Heat and Drought Threaten Energy Production in North Macedonia

Drought and high temperatures are placing increasing pressure on North Macedonia’s energy system. Falling water levels in reservoirs, together with low river inflows, threaten to directly affect the amount of electricity produced.

Energy expert Konstandin Dimitrov estimates that the country has considerable generation capacity, but much of it is outdated and unable to operate at its planned capacity. According to him, the expansion of photovoltaic capacity has increased supply on the market and could create opportunities for lower prices, while electricity produced by ESM and that of private producers have different costs and prices.

“On paper, we have extensive and sufficient capacity for electricity production. If it were in good condition and operating at full capacity, it would cover the needs of the so-called low-voltage system. This group includes the Bitola thermal power plant, Oslomej, Negotino and all the other hydropower plants. I am not mentioning renewable sources, because compared with the thermal and hydropower plants we have, their share is relatively negligible. The existing capacity is outdated and cannot produce the projected amount, which is understandable since its lifespan is gradually coming to an end. It must be replaced with new, modern and functional equipment, which we have been expecting every day, but that day is being postponed more and more,” said energy expert Konstandin Dimitrov.

Dimitrov warns that the lack of rainfall and high temperatures could continue to affect energy production in the coming months. Under these conditions, electricity prices could come under upward pressure. However, the final price will be determined by developments on international energy exchanges, import and export opportunities, production and supply costs, as well as the overall state of the energy system. /rtm2