North Macedonia has adopted a new Law on the Use of Energy from Renewable Sources, establishing a modern legal framework for clean energy development in line with European Union legislation. The legislation is considered one of the country's most significant energy sector reforms in recent decades.
The new law provides greater regulatory certainty for investors, streamlines institutional procedures, and aligns North Macedonia's renewable energy framework with the latest EU regulations, supporting the country's transition to a cleaner and more competitive energy system.
The legislation introduces two-way Contracts for Difference (CfDs), providing revenue stability for renewable energy developers while helping protect consumers from excessive electricity prices during periods of market volatility.
It also establishes a transparent and competitive support scheme through feed-in tariffs and market premiums, designed to attract new investment, encourage the deployment of modern technologies, and accelerate renewable energy development.
For the first time, the law regulates net metering and net billing, enabling households, businesses, and public institutions to generate, consume, and better manage electricity produced from renewable sources.
It also creates a clear legal framework for energy communities, allowing citizens, municipalities, and businesses to jointly produce, store, consume, and trade renewable electricity while developing local energy projects.
The legislation strengthens the country's Guarantees of Origin system, paving the way for the national electricity market operator, MEMO, to join the Association of Issuing Bodies (AIB) and access the AIB Hub, Europe's cross-border platform for trading renewable energy certificates.
Once operational, the system will allow Guarantees of Origin issued in North Macedonia to be recognized and traded across European markets, further integrating the country's renewable energy sector with the wider European energy market.
The new framework is expected to reduce long-term dependence on energy imports, increase the share of renewable energy in the national energy mix, strengthen energy security, and diversify electricity generation.
It will also support the country's climate objectives by reducing fossil fuel consumption and greenhouse gas emissions while encouraging investment, creating new jobs, and expanding self-consumption of renewable electricity.
In parallel, North Macedonia has become the fourth Energy Community Contracting Party—after Serbia, Montenegro, and Moldova—to enter the verification process for electricity market coupling with the European Union.
Beyond strengthening North Macedonia's renewable energy sector, the new legislation reinforces the country's path toward deeper integration with the European energy market. A more predictable regulatory framework is expected to improve investor confidence, accelerate clean energy projects, and support long-term energy security.
For the Western Balkans, the reform also contributes to greater regional electricity market integration, facilitating cross-border electricity trade and supporting the region's broader energy transition toward a more connected, competitive, and sustainable power market.
