Effective from 1 February, North Macedonia has initiated a revised framework for electricity procurement aimed at compensating for losses in the national transmission network. This update, mandated by the country’s Energy Law, signifies a pivotal change in how the transmission system operator, MEPSO, manages its energy requirements to ensure grid stability.
MEPSO has successfully completed its inaugural procurement cycle under these new regulations, which pertains to the delivery period of February-March 2026. The adjustments position MEPSO as a more proactive participant in the market, enhancing its legal and commercial capabilities particularly in acquiring electricity for technical loss compensation. The regulatory framework was designed with transparency to promote equal opportunities among all eligible market players.
A significant aspect of this revised approach is the introduction of multi-segment daily procurement. This method allows purchases to be more closely aligned with actual hourly loss patterns, thereby improving forecasting accuracy and reducing financial risks. Suppliers also gain the advantage of being able to submit bids only during periods when they have available generation capacity.
Another critical change involves the elimination of the modulation coefficient, which previously restricted participation from certain suppliers. This removal broadens market access and facilitates more flexible bidding structures. Furthermore, the minimum bid threshold has been reduced to 1 MW, allowing smaller domestic producers to engage in tenders. By enabling companies to propose volumes that reflect their actual production capabilities during selected timeframes, this system fosters greater market competitiveness.
Following bid submissions, MEPSO evaluates them based on offered prices and quantities for each time segment. Contracts are awarded starting from the most economically advantageous offers until the required energy volume for each period is fully secured, expressed in euros/MWh.
According to MEPSO, this new framework yields both operational and financial advantages, including enhanced flexibility in managing network losses, improved planning precision, increased supplier participation, and reduced imbalance costs. Preliminary results show promising savings: electricity prices achieved during the first procurement cycle under the updated rules were approximately 10% lower in February and 4% lower in March compared to the same months in 2025.
