Energy auctions are a useful way to speed up the switch to renewable energy, as shown by global experiences. This was a key point in the panel discussion “Energy Auctions as Catalysts for Renewable Energy Deployment in the Western Balkans” at the Adria Summit, which was organized by the European Bank for Reconstruction and Development (EBRD). The Minister of Energy, Mining, and Mineral Resources, Sanja Bozinovska, was a participant.

Minister Bozinovska talked about what Macedonia has learned and the new support system the country is putting in place to attract investments in renewable energy: “Contracts for Difference” (CfD). This method, which has already worked well in the EU, offers stability, protection from market instability, and encourages real competition.

Bozinovska stated that they believe the CfD mechanism is the best model for creating a safe and predictable investment environment. With the help of the EBRD and international partners, they are adapting this system to their market in order to create conditions for achieving the goal of 1.7 GW of renewable sources by 2030.

In recent years, Macedonia has not had much success with feed-in tariff and premium systems, for which the state paid high subsidies, often more than the market price. The energy crisis made the weaknesses of this model even more obvious. Some power plants gave up their special status so they could sell electricity on the free market.

Regarding upcoming auctions, the Minister mentioned that a detailed regulatory and financial analysis is being done with the EBRD to introduce CfD auctions. These auctions will be transparent and allow investors to compete directly.

She also emphasized how important international support is, adding that the EBRD, the World Bank, the German KfW, and other institutions are their key partners. With their help, they are already investing in new solar and wind capacities, modernizing the transmission network, and creating new opportunities for green energy. The EBRD has already invested over 2.9 billion euros in Macedonia, which shows the trust and potential they have.

The panel, in addition to Minister Bozinovska, included the Minister of Energy of Montenegro, Admir Shahmanović, the Vice President of CWP Europe, Maja Turković, the Director of Finance at UniCredit Bank Serbia, Svetlana Cerović, and the CEO of New Energy Solutions, Miloš Čolić. Adil Hanif, Head of the Sustainable Markets Department at the EBRD, moderated the panel.

The panel provided a chance for countries in the Western Balkans and representatives from the private and financial sectors to share experiences and practices, with the goal of improving regulation and increasing investments in clean energy.