High Costs and Low Institutional Support Hinder Citizen Energy Production, Says Eco-svest
North Macedonia's new Law on the Use of Energy from Renewable Sources permits citizens, local authorities, and small businesses to collectively invest in the production, use, and sharing of green energy for the first time. The environmental organization Eco-svest acknowledges that the law defines energy communities. However, they point out significant obstacles preventing citizens from independently generating electricity. These primary challenges include substantial financial costs associated with setting up renewable energy systems and insufficient support from state institutions. Eco-svest emphasizes that these factors act as major deterrents for individuals and smaller entities looking to harness renewable energy sources. The organization highlights the need for improved institutional backing and potentially financial incentives to make citizen-led energy production more accessible and viable. Without addressing these barriers, the potential of the new law to foster widespread adoption of renewable energy among the populace remains limited.
The new Macedonian legislation enabling citizen energy communities represents a progressive step towards decentralizing energy production and promoting renewable sources. However, the identified barriers of high upfront costs and inadequate institutional support highlight a common challenge in energy transition initiatives globally. For such policies to be effective, a critical balance must be struck between regulatory frameworks and tangible financial or technical assistance. Future policy design should consider mechanisms like subsidies, tax incentives, or simplified permitting processes to bridge the affordability gap. Furthermore, robust institutional capacity building is essential to ensure consistent and effective support for emerging energy communities, thereby aligning with long-term decarbonization goals and fostering energy independence.
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