1. Fourth Poverty Reduction Strategies Forum, Athens 2007 1 ENERGY SECTOR in the Republic of Macedonia SURVEY Prof. d-r Konstantin Dimitrov University of Sts Kiril and Metodij – Skopje Macedonian Center for Energy Efficiency

2. Fourth Poverty Reduction Strategies Forum, Athens 2007 2 25713 km 2 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

3. Fourth Poverty Reduction Strategies Forum, Athens 2007 3 Energy Demand

4. Fourth Poverty Reduction Strategies Forum, Athens 2007 4 Electricity production 200520062007 Electrical energyGWh810084009700 ProductionGWh6500 6800 ImportGWh166219002990 Distribution- Low voltage consumers GWh490047004900 LossesGWh100013701523 Natural gasm3 million 7782113 Import expenditure€308450587

5. Fourth Poverty Reduction Strategies Forum, Athens 2007 5 Basic energy data Coal production7.2 Mton Thermal Power Plants1010 MW Hydro Power Plants 515 MW 5 district heating system total capacity 600 MW Natural gas 60-80 Mm3 /a (800 Mm3 capacity) No indigenous oil reserves Consumption of oil derivatives 800 000 t/a Firewood participate in energy balance with 7 % Four regions with geothermal energy

6. Fourth Poverty Reduction Strategies Forum, Athens 2007 6 Challenges and strategies to improve energy market performance Drafting 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

7. Fourth Poverty Reduction Strategies Forum, Athens 2007 7 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

8. Fourth Poverty Reduction Strategies Forum, Athens 2007 8 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

9. Fourth Poverty Reduction Strategies Forum, Athens 2007 9 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.

10. Fourth Poverty Reduction Strategies Forum, Athens 2007 10 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.

11. Fourth Poverty Reduction Strategies Forum, Athens 2007 11 Income averageto 61 158to 122 316to 183 474to 244 632 Used funds302 70248 42097 959154 224213 790 Food122 765299305582980047102045 Fuel and light23 9054672107541661021914 % 7.909.6510.9810.7710.25

12. Fourth Poverty Reduction Strategies Forum, Athens 2007 12 to 305 790to 366 948to 428 106to 489 264to 550 422over 550 423 273968334648396820455744517710809922 124335140932158570179552195575219336 243402734029307338183632539642 8.888.177.397.427.024.89

13. Fourth Poverty Reduction Strategies Forum, Athens 2007 13 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.

14. Fourth Poverty Reduction Strategies Forum, Athens 2007 14 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

15. Fourth Poverty Reduction Strategies Forum, Athens 2007 15 Personal recommendation instead of Thank you for your attention