European HYDROPOWER Summit Bucharest 27-28 February 2012 Lazar Gechevski, Director Energy Agency of the Republic of Macedonia.

HYDROPOWER POTENTIAL IN REPUBLIC OF MACEDONIA

European HYDROPOWER Summit Bucharest 27-28 February 2012

Lazar Gechevski, DirectorEnergy Agency of the Republic of Macedonia

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 3.000 GWh (500

М€/annually).

Final energy consumption for 2011

Cox

Production of electricity

24%

4%

73%

Coal

Oil

Hydro

72%

72%

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

Needs and target

Price of electricity in Europe

• Macedonia has the lowest electricity price

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

Legislation in Republic of Macedonia regarding the hydropower and other 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

The procedure to become preferential producer from RES

Type of plant Preferential tariff in Еuro-cents/kWh

Small hydropower plants

1 - 1 020 000 kW 12.00

1 020 001 – 2 040 000 kWh 8.00

2 040 001 – 4 200 000 kWh 6.00

4 200 001 – 8 400 000 kWh 5.00

Over 8 400 001 kWh 4.50

Feed-in Tariffs for small HPP

Decision on the amount of installed power

Individual installed capacity Total installed capacity

Up to 10 MW unlimited

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

Hydro potential

7 main basin regions in Macedonia

Small and micro hydro power plants potential

planned cascade system of 12 HPPs on the basin of the river Vardar, biggest river in Macedonia

Interesting example: Vardar

There has been 3 tendering procedures so far

Tendering procedures

Number of locations

Installed power (kW)

Production per year (MWh)

I 41 43.727 115

II 24 15.395 40

III 20 14.702 39

Total 85 73.824 194

Successful

71 65.000 175

Power plant Nominal power (kW)

1. Ohrid 2 320

2. Dabnishte 32

3. Ohrid 3 229

4. Belica 1 995

5. Belica 2 996

6. Ohrid 1 117

7. Stara filternica Dovledzik 400

8. Drugovo 600

Total: 3689 kW

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

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’

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

The Agency supports you

Lazar Gechevski, DirectorEnergy Agency of the Republic of

Macedoniawww.ea.gov.mk

THANK YOU FOR YOUR ATTENTION