North Macedonia's new Renewable Energy Act enters into force
On the last day of June, the Assembly of the Republic of North Macedonia adopted a new Renewable Energy Act (Law on the Use of Energy from Renewable Sources, "Official Gazette of the Republic of North Macedonia", no. 146/2026), thereby regulating this sector for the first time through a dedicated act, instead of as part of the general Energy Act. The new act entered into force on 10 July 2026, at which point the last active provisions of the old Energy Act from 2024, relating to support measures and the issuance of guarantees of origin, have ceased to apply.
The new legislation comes as part of alignment with European rules and introduces a regulatory framework for the development of renewable energy, investments, and energy communities. It establishes a modernized system for granting support measures through feed-in tariffs and market premiums, as well as for issuing guarantees of origin, and for the first time regulates the mechanisms of two-way contracts for difference, net metering and net billing.
The implementation of two-way contracts for difference (CfDs) enhances investment certainty by ensuring a predictable revenue framework and a minimum level of remuneration for renewable energy producers, particularly in times of fluctuating electricity prices. Market premiums will be awarded through a competitive auction procedure, to be regulated in more detail by secondary legislation. The introduction of CfDs is expected to further strengthen investor confidence and accelerate the development of renewable energy projects in North Macedonia.
The new regulatory framework governing the establishment and operation of energy communities has the potential to stimulate the development of local energy initiatives and small-scale solar projects. It enables citizens, municipalities and businesses to jointly participate in the electricity market by producing, storing, consuming and trading electricity. The introduction of net metering and net billing schemes is particularly significant for participants seeking to produce electricity primarily for self-consumption while retaining the ability to export surplus electricity to the grid.Nevertheless, the long-term success of these projects will largely depend on the effective implementation of the new regulatory framework in practice.
The new act further strengthens the regulatory framework governing guarantees of origin, enhancing their credibility and creating additional market value for electricity generated from renewable sources. Guarantees of originare becoming increasingly important for companies seeking to demonstrate the use of renewable energy, especially in their dealings with European partners and markets. At the national level, this represents an important step towards the integration of North Macedonia's electricity market with the organized European market. Following the accession of the Macedonian Electricity Market Operator (MEMO) to the Association of Issuing Bodies (AIB), the next key milestone will be the implementation of the European Energy Certificate System (EECS) and connection to the AIB Hub, enabling the cross-border transfer and trading of guarantees of origin across Europe.
Following the adoption of the new Renewable Energy Act, North Macedonia notified the Energy Community Secretariat that it had completed the legislative alignment required to initiate the process of electricity market coupling with the EU. The country has now entered the verification phase, during which the Secretariat and the European Commission assess whether the Electricity Integration Package has been correctly transposed into the national legislation and whether the legal, regulatory and institutional conditions necessary for market integration have been fulfilled. North Macedonia is the fourth Energy Community Contracting Party to enter this verification process, following Serbia, Montenegro, and Moldova.