North Macedonia Introduces First Dedicated Renewable Energy Law With CfD Framework

North Macedonia has officially adopted its first dedicated renewable energy law, establishing a comprehensive regulatory framework aimed at attracting long-term capital to the sector. The legislation formally aligns the national legal structure with the European Union’s Renewable Energy Directive (RED II) and introduces three primary market mechanisms: two-way CfDs, competitive capacity auctions, and corporate power purchase agreements (PPAs).

The transition to two-way CfDs marks a significant departure from previous support schemes. By offering revenue stabilization over an extended period, the CfD model mitigates merchant risk, thereby improving project bankability and lowering the cost of capital. Nikola Bitrak, CEO of Colenco, noted that the increased regulatory certainty holds the highest value for developers and the investment community.

Furthermore, the new legal text provides definitions for emerging technologies, including agrivoltaics, floating solar installations, renewable hydrogen, and the co-location of generation with battery storage. However, the practical success of these reforms hinges on the subsequent administrative execution. The government must now focus on passing the necessary secondary legislation, streamlining the permitting processes, and upgrading the national transmission infrastructure to accommodate the new capacity.

Source: pv Europe