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National Energy and Climate Plan of the Republic of North Macedonia Draft

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National Energy and Climate Plan of the Republic of North Macedonia Draft NATIONAL ENERGY AND CLIMATE PLAN OF THE REPUBLIC OF NORTH MACEDONIA DRAFT Г ROOM NUMBER020 Published by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn, Germany ‘Open Regional Fund for South East Europe – Energy Efficiency‘ GIZ office North Macedonia Antonie Grubisic Br. 5, 1000 Skopje Phone +389 (0)2 3103 560 Fax +389 (0)2 3103 586 [email protected] https://www.giz.de/en/worldwide/301.html As at July 2020 Printed by Name City Design Name Skopje Photo credits List of photographers in alphabetical order Text Author’s given name and family name GIZ is responsible for the content of this publication. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) Alternatively: German Federal Foreign Office CONTENT Content .............................................................................................................................................................................. 3 Abbreviations and acronyms ............................................................................................................................................. 4 List of figures ..................................................................................................................................................................... 5 List of Tables ..................................................................................................................................................................... 7 1. OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN ................................................................................. 8 2. NATIONAL OBJECTIVES AND TARGETS ................................................................................................................ 40 3. POLICIES AND MEASURES ...................................................................................................................................... 64 2. NATIONAL OBJECTIVES AND TARGETS .............................................................................................................. 115 4. CURRENT SITUATION AND PROJECTIONS WITH EXISTING POLICIES AND MEASURES ............................. 115 5. ASSESSMENT OF IMPACTS OF PLANNED POLICIES AND MEASURES WITH EXISTING POLICIES AND MEASURES .................................................................................................................................................................. 148 3 ABBREVIATIONS AND ACRONYMS ACER Agency for the Cooperation of Energy Regulators AFOLU Agriculture, Forestry and Other Land Use BEG Balkan Energy Group BUR Biennial Update Report CEE CAO Central Eastern Europe Coordinated Auction Office CHP Combined heat and power CNG Compressed Natural Gas CROPEX Croatian Power Exchange EBRD European Bank for Reconstruction and Development EE Energy efficiency EnC Energy Community EnC ISAC Energy Community Information Sharing and Analysis Centre ENTSO - E European Network of Transmission System Operators for Electricity ENTSO – G European Network of Transmission System Operators for Gas ERC Energy and Water Services Regulatory Commission of the Republic of North Macedonia ESCO Energy Service Company ESM Power Plants of North Macedonia ETS Emission Trading System EU European Union FiP Feed in Premium FiT Feed in Tariff FOLU Forestry and Other Land Use GDP Gross Domestic Product GHG Greenhouse Gases H&C Heating and Cooling HFO Heavy Fuel Oil HGV Heavy Goods Vehicle HPP Hydro Power Plant HUPX Hungarian Power Exchange IEA International Energy Agency INDC Intended Nationally Determined Contribution IPCC Intergovernmental Panel on Climate Change IPPU Industrial Processes and Product LCV Light Commercial Vehicles LDV Light Duty Vehicles LNG Liquefied Natural Gas LPG Liquefied Petroleum Gas MEPSO Electricity Transmission System Operator of Republic of North Macedonia MMR Monitoring Mechanism Regulation NGO Non-governemental Organisation PECI Project of Energy Community Interest PP Power Plant PV Photovoltaic R&D Research and Development R&I Research and Innovation RES Renewable Energy Source SDG Sustainable Development Goals SEEPEX Serbian South East European Power Exchange SME Small and Medium Enterprises SMM Serbia, North Macedonia, Montenegro control block SS Substation TPP Thermal Power Plant TSO Transmission System Operator UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development WAM Scenario with Additional Measures WB6 Western Balkans 6 Initiative WEM Scenario with Existing Measures WEO World Energy Outlook LIST OF FIGURES Figure 1. Investment costs by scenario (mil. EUR), and the difference between the scenarios by type of investment in the Energy sector................................................................................................................................................................................................. 17 Figure 2. Total energy system costs (mil. EUR) and the difference between the scenarios by type of cost ...................................... 17 Figure 3. Marginal abatement cost (MAC) curve ............................................................................................................................... 18 Figure 4. Number of green jobs ......................................................................................................................................................... 18 Figure 5. Population in ‘000, 2018 ..................................................................................................................................................... 21 Figure 6. Real GDP growth rate (%), 2018 ........................................................................................................................................ 21 Figure 7. Real GDP/capita (USD), 2018 ............................................................................................................................................ 21 Figure 8. PPP GDP/ capita (USD), 2018 ........................................................................................................................................... 21 Figure 9. Share of export of goods and services in GDP (%), 2018 .................................................................................................. 21 Figure 10. Long-term unemployment rate (%), 2018 ......................................................................................................................... 22 Figure 11. Primary energy consumption per capita (toe/capita), 2018 .............................................................................................. 23 Figure 12. Primary energy consumption per GDP (toe/EUR), 2018 .................................................................................................. 23 Figure 13. CO2-eq emissions per capita ............................................................................................................................................ 23 Figure 14. RES share in gross final energy consumption (%), 2018 ................................................................................................. 24 Figure 15. RES share in final energy consumption in transport (%), 2018 ........................................................................................ 24 Figure 16. RES share in electricity production (%), 2018 .................................................................................................................. 25 Figure 17. RES share in heating and cooling (%), 2018 .................................................................................................................... 25 Figure 18. Primary energy consumption relative to 2005 (%) ............................................................................................................ 25 Figure 19. Final energy consumption relative to 2005 (%) ................................................................................................................ 25 Figure 20. Final energy consumption in households per capita (kgoe), 2018.................................................................................... 26 Figure 21. Energy productivity (EUR/kgoe), 2018 ............................................................................................................................. 26 Figure 22. Energy productivity (PPPEUR/kgoe), 2018 ...................................................................................................................... 26 Figure 23. Import dependence (%), 2018 .......................................................................................................................................... 27 Figure 24. Macedonia import dependence by fuels (%), 2018 .......................................................................................................... 27 Figure 25. Population unable to keep home adequately warm (%), 2018 ......................................................................................... 27 Figure 26. Gross domestic expenditure on R&D (%), 2018 ............................................................................................................... 28 Figure 27. Implementing bodies ........................................................................................................................................................ 34 Figure 28. Persons and entities involved in the process of NECP preparation
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