North Macedonia Adopts Renewables Law and Enters EU Market Coupling Verification
North Macedonia has adopted the Law on the Use of Energy from Renewable Sources, introducing two-way contracts for difference, net metering and net billing, and a system of guarantees of origin designed for trading on the European market. In parallel, the country entered the verification stage of electricity market coupling with the EU, becoming the fourth Energy Community Contracting Party to do so after Serbia, Montenegro and Moldova.
What the law introduces
The law transposes EU renewables rules, including the Renewable Energy Directive, into North Macedonian legislation. Two-way CfDs give renewable producers a guaranteed minimum income while allowing excessive profits to be limited during periods of high market prices. State support through feed-in tariffs and market premiums will be allocated through a competitive, non-discriminatory procedure. The law also regulates net metering and net billing and sets out a framework for energy communities.
What is a two-way contract for difference
A two-way CfD is a support contract typically between a renewable energy producer and the state. When the market price falls below the agreed strike price, the state pays the producer the difference. When the market price rises above the strike price, the producer pays the difference back. The design stabilises producer revenues and limits excessive profits during price spikes.
Guarantees of origin and access to the European market
The law creates the conditions for the North Macedonia’s power market operator MEMO to join the Association of Issuing Bodies as a full member and to access the AIB Hub, the European network for cross-border trading of guarantees of origin. Once the system is operational, guarantees of origin issued to North Macedonian producers would be able to be accepted and traded on the European market. An auction platform for GoO trading is expected to follow the law's entry into force.
A step towards EU market coupling
North Macedonia notified the Energy Community Secretariat that it completed the legal alignment necessary for electricity market coupling with the EU. The Secretariat and the European Commission will now verify that the legislation, known as the Electricity Integration Package, aligns with EU rules and that the conditions for integration are in place. North Macedonia is the fourth Contracting Party to enter this verification process, following Serbia, Montenegro and Moldova.
What it means for the market
The reform gives investors in North Macedonian renewables a more predictable revenue framework and creates a pathway for guarantees of origin from North Macedonia to be accepted and traded on the European market, subject to full AIB integration and operational implementation. For the wider region, the coupling verification marks another step towards regional electricity market integration with the EU, which over time may deepen liquidity and narrow spreads across South-Eastern Europe. Key questions on North Macedonia's renewables law
What did North Macedonia adopt?
The Law on the Use of Energy from Renewable Sources, which introduces two-way contracts for difference, competitive allocation of feed-in tariffs and market premiums, net metering and net billing, rules for energy communities, and a system of guarantees of origin designed for trading on the European market.
What is a two-way CfD under the new law?
A support contract that typically pays renewable producers the difference when market prices fall below the strike price and requires producers to pay back the difference when prices rise above it.
How will North Macedonian guarantees of origin reach the European market?
The law creates the conditions for the market operator MEMO to become a full member of the Association of Issuing Bodies and access the AIB Hub, the European network for cross-border GoO trading. An auction platform is expected after the law enters into force.
What does the market coupling verification stage involve?
The Energy Community Secretariat and the European Commission verify that North Macedonia's Electricity Integration Package aligns with EU legislation and that conditions for market integration are in place. North Macedonia is the fourth Contracting Party to enter this verification process, after Serbia, Montenegro and Moldova.
Source
Energy Community Secretariat, "North Macedonia takes a step closer to EU electricity market coupling," 1 July 2026:https://www.energy-community.org/news/Energy-Community-News/2026/7/1.html
Disclaimer
This article is prepared by D.TRADING for general informational purposes only and does not constitute legal, financial, investment, accounting, tax, or regulatory advice. The information contained herein is based on publicly available sources and reflects opinion on the regulatory environment as of the publication date. D.TRADING makes no representations or warranties, express or implied, as to the accuracy, completeness, or timeliness of the information provided. This document is not an offer or solicitation to buy or sell any energy products, commodities, or financial instruments.
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