Focus on Energy, 2010 - Karanovic & Nikolic

ENERGY AGENCYThe Energy Agency was founded in 2005 by the law on the Energy Agency as an institution responsiblefor the implementation and promotion of the policies of energy efficiency and renewable energy sources.The agency’s work is financially supported by the “World Bank” and other international funders. Its mainactivities include:ableenergy sources;Public EnterprisesTHE MACEDONIAN TRANSMISSION SYSTEM OPERATORMEPSO is the second company that was established with the ESM division in 2005 as a JSC. It is 100%owned by the state, representing a non-profit oriented public service. The main activities of MEPSO are(i) the transmission of electricity, (ii) the operating the electricity market and (iii) the management of thepower system in Macedonia. For these purposes, MEPSO holds three licenses issued by the ERC for the perioduntil 2040. For its services, MEPSO charges transmission tariffs which are set by the ERC in accordancewith MEPSO’s costs. There are 400 employees operating over 2,200 Km of transmission grid lines, and 73substations with 148 transformers with a total installed power of 6,417 MVA. 249ELEMThe state-owned joint stock company ELEM, (mentioned earlier), is one of the three electricity companiesthat emerged from the former Electricity Industry of Macedonia (“ESM”). The ESM was divided in 2005, inorder to be partially privatized (the distribution sector). ELEM is the largest energy company in Macedoniaemploying 3,800 and producing more than 95% of the total domestic energy. ELEM controls two TPPs,“Bitola” and “Oslomej” has a total capacity of 800 MW and has five HPP’s with a total installed capacity of530 MW. In the most recent energy outlook for 2010, it is envisaged that ELEM’s capacities should producetotal energy amounting to more than 6,000 GWh. 3 It is important to mention that energy experts, EnergyCommunity representatives and the EU have each pointed out the monopoly position of ELEM, asking forlegislative intervention. Bearing this in mind, it is very likely that the planned amendments of the Macedonianenergy law in 2010 will mean new, stricter regulation for ELEM and a more transparent wholesaleelectricity market.FOCUS ON ENERGYGA MA“GA MA” is the national operator of the natural gas network. The company originally started developingas a part of the “Makpetrol a.d.” and it was formally established in 2006 as a jointly owned joint stockcompany between Government and “Makpetrol a.d.” 4 The company operates and manages the natural gastransmission system and third-party access. “GA MA” complies with the domestic energy law regardingits operations and is especially dependent on the decisions and other legislation enacted by the ERC. “GAMA” is holding the license for the management of the transmission system and a license for natural gas,also issued by the ERC.2 MEPSO data, www.mepso.com.mk3 Macedonian Energy Balance for 2010, enacted 29.12.20094 The Government controls the company, Makpetrol owns much smaller share.