in the pipeline.
Similarly— untapped potential remains in small hydro power given North Macedonia’s mountainous terrain. Opportunities lie in modernizing aging hydropower infrastructure and constructing new mini and micro-hydro plants. Wind power also holds promise, though high upfront investment costs pose challenges.
The North Macedonia government aims to facilitate private sector participation through measures like net metering for rooftop solar, priority grid access for renewable energy producers and tax incentives for clean technology investments. However, inconsistent policy support and lack of long-term clarity on tariffs can deter investors.
North Macedonia’s push to decarbonize its energy mix through sustainable indigenous resources opens up new avenues, though the country must address policy and market barriers to fully realize renewables’ job creation and economic growth potential. The share of small, private-owned companies, mainly small hydropower, solar PV, and biogas plants, in electricity generation in North Macedonia is increasing.
North Macedonia has been on a commendable path to reinforce renewable energy in its overall energy, and the government has recently adopted or is in the process of drafting key strategies to support European Union (EU) legislation.
There are opportunities for investment in the renewable energy sector in North Macedonia. However—IRENA’s analysis identified specific barriers and associated risks holding back private-sector investment in renewable energy in North Macedonia such as- the lack of a supportive regulatory framework, limited access to finance, and the absence of a clear and stable policy framework.
Additionally—the high cost of doing business which is mainly caused by a sharp increase in energy prices, has eroded the competitive capacity of Macedonian enterprises. Therefore—potential investors should carefully consider the existing challenges and the support provided by the government to make informed investment decisions.
