ENERGY SECTOR in the Republic of Macedonia SURVEY

1. ENERGY SECTOR in the Republic of Macedonia SURVEY Prof. d-r Konstantin Dimitrov University of Sts Kiril and Metodij – Skopje Macedonian Center for Energy Efficiency

2. 25713 km2 • 2.1 million inhabitants • energy supply is based 50% on domestic fossil fuel and hydropower • 50% on the import of liquid fuel and coal • gross energy demand is approximately 115 000 TJ • 55 GJ per capita • 587 M€ for imported fuel

3. Energy Demand

4. Electricity production

5. Basic energy data Coal production 7.2 Mton Thermal Power Plants 1010 MW Hydro Power Plants 515 MW 5 district heating system total capacity 600 MW Natural gas 60-80 Mm3 /a (800 Mm3 capacity) No indigenous oil reserves Consumption of oil derivatives 800 000 t/a Firewood participate in energy balance with 7 % Four regions with geothermal energy

6. Challenges and strategies to improve energy market performance Drafting new Energy strategy Power system - new plants Gas sector - extension and urban gasification Oil sector – quality harmonized with EU standards Coal sector - to develop mines Energy efficiency - large potential for energy savings

7. Prices are set in accordance with the Methodology for Pricing The prices of energy may be changed if the supervised costs shall be changed at least for 5% Most prices are determined freely There are no subsidies in the tariffs There are partly cross-subsidies in electricity tariffs No social or other subsidies directed to the consumers No taxes applied on energy consumption and emissions There are serious consumer non-payment problems Energy pricing

8. Poverty definition? "Poverty is like a disease, it comes when not expected and without our fault. As the sick person hopes to get better, the poor person is dreaming of a rich-set table. But my dream will hardly ever become a reality", Macedonian from urban area. “Poverty is when you see that there is no hope that at least your children would be better-off”. Turk, Skopje “Poverty is when you live on temporary loans”. Albanian, Gostivar Energy Poverty

9. Energy poverty implies an inability meet the physiological energy needs – for example for heating, cooking or lighting - of householders with the available resources of the household. The most basic definitions of energy poverty specify a resource threshold, in terms of a maximum acceptable proportion of household income devoted to energy consumption. Energy Poverty definition

10. In Scotland, energy poverty is defined as the level at which a household would need to spend 10% or more of its income on all fuel use and to heat the home to an adequate standard of warmth. This is defined, in accordance with World Health Organization recommendations, as 21°C in the living room and 18°C in other lived-in rooms in the house. Importantly, the definition focuses on what a household would need to pay,rather than what itactually pays, to maintain adequate warmth.

13. Long-term process To define measures which will mitigate “energy poverty” Demand side weatherization of the older/social buildings No real conditions for financing private households Creative solution performance contracting with ESCOs Win-Win situations could be, using micro-credit to finance improved energy technologies for income-generation by the poor etc. Energy Efficiency Tool to Cope Energy Poverty

14. To realization this challenge Action Plan for performing and implementation of EE measures from legislative/ normative and technical aspect Measures, on the side of energy production Measures taken on the demand side Intensive engagement of specialized, trained experts

15. Personal recommendationinstead of Thank you for your attention