Is the new Law on the Use of Energy from Renewable Sources a milestone for photovoltaics and other renewables in North Macedonia?
I would certainly describe it as an important milestone, although perhaps not because it fundamentally changes the market. North Macedonia has already seen significant growth in renewable energy, particularly solar PV, under the previous Energy Law.
The significance of the new law lies elsewhere. For the first time, renewable energy is regulated through a dedicated and comprehensive legislative framework rather than through various provisions of the Energy Law and secondary legislation. In doing so, North Macedonia has substantially aligned its regulatory framework with the EU Renewable Energy Directive (RED II) and the Energy Community acquis, providing a much clearer and more coherent basis for future investment.
What does this mean in practical terms for project developers and investors?
From the perspective of someone involved in project development and implementation, the greatest value of the law is the increased level of regulatory certainty. It introduces several concepts that have already become standard across European renewable energy markets, including renewable Power Purchase Agreements, Guarantees of Origin, renewable energy communities, energy sharing, agrivoltaics, floating photovoltaic installations, co-located energy storage and renewable hydrogen. These are not simply new legal definitions; they are mechanisms that support new investment models and improve the bankability of projects.
North Macedonia charts a course for European hydrogen integration
Equally important is the transition towards more market-oriented support mechanisms. The introduction of competitive auctions and two-way Contracts for Difference (CfDs), implemented through market premium schemes, represents a significant evolution of the support framework. Rather than relying solely on fixed incentives, renewable projects will increasingly compete through transparent auctions while benefiting from long-term revenue stability. This is the direction that most European electricity markets have already taken and is generally viewed positively by both investors and financing institutions.
Is the legislation itself enough to unlock this potential?
No, legislation alone does not deliver renewable energy projects. Its success will ultimately be measured by how effectively it is implemented. The timely adoption of secondary legislation, efficient permitting procedures, institutional coordination and continued investment in transmission infrastructure will determine whether the law achieves its full potential. In that sense, I see this legislation not as the conclusion of the reform process, but as the beginning of a new phase in the development of North Macedonia's renewable energy market.
What are the most important provisions of the new law?
Rather than highlighting individual articles, I think the greatest strength of the law is that it changes the way renewable energy projects will be developed and supported. It provides a clearer and more predictable investment framework, which is exactly what developers and financial institutions are looking for. For example, the introduction of competitive support schemes based on auctions and Contracts for Difference moves the sector towards a more transparent and market-oriented model. At the same time, the planning of support programmes over several years gives investors greater confidence to prepare projects and secure financing, rather than relying on short-term policy decisions.
Does the law go beyond electricity generation?
Yes, and this is an important aspect. The law no longer focuses only on electricity generation. It creates the conditions for a more integrated renewable energy market by supporting corporate procurement, improving renewable electricity certification and recognising new technologies and business models. This is important because the future energy system will increasingly depend not only on adding renewable capacity, but also on how efficiently renewable energy is traded, stored and integrated into the electricity system.
Solar Macedonia president: “Quality standards are key to growth”
Overall, I see the most important contribution of the law not in any single provision, but in the fact that it creates a more mature regulatory environment that is better aligned with European market principles and provides a stronger basis for long-term investment.
Where do you still see shortcomings?
Overall, I think the new law provides a much stronger foundation for renewable energy development than the previous framework. However, as with any major reform, legislation alone cannot address every challenge, and there are still areas where further development will be needed.
One area is the regulatory framework for hybrid renewable energy projects. Across Europe, developers are increasingly combining technologies such as solar PV, battery energy storage and hydropower to optimise the use of existing grid infrastructure and improve system flexibility. While the law recognises several new technologies, further clarification would be beneficial on how hybrid projects will be developed, connected to the grid and operated in practice. Another important point is that many of the law's provisions still need to be translated into detailed secondary legislation. The overall framework is now in place, but investors will need clear implementing rules covering auction procedures, technical requirements, Guarantees of Origin, permitting processes and other practical aspects before the full benefits of the law can be realised.
Are the main challenges still legislative, or do they lie elsewhere?
I believe the biggest challenges facing renewable energy development are no longer primarily legislative. In practice, project delivery is often influenced more by grid availability, the capacity of the transmission network, permitting timelines and coordination between the different institutions involved in the approval process. These are the areas where efficient implementation will make the greatest difference. Finally, the renewable energy sector is evolving very quickly. Technologies such as large-scale battery storage, hybrid generation projects, renewable hydrogen and demand-side flexibility are developing faster than regulation can always keep pace. The legal framework will therefore need to continue evolving to ensure that it supports innovation while maintaining regulatory certainty for investors.
What will matter most in implementing the new law?
The priority now is to translate the legal framework into practical and efficient implementation. The law establishes a solid foundation, but its success will ultimately depend on how consistently and effectively it is applied. The first step is the timely adoption of the secondary legislation that will define many of the practical aspects of the new framework. Investors and developers need clear rules governing support schemes, auction procedures, technical requirements and administrative processes before they can make final investment decisions with confidence.
Solar Macedonia’s fourth annual conference draws more participants than ever
At the same time, continued efforts to simplify and coordinate permitting procedures will be equally important. Renewable energy projects typically involve several institutions, and improving coordination between them can significantly reduce development timelines and increase investor confidence.
And what role does grid infrastructure play in this?
Another key priority is the electricity grid. North Macedonia has excellent renewable energy potential and strong investor interest, but expanding renewable generation must be accompanied by investment in transmission infrastructure, system flexibility and energy storage. This will be essential to integrate larger volumes of renewable electricity while maintaining a secure and reliable power system.
25 years in solar innovation: coatings, PVT and what came next
Finally, maintaining a stable and predictable regulatory environment will be critical. Renewable energy projects are long-term investments, and developers, lenders and investors need confidence that the regulatory framework will remain transparent and consistent over the lifetime of their projects. If implementation follows the ambition of the new legislation, I believe North Macedonia is well positioned to continue attracting investment and accelerate its transition towards a cleaner, more competitive and sustainable energy sector.
Interview by Hans-Christoph Neidlein
