AmCham Macedonia Fall 2013 (issue 39) | Page 8

ANALYSIS Macedonia’s Energy Market Transformation Interview with Werner Hengst, Chairman of the Management Board of EVN Macedonia that their implementation beginning immediately. This requires cooperation on all levels and partnership between the public and private sector, but also regional cooperation. It is crucial for the development of the energy sector and its ability to meet consumer needs. It’s a broader view, which of course has to start from the foundation. What do I mean by this? To provide common action and achieve effects at the national and regional level, each stakeholder must first anticipate the needs that arise within its sphere of influence. Keeping this in mind, we worked on creating a framework that would take into account the future needs of the market, key economic and political indicators and we made a long-term Master Plan for investing in the distribution system in the following years. With the exception of clearly defining all future projects, this document is the foundation for our involvement in energy development at the national and regional level. EM: Regionally speaking, what are the big energy challenges in the next several decades? Given that Macedonia is part of a region characterized by a general deficit of energy and growing economies, it will definitely be a challenge to provide a stable supply of energy in the future. It is especially important for this region because most of these countries are dependent on one fuel, as is Macedonia’s case. Undoubtedly, the demand for energy will grow and countries are increasingly becoming dependent on imports. To ensure long-term, reliable supply of electricity, the biggest challenges we must face as soon as possible are those related to providing reliable energy from a variety of sources and with greater energy efficiency in everyday life. Energy production is essentially an activity based on long-term and sustainable plans; it is critical, however, 8 EM: Is the situation ripe for formation of a regional energy market? Market liberalization is a process that is in different stages in different countries in the region. Market liberalization and the regional energy market concept have a common goal: to create a common market. It is actually in line with the Athens memorandum that regional countries signed in 2005, aimed at creating a single energy market for electricity and gas that would function under the same standards as those of EU countries. This document has determined the development of the energy market in the region and today, all of the changes and reforms that have been made have arisen from it. Market players have already implemented the necessary prerequisites to enable the implementation of these changes, but the goal remains the same: reliability of supply and ensuring long-term energy sources. Emerging Macedonia Fall 2013 Issue 39