- North Macedonia partners with SOCAR to diversify gas supplies and invest €1 billion in gas cogeneration.
- The deal strengthens North Macedonia’s energy security and aligns with the EU’s strategy to reduce reliance on Russian gas.
- While providing short-term stability, North Macedonia must continue integrating renewable energy to meet long-term climate goals.
North Macedonia signed a Memorandum of Understanding (MoU) with Azerbaijan’s SOCAR to boost energy security. The deal focuses on diversifying gas supplies and launching energy projects like cogeneration.
Elektrani na Severna Makedonija (ESM), North Macedonia’s electricity company, and SOCAR will work together to reduce the country’s reliance on imported energy. North Macedonia currently depends on natural gas from Russia and Greece, exposing it to economic and geopolitical risks. This partnership directly tackles those risks by ensuring a more stable and diverse gas supply.
SOCAR, a major energy player in the Caspian region, operates key export routes, including the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP), to supply gas to Europe.
North Macedonia seeks to secure consistent natural gas deliveries and stabilise energy prices through this deal. The move aligns with the European Union’s push to reduce dependency on Russian gas, helping North Macedonia integrate into the South European energy corridor.
North Macedonia plans to invest €1 billion in a gas cogeneration system as part of the collaboration. This system will generate both electricity and heat, optimising energy efficiency. It will address the country’s seasonal heating needs and minimise energy losses. Using cogeneration, North Macedonia aims to improve energy use while cutting CO2 emissions, a priority as it modernises its infrastructure.
This agreement also holds geopolitical weight. The partnership with SOCAR strengthens North Macedonia’s position in the Balkans, where energy diversification is becoming crucial. Countries like Serbia, which also depend on energy imports, may follow North Macedonia’s lead in securing similar partnerships.
On the economic front, the agreement promises to lower energy costs for local industries, boosting their competitiveness. However, North Macedonia’s continued reliance on natural gas raises concerns about its long-term sustainability goals. The country has committed to cutting emissions under the Paris Agreement and is working towards the European Green Deal’s objectives.
While the SOCAR partnership provides short-term energy security, North Macedonia faces a more significant challenge in the long term. Transitioning to renewable energy remains critical to meeting its climate targets and securing a sustainable energy future. The SOCAR deal represents a vital step toward energy diversification, but North Macedonia must keep investing in renewable energy sources.
In summary, North Macedonia’s deal with SOCAR boosts energy security by diversifying its gas supply and advancing gas cogeneration projects. The partnership enhances North Macedonia’s role in the regional energy landscape. However, the country must balance its use of natural gas with ongoing investments in renewable energy to achieve long-term sustainability.