ENERGY SECTOR in the Republic of Macedonia SURVEY

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Fourth Poverty Reduction Strategies Forum, Athens 2007Fourth Poverty Reduction Strategies Forum, Athens 2007

ENERGY SECTOR

in the Republic of MacedoniaSURVEY

Prof. d-r Konstantin DimitrovUniversity of Sts Kiril and Metodij – SkopjeMacedonian Center for Energy Efficiency

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• 25713 km2 • 2.1 million inhabitants • energy supply is based 50% on domestic fossil

fuel and hydropower • 50% on the import of liquid fuel and coal • gross energy demand is approximately 115 000 TJ • 55 GJ per capita • 587 M€ for imported fuel

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Energy Demand

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Electricity production

2005 2006 2007

Electrical energy GWh 8100 8400 9700

Production GWh 6500 6500 6800

Import GWh 1662 1900 2990

Distribution- Low voltage consumers

GWh 4900 4700 4900

Losses GWh 1000 1370 1523

Natural gas m3 million

77 82 113

Import expenditure € 308 450 587

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Basic energy data

Coal production 7.2 MtonThermal Power Plants 1010 MWHydro Power Plants 515 MW5 district heating system total capacity 600 MWNatural gas 60-80 Mm3 /a (800 Mm3 capacity)No indigenous oil reserves Consumption of oil derivatives 800 000 t/aFirewood participate in energy balance with 7 %Four regions with geothermal energy

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Challenges and strategies to improve energy market

performanceDrafting new Energy strategy

Power system - new plants

Gas sector - extension and urban gasification

Oil sector – quality harmonized with EU standards

Coal sector - to develop mines

Energy efficiency - large potential for energy

savings

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Energy pricing

• Prices are set in accordance with the Methodology for Pricing

• The prices of energy may be changed if the supervised costs shall be changed at least for 5%

• Most prices are determined freely• There are no subsidies in the tariffs • There are partly cross-subsidies in electricity tariffs • No social or other subsidies directed to the consumers • No taxes applied on energy consumption and

emissions• There are serious consumer non-payment problems

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Energy Poverty

Poverty definition?

"Poverty is like a disease, it comes when not expected and without our fault. As the sick person hopes to get better, the poor person is dreaming of a rich-set table. But my dream will hardly ever become a reality", Macedonian from urban area.

“Poverty is when you see that there is no hope that at least your children would be better-off”. Turk, Skopje

“Poverty is when you live on temporary loans”. Albanian, Gostivar

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Energy Poverty definition

Energy poverty implies an inability meet the physiological energy needs – for example for heating, cooking or lighting - of householders with the available resources of the household.

The most basic definitions of energy poverty specify a resource threshold, in terms of a maximum acceptable proportion of household income devoted to energy consumption.

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In Scotland, energy poverty is defined as the level at which a household would need to spend 10% or more of its income on all fuel use and to heat the home to an adequate standard of warmth. This is defined, in accordance with World Health Organization recommendations, as 21°C in the living room and 18°C in other lived-in rooms in the house.

Importantly, the definition focuses on what a household would need to pay, rather than what it actually pays, to maintain adequate warmth.

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Income average to 61 158 to 122 316 to 183 474 to 244 632

Used funds 302 702 48 420 97 959 154 224 213 790

Food 122 765 29930 55829 80047 102045

Fuel and light 23 905 4672 10754 16610 21914

% 7.90 9.65 10.98 10.77 10.25

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to 305 790to 366

948to 428

106 to 489 264 to 550 422 over 550 423

273968 334648 396820 455744 517710 809922

124335 140932 158570 179552 195575 219336

24340 27340 29307 33818 36325 39642

8.88 8.17 7.39 7.42 7.02 4.89

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Energy Efficiency Tool to Cope Energy Poverty

• Long-term process • To define measures which will mitigate “energy

poverty” • Demand side weatherization of the older/social

buildings • No real conditions for financing private households • Creative solution performance contracting with

ESCOs• Win-Win situations could be, using micro-credit to

finance improved energy technologies for income-generation by the poor etc.

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To realization this challenge

• Action Plan for performing and implementation of EE measures from legislative/ normative and technical aspect

• Measures, on the side of energy production

• Measures taken on the demand side

• Intensive engagement of specialized, trained experts

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Personal recommendationinstead of Thank you for your attention

ENERGY SECTOR in the Republic of Macedonia SURVEY

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