Implementation of energy efficiency projects

The Energy Law (2018, amended in 2020) defines the basic principles for energy efficiency improvements, including the promotion of ESCOs as vehicles to achieve energy savings. It explicitly recognises third-party financing (a key feature of the ESCO model) as a mechanism for funding energy efficiency projects. It also allows and regulates the use of Energy Performance Contracts (EPCs), which are the core of ESCO operations.

Although there is a legislative environment for ESCOs in the country, there is still limited awareness among potential clients about the benefits of ESCO services. In addition, bureaucratic hurdles and regulatory uncertainties, and difficulties securing long-term financing can present additional challenges for the development of ESCOs in North Macedonia.

With the recent creation of the Ministry of Energy, Mining and Mineral Resources, it is expected that legislation around energy efficiency and the energy market will be approved, which might lead to broader support for SMEs and ESCOs.