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• |Macedonia
• |Energy Sources

Electricity

Macedonia produces electricity mainly in thermal power plants (about 70 %) and hydro power plants. Only very little (about 0.5 %) is imported. Losses amount to 20 %.

Structure of power sector

Details on existing thermal and hydro generation capacities and plants under construction or planned, can be found at ESM's website.

Electricity Demand by Sector (2006) GWh

Electricity Balance 2009

Electricity Grid

The main transmission network consists of 400kV, 220kV and 110kV lines. The 400kV system is the backbone of the transmission network. It connects the Bitola thermal plant to the main load centre at Skopje, and connects Macedonia to the European UCPTE system. Further connections (400 kV) to Greece and Bulgaria, and a 200 kV line to Albania are planned.

Macedonia has twenty-eight distribution districts, with a distribution network of 35kV, 10kV and 0.4kV lines. Electricity coverage is extended to almost all populated Macedonian regions. Skopje's consumption dwarfs that of the other distribution districts, accounting for 37 % of the total household consumption in Macedonia. Only four other distribution districts account for more than 5 % of consumption: Tetovo (8.1 %), Bitola (6.7 %) and Kumanovo (5.9 %). On average, electricity consumption in each of the 24 other distribution regions is around 2 % of the total electricity consumption.

The website of ESM provides detailed information on the grid.

Electricity Grid

Oil and Natural Gas

Oil

Macedonia imports oil and oil products. The petroleum sector in Macedonia consists of refinery in Skopje (OKTA), a petroleum pipeline from the Greek border to the refinery, and a distribution system for petroleum products including terminals and service stations. The refinery is supplied with crude oil through a pipeline jointly owned by Hellenic Petroleum (80 %) and Government of Macedonia (20 %). Built by Hellenic, and completed in 2002, the pipeline has capacity of 2.5 million tons per year (more than adequate to meet domestic demand and for exports to other countries in the region) and connects the refinery to Hellenic's terminal in Thessaloniki. It is the least cost means of supplying crude oil to the refinery (although the pipeline access charges are high for the period 2002-07 to finance construction).

[ The World Bank ]

Gas

Macedonia imports about 100 Mio cubic meters of gas from Russia through a pipeline through Bulgaria which was constructed in 1996. Still, capacity utilization is currently under 10 percent, and gas demand is only 1 percent of total energy demand in Macedonia. Gas is used only in industry, and for District Heating (Skopje). A gasification project to supply industry around Skopje is under way. The national action plan related to Macedonia's obligations in the framework of the UN FCCC foresees the gasification of urban residential areas in Skopje in order to replace electricity as an energy source for heating.

[ First National Communication ]

Natural gas consumption in 2006 (21 users) : 82.22 10⁶ m_n³

Given the presence of the gas pipeline, and population density, Skopje is the most likely candidate for a Macedonia gasification project. The economics of gasifying areas in Skopje currently not served by the district-heating network are dependent on the relative price of gas and power. A study "Investment Options in the Energy Sector" - Natural Gas Supply To Skopje, carried out by EXERGIA S.A. with Rhein-Ruhr Ingenieur GmbH – RRI, Associated Offices of Vassardanis – Verveniotis, Danish Power Consult A.S – DPC, CESEN SpA , CSFTA and Energosistem, in October 2002 COWI suggested that development of a Skopje gas distribution network would be economically viable at the then current gas and power prices. A new, updated study is prepared and should be submitted by IGDAS (Turkish Public Gas Company) in January 2007. In order for a Skopje gas distribution project to proceed, a number of issues would have to be settled (e.g. relating to ownership of the gas pipeline) and a framework for regulation of the gas industry developed.The new study provides precise estimation of costs and benefits associated with gasification, and through this, a project design is specified (in terms of areas to be covered, number of consumers to be connected, forecast prices, finance requirements, etc With progress in these areas, it may be feasible to structure a concession for development of a Skopje network; donor finance should be sought for development of such a concession. To the extent that market sentiment for gas distribution concessions is not favorable – the extent of private sector interest should become clear following tenders for gas distribution concessions underway or planned in a number of South East Europe (SEE) countries - construction of a gas distribution network could be financed on a sovereign basis.

In order for gasification to take place outside Skopje, a new north-south pipeline would be required. Such a pipeline would also potentially facilitate import of Caspian gas to Macedonia, possibly at a lower price than Russian gas. Recognizing the potential for import of Caspian gas through Turkey to SEE, a project to construct a new Greece – Turkey gas pipeline has been developed. In conjunction with the Greece-Turkey pipeline, Macedonia, Albania, Bosnia and Herzegovina, Greece, Serbia and Turkey signed an interconnection agreement in February 2003, whereby there was agreement to explore options for exporting gas from Turkey via Greece to the other signatory countries. However, there was also an other project offering developed for a different direction, passing far from Macedonia border. The World Bank has commissioned a preliminary study to establish possible delivery prices of Caspian gas to SEE countries. The study suggests that based on current off take contract prices between Turkey and Azerbaijan, together with transport costs associated with new pipelines, Caspian gas would come in to Macedonia at a price slightly lower than the current Russian gas price. Delivered gas prices could fall if off take prices in Turkey are renegotiated; there would seem to be scope for this given that off-take prices currently exceed costs of supply. Further work is required before any decisions to proceed with pipeline investment are made. To this end, the EC has launched a major study of gasification in SEE. This should be completed in 2005, and will help to establish whether a north – south gas pipeline in Macedonia is economically viable.

[ The World Bank ]

Coal and Lignite

Coal

The total reserves of coal in Macedonia are 941 million tons most of which (about 80 %) are proven reserves. Additionally, exploration reserves comprise about 60 % of the total balance, Approx. 82 % of existing reserves are suitable for surface exploitation, while 18 % are strictly explored underground.

Current annual production is at 7.2 Mt.

[ Donevski ]

Although most local coal output is low-grade lignite, it is used extensively for domestic energy production. Higher quality anthracite coals and coke (approximately 130,000 tonnes per annum) have to be imported for some primary electricity generation and the local metallurgical industry.

[ Worldinformation ]

Coal Production of Macedonia

Coal Consumption 2006 (tons)

Heat

Electricity is widely used for residential heating in Macedonia, particularly in urban areas. (See: Energy Demand / fig.: Final energy demand of the residential sector, FYR Macedonia, 2004)

District heating in Macedonia is largely confined to Skopje.

The District Heating System of Skopje currently has 487 MW of hot water generation capacity and 26 MW of steam capacity. Annual heat production is around 685 GWh, predominantly for residential and commercial consumers. The structure of the connected consumers of heat energy is such that 63% are collective buildings (approx. 2.600.000 m2 or approx. 41.470 apartments), 5% are individual houses (approx. 140.000 m2 or 1.690 apartments), 27% are consumers declared as business and commercial, 2% are users from the public sectors and institutions, and 3% are schools. Total consumers capacity is approx. 550 MW. System losses of around 14 % are not unduly high by regional standards, although there may be scope for economically viable loss reduction projects.

A.D. " Toplifikacija" - Skopje, a district heating company whose basic activity is the production and distribution of heat energy, was founded in 1965. The district heating system of Skopje comprises 4 heat plants and approximately 150 km of grid. . All (i.e. 100%) of the energy delivered to the consumers is being measured in the individual sub-stations. Actually, the measuring of the delivered heat has been implemented since the last 10 years. The district heating system of the City of Skopje is a hot water system with a temperature of 130/70 °C. The total consumption of the district network company for the production of hot water and steam for heating is 71,400 toe (2.9 PJ) of fuel (85 % fuel oil, 15 % natural gas).

AD Skopje

AD Skopje Sever from Skopje is a new company, founded in 2000, and operates as an independent producer of heat energy. It has been in operation since the 2001 year. Its maximun consumers capacity is estimated to approx. 60-65 MW. The heating plant Sever is using natural gas as main fuel, and alternative fuel is heavy oil. It is the first energy plant in the country, which has been built according to international environmental regulations. The produced energy during the heating season 2000/2001 is estimated at 27-30 MWh/ year. The heat produced during the period 2001/2002 was at 49 MWh/year.. Annual fuel consumption is estimated at 3 million m3 of natural gas (first phase), 5,5 million m3 of gas in second phase, and approx. 8 million m3 of gas after the third phase of the project development. The annual fuel consumption in equivalent heavy oil is estimated at approx. 2.700 t/year, during the first phase.

Energy Department of ESM

The Electrical Power Company of Macedonia (ESM) has become, since 1997, the owner of the Energy Division of the Iron and Steel factory in Skopje (RZS), including a number of steam boilers and turbines, which have been appropriately modified to provide heat. The system consists of three steam boilers G-32 (25 MW).These boilers are planned for the production of steam for the two turbine units that are installed in this energy plant. At this moment, the two turbine units, with a total electrical capacity of 27 MW, are not functioning, but they might be activated in the upcoming period. The heating facilities operate as a standard district heating system, with an objective to provide heating services in the parts of the city where theere is technical and economic possibility for that. The distribution grid is not connected to the distribution grid of the City of Skopje (used by Toplifikacija AD Skopje). Fuel that can be used in the plant is natural gas, technical gas, gas from gasification factories and heavy oil. These days, the work on the development of the system is more intensive, and in perspective, the plan is to cover all neighbouring settlements with heating energy, up to the capacity of 60 MW.

Toplifikacija Bitola POO

Toplifikacija AD Skopje and Primatehna (company from Bitola) have created a new shareholder company that is called "Toplifikacija Bitola", in October 1999. The 7 boiler plants that belong to the Municipality, and have been given to Toplifikacija Bitola under concession, have a total installed capacity of approx. 26 MW (capable to provide heating services to 220.000 m2 of residential or commercial area). Other local heating systems for one, two or more collective buildings have also been installed. The total installed capacity is 2-6 MW. Actually, it is not a district heating system, but these local systems have boiler plants, small distribution grid and inner installation in the sector to be heated.

"Utility Services in Urban Housing: Energy and Water Efficiency Solutions for Europe & Eurasia", Experience from the Transition and Future Development in the Republic of Macedonia, MACEF 2006, Client: Alliance to Save Energy

[ The World Bank, Toplifikacija Skopje ]

Renewable Energy

Macedonia has promising indigenous resources of renewable energy. These include hydropower, geothermal energy, biomass energy, and in the longer-term wind energy. Even a though a pipeline of financially viable renewable energy projects has been identified by different project developers, these are not being implemented because of financial and institutional constraints.

Wind Resources

Current Status of Wind Energy

The Renewable Energy Country Profile compiled by Black&Veatch for EBRD states that no direct information on wind energy was available. However, in the neighbouring Greece 336.7 MW of the licenses granted were for Macedonia-Thrace. Furthermore there is an interconnection between both countries and Greece would be interested to buy wind power from Macedonia. The above-mentioned survey identified no industry association and no projects.

A countrywide wind-atlas is prepared, as a project funded by Electrical Power Company, and realized by USA Company. Necessary measurements are in the phase of realization in 3 quite promising locations, the project is funded by the Norwegian Government.

Wind Energy Resource Potential

Macedonia's potential wind resources have not been exploited so far, largely because of its recent political and ethnic problems, which diverted economic and energy resources to satisfying the basic needs of the economy and population. The wider former Yugoslav area has been reported (Davor Skrlec, Enconet International) as having potential wind resources of about 15 PJ/year. Although less windy than many northern European countries, wind energy appears to be a viable renewable energy technology in Macedonia. Being characterised by high mountains (some of the highest in Europe), it is reported that there are locations, which have annual average wind speeds exceeding 7 m/s.

However, the precise potential and specific locations will need to be determined and assessed, before techno-economic feasibility studies, business plans and investment programmes are prepared.

Identification of Areas/Projects with High Potential for Wind Energy

Judging by the Greek wind energy sites, the study by Black&Veatch estimates that Lake Doiran, South east of the country would probably be the best, followed by the area along the Greek border, in the south of the country.

[ EBRD ]

Solar Energy

Solar irradiation in Macedonia is amongst the highest in Europe. The most favourable areas record a large number of sunshine hours, the yearly ratio of actual irradiation to the total possible irradiation, reaching approximately 50 % for former Yugoslavia as a whole, or 45 % for the mountainous central regions, particularly in Macedonia, due to the prevailing weather pattern. The primary form of solar energy and technology used are flat plate collectors for heating houses and some commercial and public premises. But their contribution to the total energy consumption is insignificant (less than 1 %). Nor is it expected that this figure will increase substantially in the near future, as new consumption could mainly come from new entrants to the market i.e. of new buildings or installations. Likewise, electricity production from solar photovoltaic sources will be restricted to research or remote locations, primarily for telecommunications. PV solar energy is still 300-500 % more expensive than alternative fossil fuel derived sources.

[ EBRD ]

Average Global Solar Irradiation on a Flat Surface in Macedonia

Energy Sector Development Strategy for Macedonia, FINAL REPORT, 2000

From 2005-2007, a project of the Austrian Development Agency on Solar Water Heaters is dealing with training of experts and professionals and improvement of technology and production in Macedonia. The project is carried out by the Austrian AEE INTEC together with CRES from Greece and SWT from Germany. There are few companies producing flat plate collectors.

There is also a cooperation with a Spanish producer of solar collectors. Depending on the results of a feasibility study for production of heat and electricity with solar energy, the Spanish government would start a credit line for investment in solar energy.

Geothermal Energy

Current Status of Geothermal Energy Use

Macedonia derives useful energy in the form of heat from its geothermal wells. At present its geothermal water is used for heating greenhouses, residential houses, some commercial buildings, swimming pools and in balneology. No electricity is produced from geothermal energy in the country.

The main hydrothermal systems are located in the East and North East of the country in the crystalline rocks of Macedonian-Serbian massive and are characterized by low TDS (total dissolved solids) and low corrosion activity. A number of geothermal areas composed by separate fields were discovered as a result of investigations from more than 50 prospecting and operating wells with a depth from 40 to 2100 m.

In the year 2003, 543 TJ of heat were produced. An assessment by the World Bank estimates the potential at 22 MWth.

[ First National Communication ]

The total discharge of wells from the exploited fields in Macedonia constitutes 1000 l/s, the existing thermal capacity is 74.5 MWt. The proven thermal potential constitutes 220 MWt.

In geothermal zone Gevgelia:

1. At the field Smokvica 22 wells with a depth of 30-850 m were investigated. The most productive stratum was found in the range of 350-500 m. The total discharge of four wells was 180 l/s, the average wellhead temperature (WHT) was 65°C.
2. The field Negorska Banja was investigated by means of a few wells. The total discharge of thermal water of 80 l/s at 51°C was obtained by pumping from two wells at a depth of 600 m.

In geothermal zone Kotchany:

1. At the field Podlog 22 wells with a depth of 70-350 m were investigated. The most productive stratum was discovered at a depth of 307 m. Well-discharged 150 l/s of free flowing water with a wellhead temperature (WHT) of 79°C. 18 operating and prospecting wells were drilled during the last 20 years in this region. Total field productivity 600 l/s with temperatures from 57 to 79°C.
2. At the field Banja discharge of l/s was obtained at one successful well with temperature of 65°C.
3. At the field Vinica the total discharge of 60 l/s of thermal water with temperature of 60°C was obtained from a recently drilled operating well.

The geothermal projects – active or under construction – are:

1. Geothermal project Kotchany. Since 1982 geothermal heat has supplied 18 hectare of greenhouses and a rice-drying plant. Due to the increasing of thermal water discharge up to 450 l/s from the new well, it is planned to connect it with a paper mill and automobile spare parts factory, as well as the heat supply of dwellings.
2. Geothermal project Banjsko. The thermal water is used for heating 2.2 hectare of glass-covered greenhouses of out-of-date design and for heat supply of neighbouring hotels.
3. Geothermal project Gevgelia . The project consists of two parts. The first part is the system of geothermal heating for 22.5 hectare of stationary greenhouses from the field Smokvica (15 MWh). The second part is a system of geothermal heat supply of a hotel complex that includes the heating of rooms, hot water supply and balneology. The thermal water is transmitted from the field Negorcy (10 km from Smokvica).

Used technologies: Including the spouting (free flow) and pumping maintenance and the direct use of geothermal water with discharge into surface water pools.

Two geothermal energy projects have been realized with support of the Austrian Development Agency.

In Kocani, the existing geothermal plant (see above) was rehabilitated and extended. A concept for the optimization of the total system was elaborated. The other project had the aim to secure the extraction of thermal water at the geothermal zone of Istibanja and the optimization of the distribution system, as well as new heating equipment for the greenhouses. At the agricultural enterprise of Bregalnica in Vinica, 6 hectare greenhouses are heated with geothermal heat.

Geothermal Energy Resource Potential and Strategy of Development: The proven thermal potential is estimated to be 220 MWt. Its exploitation to the full could make a useful contribution to the environmental and renewable energy targets of Macedonia.

Strategy of development: It is planned to widen the existing heat supply system by connecting to industrial enterprises, hotels and dwelling houses. It is intended to improve the technology by means of creating two-loop heat supply systems and applying the re-injection of geothermal wastewater. The strategy of geothermal power engineering was developed in the framework of project "Evaluation of the reserves and technical feasibility of geothermal energy in Macedonia", 1997/1999, financed by the US Department of Energy and Ministry of Science of Macedonia.

[ EBRD ]

The Macedonian Geothermal Association has prepared a list of eight projects for expansion and rehabilitation of the existing geothermal schemes in Macedonia, mainly for use of geothermal heat in greenhouses and for space heating. The projects appear to be financially viable (pay-back time less than seven years) but many face institutional problems (e.g. public ownership of the near-bankrupt spas that own the existing boreholes).

Biomass

Current Status

According to the qualification of primary energy resources by the Macedonian State Energy Balance (SEB), an average of 800,000 m3 per year wood provides about 2,660 GWh/year of energy. This is 8.9 % of the total primary energy source in Macedonia according to the SEB estimate. There is a “theoretical” capacity of 6,000 GWh/year from wood. However, the SEB does not anticipate any increase beyond the current use of wood as an energy source. Wood is currently used only for residential heating. There are no plans to generate electricity from wood-fueled power plants. (Energy Sector Development Strategy for Macedonia, FINAL REPORT, 2000)

Currently, biomass covers about 6% of Macedonia's primary energy demand. Biomass is the second most important energy source for heating (after electricity). The majority of fuel wood is consumed by households. The Action Plan contained in the country's First National Communication to UNFCCC recommends to establish small district heating systems based on biomass and CHP in small rural municipalities. Provided a national afforestation plan is implemented, the growth of wood will be exceeding the demand of firewood.

In the period 1999-2001, the production of wood fuel and charcoal amounted to 787,000 m3, that of wood residues 3,638 m3.

Biomass Energy Potential

While an increase of the use of wood as a fire fuel in the traditional form is not expected, this does not necessarily mean that there are no margins and prospects for a better utilization of forest output for energy purposes. Better forest practices, reforestation, planting of deserted or marginal land could make a contribution, be it relatively small, to the further development of this sector. Moreover, as burning wood in the traditional way is quite polluting, there will be pressures for switching to other cleaner sources of energy, which would release fuel wood resources. This however, will be a slow process.

As far as exploitation of the residues of field crops, fruit tree plantations and livestock activities are concerned, there ought to be a significant potential for their collection and utilization, along with waste (incl. manures from intensive farms). This could be done through incineration or anaerobic digestion technologies. But special studies and surveys will have to be carried out to determine location, logistics, and size of units, economics and viability, likewise with MSW (Municipal Solid Waste) and the waste of sewage (sewage sludge).

[ EBRD ]

Overall Energy Potential of Biomass and Municipal Waste in Macedonia

Energy Sector Development Strategy for Macedonia, FINAL REPORT, 2000

In Kavadarci, centre for the wine production in Macedonia, there is interest in projects to prepare fuel briquettes from vineyard waste. The project sponsors have calculated that at current energy prices such a project would have a payback time of five to six years. Several other options for biomass use exist.

Hydropower

Current Status

According to the country profile on Macedonia compiled by EBRD, the seven large hydropower plants in Macedonia have a totel capacity of 480 MW. The capacity of existing small plants amounts to 50 MW.

Production of electricity from hydropower has fluctuated widely during 1980-2000: from about 1850 GWh (159 ktoe) in 1980 to 848 in 1992 and 1389 in 1999, 626 and 757 in 2001 and 2002. In 2003, electricity generation from Hydropower was 1483 GWh (approx. 4 % of primary total energy production).

The project of HPP Kozjak (80.5 MW) was completed in 2001. The HPP Project Sveta Petka (22.5 MW) is in the phase of building, downstream of the HPP Kozjak, as a part of the common project.

Also, few hydro projects are envisaged for accomplishing. Two of them are the storage facility in Lukovo Pole and an additional reservoir for the three existing downstream power plants in the Mavrovo system (HPP Vrben, HPP Vrutok and HPP Raven) and HPP Spilje 2 (72.8 MW), a new generating unit added to the existing HP Spilje.

Hydropower Potential

Macedonia is divided into 3 separate drainage units/areas, which are identified by their major, rivers:

1. The Vardar River water basin/drainage area of 20.535 km2
2. The Crni Drim River drainage area of 3.350 km2; and
3. The Strumica River drainage area of 1.535 km2

According to a Master Plan prepared as long ago as 1976 and other studies made at a subsequent time, "the technically usable" hydropower potential of the rives in the country are about 5.483 GWh.

[ EBRD, ENERDATA ]

Hydroelectric Potential of the Rivers in Macedonia (Annual GWh)

According to studies, the potential for small hydropower stations amounts to 400 potential small plants.

A bid for construction of two big hydro Power Plants was launched: Cebren (253 MW) and Galiste (193 MW).

In summer 2006, the Slovenian company "Turbo Institute" and the Macedonian government made an agreement for Turbo Institute to construct and manage 20 small hydropower plants with a total capacity of 20 MW. This agreement was canceled.

In September 2006, the Macedonian government tasked the Ministry of Economy to launch bidding for construction of small hydroelectric power plants in Macedonia.

[ SE Times, Makfax ]

In the framework of the GEF Mini Hydro project completed in 2004, it was demonstrated that financially viable opportunities exist for tapping of small hydropower resources, e.g. by adding small turbine plants to existing water supply pipelines. For the purpose of following up on this project, the Ministry of Economy has developed a "pipeline" of 4 similar projects (each in the rage of 0.5 to 5 MW) proposed by public sector entities and 11 mini-hydro projects (each in the range of 0.1 to 1 MW) proposed by private investors. These projects have all been screened for technical and financial viability, but they mostly still face institutional constraints (e.g. the solving of water rights issues) and all suffer from limited access to finance.

[ The World Bank ]

[ EBRD ]