As of 1 February, North Macedonia has begun applying a revised framework for purchasing electricity used to offset losses in the national transmission network. The updated system, introduced under the country’s Energy Law, marks a shift in how the transmission system operator secures energy required to maintain grid balance.
The electricity transmission system operator MEPSO has already completed its first procurement cycle under the new rules, covering the February-March 2026 delivery period. Officials explained that the redesigned model positions MEPSO as a more active market participant, both legally and commercially, particularly regarding electricity acquisition for technical loss compensation. The regulatory adjustments were developed transparently to ensure equal treatment of all eligible market participants.
A key change is the introduction of multi-segment daily procurement, allowing purchases to align more closely with actual hourly loss patterns. This method improves forecasting accuracy, strengthens planning, and reduces overall financial exposure. Suppliers benefit as well, gaining flexibility to submit bids only for the periods in which they have available generation capacity.
Another major modification is the removal of the modulation coefficient, previously limiting participation for certain suppliers. Eliminating this restriction broadens market access and enables more adaptable bidding structures. Additionally, the minimum bid threshold has been lowered to 1 MW, opening opportunities for smaller domestic producers to compete in tenders. By allowing companies to offer volumes reflecting actual production and for chosen timeframes, the system encourages wider participation and enhances market competitiveness.
Once bids are submitted, MEPSO ranks them based on offered prices and quantities for each time segment. Contracts are awarded from the most economically advantageous offers, expressed in euros/MWh, until the required energy volume for each period is fully secured.
According to MEPSO, the new framework provides both operational and financial benefits, including improved flexibility in managing network losses, more precise planning, increased supplier participation, and reduced imbalance costs. Early results indicate measurable savings: electricity prices achieved in the first procurement under the revised rules were approximately 10% lower in February and 4% lower in March compared with the same months in 2025.
