Focus on Energy, 2010 - Karanovic & Nikolic

Besides the regulation of the electricity, gas, oil and geothermal energy markets, the Energy Law also setsthe goals of the energy policies, defines energy activities and promotes energy efficiency and renewableenergy. The energy activities that can be performed under the Energy law fall under 26 specific descriptions,such as the:Furthermore, the Energy Law sets the Government as the energy policy maker, through the preparation andenactment of the Strategy. This national document, that is supposed to initially cover the period 2010-2020with a longer term vision until 2030, is to be enacted this year. On the other hand, the Energy Law establishesthe ERC as the independent body regulating the energy markets, especially in the determination ofpre-set prices and tariffs, the enacting of various by-laws, the issuing of permits and the issuing of licensesregarding energy activities and the monitoring of the energy sector in general.LicensesIn order to be able to perform energy activities in Macedonia, it is necessary to acquire an energy licenseissued by the ERC. Energy licenses are issued for a period of between 3 to 35 years, depending on the activity,the period of time for the use of the energy goods (e.g. concession agreement), as well as the submittedrequest of the energy activity performer. It is important to mention that the energy licenses, when granted,cannot be transferred to another person or entity.51Regarding the energy licenses, the ERC adopted the Rulebook on the Conditions, Method and Procedure onIssuing, Altering, Extending and Withdrawing Energy Activity Licenses (“Licenses Rulebook”). Applicants areobliged, along with the license application, to issue a letter of intent, a declaration on the reliability of theapplication and the data provided, and to submit a substantial number of documents.The ERC is obliged to issue an energy license within 90 days of the receipt of an application, once all thepreconditions are met. Finally, no energy license is required for the following energy activities:distribution systems;with biofuels;with biofuels, in road or railway tanks or by other transportation means.FOCUS ON ENERGYConstruction of Energy FacilitiesAccording to the Energy Law, domestic and foreign investors can build new power plants with an installedpower capacity of more than 1 MW for the production of electricity, heat and the combined production ofelectricity and heat, only when they are holding an authorization that has been issued by the Government.However, if the performing of the energy activity is conditioned by the requirement of a concession, thepreconditions for the construction of such a power plant are arranged through the concession agreementand no subsequent authorization is required. Also, if the installed power of the PP to be constructed is under1 MW, there is no requirement for Governmental authorization. The submitted documentation, complete