Statement on Security of Supply, Republic of Macedonia STATEMENT ON SECURITY OF SUPPLY - REPUBLIC OF MACEDONIA - Skopje, July 2011 i Statement on Security of Supply, Republic of Macedonia CONTENT 1. LEGAL REGULATION ON SECURITY OF SUPPLY .................................................................................... 4 1.1. ENERGY LAW ......................................................................................................................................... 4 1.2. ENERGY REGULATORY COMMISSION.......................................................................................................... 4 1.3. COMMISSION FOR PROTECTION OF COMPETITION (CPC) ............................................................................... 6 1.4. PUBLIC SERVICE OBLIGATION ................................................................................................................... 7 1.5. SUPPLIERS OF LAST RESORT ..................................................................................................................... 8 1.6. ENERGY SECURITY AND ENERGY BALANCES ................................................................................................ 8 1.7. ACT FOR DECLARATION OF CRISIS ............................................................................................................. 9 2. STRATEGY FOR ENERGY DEVELOPMENT ........................................................................................... 10 2.1. ENERGY CONSUMPTION IN THE PERIOD 2000-2010 .................................................................................. 11 2.2. FINAL ENERGY NEEDS IN THE PERIOD 2011-2020 ..................................................................................... 11 3. MACEDONIAN POWER SYSTEM ........................................................................................................ 12 3.1. REGULATORY FRAMEWORK IN ELECTRICITY SECTOR ................................................................................... 12 3.1.1. Primary Legislation ............................................................................................................... 12 3.1.2. Secondary Legislation .......................................................................................................... 12 3.2. KEY MARKET PARTICIPANTS AND THEIR RESPONSIBILITIES (ELECTRICITY MARKET) ........................................... 14 POWER BALANCE......................................................................................................................................... 19 3.2.1. Electricity consumption & supply ........................................................................................ 19 3.2.2. Peak Load ............................................................................................................................. 21 3.3. GENERATION ....................................................................................................................................... 24 3.3.1. Procedure for construction new generation facilities ......................................................... 24 3.3.2. Preferential producers ......................................................................................................... 24 3.3.3. Renewable Energy Sources .................................................................................................. 25 3.3.4. Existing generation capacities ............................................................................................. 26 TPP BITOLA ............................................................................................................................................... 26 TPP OSLOMEJ ............................................................................................................................................ 27 COMBINED CYCLE COGENERATION POWER PLANT TE-TO – SKOPJE.................................................................... 28 MAVROVO SYSTEM................................................................................................................................. 28 HPP TIKVES ............................................................................................................................................. 31 HPP SPILJE .............................................................................................................................................. 31 HPP KOZJAK ........................................................................................................................................... 32 HPP GLOBOCICA..................................................................................................................................... 33 3.3.5. DEVELOPMENT OF NEW CAPACITIES................................................................................... 34 HPP SVETA PETKA ...................................................................................................................................... 34 HPP CEBREN .............................................................................................................................................. 34 HPP GALISTE ............................................................................................................................................. 35 HPP BOSKOV MOST .................................................................................................................................... 36 HPP IN VARDAR VALEY ................................................................................................................................ 37 MINE BROD-GNEOTINO ............................................................................................................................... 38 UNDER-STRATUM SERIES IN MINE SUVODOL – BITOLA ....................................................................................... 38 3.4. TRANSMISSION..................................................................................................................................... 39 3.4.1. Basic data for transmission network .................................................................................... 39 3.4.2. Interconnections ................................................................................................................... 39 3.4.3. Development of transmission network ................................................................................ 41 3.4.4. Security of Supply from operational aspects ........................................................................ 43 3.5. DISTRIBUTION ...................................................................................................................................... 45 3.5.1. Investments and project for improvement of Security of supply ......................................... 46 3.5.2. Improvement of service for increase of security of supply .................................................. 47 3.5.3. Provisions for safe and secure dispatching of distribution system ....................................... 48 4. MACEDONIAN NATURAL GAS MARKET SYSTEM ............................................................................... 50 ii Statement on Security of Supply, Republic of Macedonia 4.1. REGULATORY FRAMEWORK IN GAS SECTOR ............................................................................................... 50 4.1.1. Secondary Legislation .......................................................................................................... 50 4.2. KEY MARKET PARTICIPANTS AND THEIR RESPONSIBILITIES ............................................................................. 52 4.3. EXISTING NATURAL GAS SYSTEM ............................................................................................................ 53 4.4. NATURAL GAS NEEDS ........................................................................................................................... 54 4.5. INVESTMENT IN FUTURE PROJECTS .......................................................................................................... 54 5. OIL SECTOR ....................................................................................................................................... 55 5.1. LEGAL FRAMEWORK .............................................................................................................................. 55 5.2. KEY MARKET PLAYERS ............................................................................................................................ 56 5.3. CURRENT INFRASTRUCTURE .................................................................................................................... 56 5.3.1. Oil refinery OKTA .................................................................................................................. 56 5.3.2. Biodisel Fuel production ....................................................................................................... 57 5.3.3. Petrol stations ....................................................................................................................... 57 5.3.4. Storage area .......................................................................................................................... 57 5.3.5. Supply of oil and oil derivatives ............................................................................................ 58 5.4. COMPULSORY OIL AND OIL DERIVATIVES .................................................................................................... 59