North Macedonia’s energy system is small by European standards, but it carries many of the region’s biggest energy questions in one place. The country still depends heavily on domestic lignite coal for electricity, imports all of its oil and natural gas, and is trying to build a cleaner system through solar, wind, hydropower, gas interconnection and grid modernization. Its location in the Western Balkans matters because North Macedonia is not an energy island. It is tied to regional electricity trade, future gas routes, EU climate standards and the difficult economics of replacing old coal plants without weakening energy security.
North Macedonia’s Energy Story Is a Coal Transition Story
The central energy issue in North Macedonia is the future of coal. The country has long relied on lignite-fired power, especially from the REK Bitola complex, to provide a large share of its domestic electricity. In 2024, North Macedonia’s power system included two coal power plants with a combined installed capacity of about 825 MW, several hydropower plants with about 695 MW, one 287 MW combined heat and power plant, solar plants, biogas plants, wind farms and older oil-fired capacity. Coal plants produced 58% of the country’s annual electricity consumption in 2024, showing why the energy transition is not only a climate issue but also a reliability issue.
The country’s energy challenge is therefore practical: it must replace aging lignite capacity while keeping enough electricity available for households, industry and public services. Energy Community data for 2025 lists North Macedonia with 2,984 MW of installed capacity, 6,129 GWh of generation and 6,889 GWh of gross electricity consumption, which means imports remain part of the system.
Coal in North Macedonia: Old Lignite Plants and a Difficult Phaseout
Coal in North Macedonia is mainly lignite, a lower-grade form of coal used in thermal power plants. The country’s lignite system is built around mining and power generation, with REK Bitola as the major plant and REK Oslomej as the smaller, older facility. Oslomej was temporarily used during the 2021–2022 energy crisis but became inactive again in 2024 because of outdated generation capacity. REK Bitola has also had refurbishment work, but much of its equipment remains old.
This creates a policy problem. Coal is polluting and increasingly out of step with European decarbonization rules, but it still provides dispatchable power. The country has discussed coal phaseout timelines for years, and international financing is now tied to moving away from coal. In 2024, Climate Investment Funds approved $85 million to support North Macedonia’s coal transition plan, with the wider program expected to help retire coal-fired capacity at Bitola and Oslomej, reclaim mining land, support renewable energy and add storage.
For North Macedonia, coal phaseout is also a regional labor and infrastructure issue. Mines, workers, plant sites and transmission lines cannot simply disappear from the economy. A serious energy transition must reuse sites, retrain workers and keep power supply stable during the years when new renewable and gas infrastructure is being built.
Natural Gas in North Macedonia: Imports, Industry and the Greece Connection
Natural gas plays a smaller role than coal, but it is becoming more important in North Macedonia’s energy planning. The country imports gas, and gas use has historically been limited by weak distribution networks and dependence on a single supply route. Bankwatch notes that fossil gas has been imported through a single entry point at the Bulgarian border and is mainly used by industrial customers and combined heat and power plants, while household gas use remains very limited.
The major new gas story is the Greece–North Macedonia interconnector. The project is designed to connect North Macedonia with Greece and the wider regional gas system, giving the country more supply options. Enerdata reported that the project is planned as a 1.5 bcm/year pipeline over 123 km, including 68 km in North Macedonia, with completion expected in early 2027 and possible later expansion to 3 bcm/year.
This matters because gas can support electricity reliability during the coal transition. It can also help industry and district heating where direct electrification is harder. But gas is not a complete solution. North Macedonia imports all of its gas, so more gas use can also mean more exposure to foreign suppliers, global prices and contract risk. The long-term question is whether gas becomes a temporary reliability tool or a larger pillar of the country’s energy system.
Oil in North Macedonia: Imported Fuel and Transport Demand
Oil is important in North Macedonia less because of electricity generation and more because of transport, trade and daily fuel use. The country imports oil and petroleum products, which makes it exposed to global oil prices, currency movements and regional supply routes. Enerdata describes North Macedonia as importing all of its oil and gas, while oil remains a major part of national energy demand.
Transport is the key oil-consuming sector. North Macedonia’s preliminary 2024 energy balance shows final energy consumption of 1,859,697 toe, with transport responsible for 47.6% of final energy consumption. Households followed at 26.1%, industry at 16.9% and other sectors at 8.4%.
That structure explains why oil will not disappear quickly from the country’s energy picture. Even if electricity becomes cleaner, road vehicles, freight, buses, agriculture, construction and aviation still depend on liquid fuels. Over time, electric vehicles, public transport investment and regional fuel standards could reduce oil demand, but North Macedonia’s oil security will remain closely tied to transport policy.
Electricity Infrastructure in North Macedonia: The Grid Is the Real Bottleneck
North Macedonia’s energy transition depends on infrastructure as much as fuel choice. The country needs enough generation capacity, but it also needs transmission lines, distribution upgrades, balancing capacity, storage and regional interconnection. Solar panels and wind farms do not solve the problem if the grid cannot absorb and move their power.
The country is already connected to regional electricity markets, and its geography gives it strategic value. North Macedonia sits between Greece, Bulgaria, Serbia, Kosovo and Albania, making it part of a wider Balkan energy corridor. This position creates opportunities for power trade, but it also means domestic reliability depends partly on regional market conditions.
Energy Community data shows that North Macedonia’s 2025 gross electricity consumption was higher than domestic generation, and import flows remain significant. The same data lists 3,745 GWh of electricity import flows.
Grid investment is especially important because solar capacity is rising quickly. When solar grows faster than transmission, storage and balancing systems, the result can be curtailment, price volatility and reliability problems. North Macedonia’s future system will need more flexible power plants, batteries, better forecasting, stronger interconnectors and smarter distribution networks.
Nuclear Energy in North Macedonia: No Current Nuclear Power, but Some Policy Interest
North Macedonia does not currently use nuclear power as part of its electricity mix. Nuclear power is therefore not a present source of electricity generation in the country, unlike in some European states where reactors provide a major share of low-carbon baseload power. Our World in Data’s North Macedonia energy profile tracks nuclear as a separate low-carbon source, but the country is not a nuclear electricity producer.
The nuclear question is still worth including in a North Macedonia energy profile because small modular reactors have entered regional energy discussions. In 2024, reports said North Macedonia and Slovenia had discussed small modular reactor cooperation with the United States and the United Kingdom.
For now, nuclear power remains a policy discussion rather than an operating energy source. North Macedonia’s grid size, financing limits, technical capacity and urgent need to replace coal make nuclear a complicated option. The more immediate path is likely to focus on renewables, grid upgrades, gas interconnection, energy storage and efficiency. Still, nuclear may stay in the policy debate if the country looks for firm low-carbon electricity after coal.
Renewable Energy in North Macedonia: Solar Is Moving Fast
Renewable energy is the strongest growth story in North Macedonia. Hydropower has long been part of the power mix, but solar is now changing the pace of the transition. The country has good solar potential, especially because much of its territory has strong sunlight and suitable land near existing infrastructure.
The 2024 energy balance shows how fast this shift is becoming visible. North Macedonia recorded a 140% increase in solar electricity, even as lignite and hydro energy both declined.
IRENA’s 2025 renewable energy profile for North Macedonia listed 2024 renewable electricity capacity of about 713 MW hydro/marine, 833 MW solar and 74 MW wind, with solar adding 327 MW during the year.
Solar is attractive because it can be built faster than large thermal or nuclear plants. It can also reuse old industrial or mining land, including sites connected to the coal transition. But solar creates new needs: storage, flexible demand, better grid planning and stronger market rules. Without those, solar growth can create midday surpluses while the system still depends on fossil fuels during evening peaks.
Wind, Hydropower and the Geography of North Macedonia’s Renewables
North Macedonia’s renewable energy potential is not only solar. Hydropower remains important because of the country’s rivers and mountainous terrain, but it is exposed to rainfall patterns and drought risk. This makes hydropower useful but not fully reliable as the backbone of future electricity supply.
Wind power is smaller today, but major projects could change that. In 2024, Reuters reported that Alcazar Energy Partners launched a $500 million wind project near Shtip, planned at 400 MW. The project was described as North Macedonia’s largest wind farm and part of a wider effort to move away from coal-fired power.
The Nature Conservancy has also highlighted the country’s renewable siting potential, estimating large technical solar potential and more selective wind potential depending on environmental constraints. Its analysis estimated 50 GW of solar PV potential in high-scoring areas, or 11 GW outside important plant and bird areas, while wind potential was estimated at 457 MW in high-scoring areas, or 354 MW outside those sensitive areas.
This is why geography matters. North Macedonia is mountainous, landlocked and regionally connected. Renewable energy development must balance solar fields, wind sites, hydropower, biodiversity, agricultural land, local communities and transmission access.
Energy Security in North Macedonia: Imports, Prices and Regional Risk
North Macedonia’s energy security problem has two sides. On one side, domestic lignite gives the country local electricity supply. On the other side, lignite plants are old, polluting and tied to mines with limited long-term life. At the same time, the country imports all oil and gas, and it still relies on electricity imports when domestic generation is not enough.
This makes the country vulnerable to price shocks. High gas prices, expensive imported electricity or oil market disruption can raise costs for households, businesses and the state. The OECD has described North Macedonia’s electricity generation as heavily reliant on coal and natural gas, with growing import dependence exposing it to global price shocks.
Energy security in North Macedonia therefore means more than replacing coal with renewables. It means building a system with enough domestic generation, more diverse gas supply, better regional links, storage, demand management and efficient buildings. Energy efficiency is especially important because the cheapest energy security measure is often reducing waste.
Energy Policy in North Macedonia: EU Standards, Renewables and Coal Reduction
North Macedonia’s energy policy is shaped by its European path. As a Western Balkan country aligned with the Energy Community framework, it is under pressure to modernize markets, reduce emissions, improve efficiency and prepare for EU-style climate rules.
In April 2026, the government adopted a National Energy and Climate Plan for 2025–2030. The plan focuses on reducing greenhouse gas emissions, increasing renewable energy, improving energy efficiency, introducing carbon pricing aligned with European standards, developing energy storage, modernizing energy infrastructure and gradually phasing out coal.
The policy direction is clear, but implementation will be harder than planning. Coal retirement affects workers and regions. Renewable growth requires permitting, land, grid capacity and financing. Gas infrastructure must avoid locking the country into long-term fossil dependence. Electricity market reform must protect consumers while still attracting investment.
The Main Energy Challenges Facing North Macedonia
The first challenge is aging coal infrastructure. Coal plants still carry a major share of the electricity system, but the assets are old and increasingly costly to maintain. The second challenge is import dependence. North Macedonia imports oil and gas, and it still needs electricity imports when domestic supply is not enough.
The third challenge is grid readiness. Solar is growing fast, but renewable power needs transmission, distribution upgrades, storage and balancing. The fourth challenge is investment. Replacing coal is expensive, and the country needs foreign capital, public finance and stable rules. The fifth challenge is timing. If coal closes before enough replacement capacity is ready, energy security could weaken. If coal stays too long, the country risks higher emissions, older infrastructure and deeper conflict with European climate rules.
The Future of Energy in North Macedonia
North Macedonia’s energy future will be decided by whether it can move from an old lignite-centered power system to a more balanced mix of renewables, flexible gas, hydropower, storage, efficiency and regional trade. The country has real solar potential, emerging wind investment, useful hydropower, and a strategic position in the Western Balkans. But it also has aging coal plants, full oil and gas import dependence, and a grid that must be upgraded for a cleaner system.
The most likely future is not one single replacement for coal. It is a layered transition: solar and wind for new clean electricity, hydropower where conditions allow, gas and imports for flexibility, storage for balancing, and stronger infrastructure to connect it all. For North Macedonia, the main energy question is whether that transition can happen fast enough to reduce coal dependence without creating a new reliability problem.
