On May 21, 2025, the new Energy Law was published in the Official Gazette of the Republic of North Macedonia, adopted by the North Macedonia Assembly on May 14. This systemic and reform-oriented law marks a pivotal step in the transformation of the national energy sector, aligning it with European standards, sustainable development goals, and consumer protection principles.
Key Innovations and Legal Framework
The law is harmonized with several EU directives and regulations, including Directive (EU) 2019/944 on the internal electricity market and Regulation (EU) 2019/943. It establishes a comprehensive legal framework that regulates:
- the objectives and implementation of energy policy,
- licensing and operational conditions for energy activities,
- the rights and obligations of consumers and operators,
- access to energy systems and infrastructure development,
- the role and authority of the Energy and Water Services Regulatory Commission (ERC).
A notable innovation is the legal recognition of energy communities and citizen participation, enabling collective production and consumption of energy. The law also introduces digital infrastructure obligations, supporting smart metering and real-time energy management.
Benefits for Citizens and Businesses
One of the most transformative aspects is the promotion of the prosumer model, allowing individuals and legal entities to produce and sell electricity. This is particularly beneficial for households and SMEs investing in solar panels, as the law ensures transparent grid access and fair compensation for surplus energy.
The law also introduces targeted social measures to protect energy-vulnerable consumers, including subsidies, deferred payment options, and priority access to essential services. These measures aim to reduce energy poverty, a growing concern in the region.
For businesses, the law provides a predictable and competitive regulatory environment, encouraging investment in renewables, energy storage, and district heating. It also simplifies procedures for project development, especially in solar and wind energy, and supports foreign direct investment (FDI) through legal certainty and market liberalization.
Institutional and Strategic Vision
The ERC is empowered with broader oversight, including market monitoring, sanctioning, and ensuring fair competition. The law mandates public consultations and price transparency, reinforcing accountability and public trust.
A National Council for Energy Transition will be established to oversee decarbonization strategies and propose efficiency measures. The government also plans to integrate electromobility and green hydrogen into the national energy strategy, aligning with EU climate goals.
Conclusion
The new Energy Law is not merely a legal document—it is a strategic vision for a clean, inclusive, and resilient energy future. It provides the legal and institutional foundation for a just energy transition, empowering citizens, attracting investment, and ensuring environmental sustainability.
As law firm, our role is to guide clients through this evolving landscape—whether by advising on licensing, supporting renewable energy projects, or ensuring compliance with new regulatory standards. This law opens new opportunities for innovation and participation in one of the most dynamic sectors.
By Ivica Jevtic, Senior Partner, JPM North Macedonia