HYDROPOWER POTENTIAL IN REPUBLIC OF MACEDONIA

1. HYDROPOWER POTENTIAL IN REPUBLIC OF MACEDONIA European HYDROPOWER Summit Bucharest 27-28 February 2012 Lazar Gechevski, Director Energy Agency of the Republic of Macedonia

2. General information for the Republic of Macedonia • 25.713 km2-area. • Population : 2,1 million. • The supply of energy is based on domestic fossil fuels and hydro power. • Electricity consumption is about 9.000 GWh. • Import of electricity 3.000GWh (500 М€/annually).

3. Final energy consumption for 2011 Cox

4. Production of electricity 72%

5. Needs and target • Need: Macedonia’s needs are around 9 TWh, but the domestic production of electricity from coal and water is only 6 TWh. This means that 30% should be imported. • Target: By introducing energy efficiency measures to decrease the energy needs and through promotion to increase the use of renewable energy sources. - while achieving the targets, the electricity price should be taken into consideration as an important factor

6. Price of electricity in Europe • Macedonia has the lowest electricity price

7. Legislation in Republic of Macedonia regarding the hydropower and other RES • New Energy Law (in force from 18.02.2011) • Strategy for energy development • Strategy for energy efficiency • Strategy for the use of Renewable Energy Sources • Action plan for Energy Efficiency • National feed-in Tariffs • Act for limitation of installed capacity • Rulebook for Renewable energy sources • Rulebook for obtaining status of preferential producer of electricity produced from highly efficient plants with combined production • Rulebook for issuing Guarantees of origin for production of electricity produced from RES and highly efficient plants with combined production

8. The procedure to become preferential producer from RES • The procedure involves various institutions where documents need to be obtained, often confusing process • The Energy Agency has the idea to transform this procedure into one-stop shop system • Most relevant institutions: • Energy Agency of Republic of Macedonia • Energy Regulatory Commission of Macedonia • MEPSO – electricity market operator obligated to purchase the electricity produced by the preferential producers

9. Feed-in Tariffs for small HPP Decision on the amount of installed power

10. Hydro potential • Unused available hydro power potential • According to the Study for potential small and micro hydro power plants in Republic of Macedonia, potential for building 406 facilities is identified with total installed capacity of 258 MW and average electricity production per year of 1094 GWh • Our advice: for accurate data, the future investors, before building, should go on the field and examine the current potential of the chosen location

11. 7 main basin regions in Macedonia

12. Small and micro hydro power plants potential

13. Interesting example: Vardar • planned cascade system of 12 HPPs on the basin of the river Vardar, biggest river in Macedonia

14. Tendering procedures • There has been 3 tendering procedures so far

15. Existing preferential producers of electricity from hydro power plants + 5 new small HPPs with total installed power of 2708 kW which are finalizing the procedure for becoming preferential producers

16. Future planning • In 2020 total installed power from small HPPs is planned to be 99,7 MW • *Data taken from the ‘Strategy for use of the renewable energy sources in Republic of Macedonia until 2020’

17. The Agency supports you • You are welcomed to explore the opportunities for investing in Macedonia • The Agency can provide any information you will need • We are open for cooperation • We support new ideas and EE and RES projects

18. THANK YOU FOR YOUR ATTENTION Lazar Gechevski, Director Energy Agency of the Republic of Macedonia www.ea.gov.mk