"When I started working in energy sector I had a lot of obstacles because 90% in this profession are men. Among the 17 countries that I worked in, only in Republika Srpska and Greece there were women on executive positions. I also had a few unpleasant situations when some directors did not want to have a meeting with a female discussing on energy topics. However, as anywhere, quality always surfaces and over time these obstacles have passed. I can say that women have a different approach in many situations, can cope with stress, multitasking, have different methods of work and the results eventually say everything. I hope that in Macedonia we will also see a woman in executive energy positions in the future for the first time," Sanja Bozinovska, an energy expert located in Prague, said in an interview with Tourism and Management Magazine. She believes Macedonia is undermining the energy plan because the authorities do not have a strategy, knowledge and capacity for serious energy policy in Macedonia.
The energy crisis has stimulated the domestic electricity production, but it is still not enough to restore production to the level ten years ago. Where has Macedonia failed on the energy plan?
Energy is an area that is planned long term and certainly problems and solutions do not happen immediately. Unfortunately, the energy crisis occurred when the ESM had a problem engaging and making use of its production capacities at maximum. Any construction of energy capacities requires serious preparation, finance, planning, operational processes and time. In Macedonia only a 36 MW wind park and a 10 MW photovoltaic power plant in Oslomej have been built in recent years, however that is insufficient. All photovoltaic plants that are built are in private ownership, which means that at the enormous electricity prices of last year, many individuals and companies decided to invest in photovoltaic power plants on their own. The energy produced is sold to energy traders at energy exchange prices, which means that Macedonia as a country does not have a plan for purchasing of this electricity. We are aware that REK Bitola is a very old production capacity and that 70% of electricity comes from there, and we do not yet have any alternative to REK Bitola (in recent years it is almost impossible for REK Bitola to operate at full power, and we are also witnessing constant technical problems). In 2022, 5,634 gigawatt-hours of electricity were produced in Macedonia, while in 2010 6,774 gigawatt hours were produced. The structure of electricity production last year from thermal plants (2,621 gigawatt hours) is as much as 38.7% less than in 2012 (4,277 gigawatt hours). In addition, production from REK Bitola decreased by one-third (it was 3,700 in 2010, and in 2022 it was 2,354 gigawatt hours), and from the Oslomej TPP it was halved from 577 to 267. The most drastic decline was in hydropower plants, where in 2010 2185 gigawatt hours were produced, and in 2022 only 985. These are serious figures that need to be analyzed. The current energy balance of the state also includes electricity produced by Te-To, which is privately owned company and the energy is sold under strictly market conditions. Therefore, the answer to this question is lack of strategy, knowledge and capacity for serious energy policy in Macedonia.
As an expert and person that knows the situation in the energy sector, who do you think is responsible for the energy crisis?
The price of fuels in the EU has increased as a result of the situation between Russia and Ukraine, leading to concerns regarding the energy security. Russia's decision to suspend gas deliveries to several EU member states further affected the situation. This deliberate reduction in gas deliveries by Russia is the main reason for the increase in EU prices, which has affected the rapid price of electricity produced in gas plants, as well as on electricity prices as a whole.
After the war began in Ukraine and the rise in energy prices, natural gas demand in the European Union decreased in 2022 for 55 billion cubic metres or 13%, the largest decline in history. The reduction is equivalent to the amount of gas needed to supply over 40 million homes. Changes in the energy mix, economic activity, weather conditions, behavioral changes and other factors were responsible for this dramatic change in natural gas consumption. Also, milder winter temperatures certainly played an important role. However, not all-weather influences have reduced gas use. Low rainfall in southern Europe has led to a very bad year for hydropower and increased the need for electricity from gas. High prices have also played a significant role in reducing demand, especially in industrial sectors that use gas intensively.
The cost of all turbulence and crises will eventually hit the pocket of citizens. Why is Macedonia in such an energy situation and who will pay the price?
When it comes to strategic issues such as energy, we must all agree that synergy is needed from the best experts in the country and overcoming political membership. Last year 250 milion euros were transferred to ESM, serious funding that could have been used much better. Companies were left to buy electricity at enormous prices. Macedonia's largest industrial capacity, Feni, has ceased operating since July 2022. All neighboring countries had financial support for the industrial end-consumers. For comparison in Macedonia companies were paying 500 euros for mwh, while in Serbia that price was 75 euros, in BiH 65 euros, and in Bulgaria the state subsidized the price difference. For households, prices in Kosovo are 6.5 euro cents, Bosnia 8 euro cents, Macedonia 9.3 euro cents, Hungary 9.4 euro cents.
In 2022 electricity losses cost us an incredible 157m euros, which we paid through electricity bills and in 2021 they were 100 million euros. There are still number of users who do not pay for electricity at all, and in the end that price is paid from the conscious citizens. The price will certainly be paid by citizens, and this is seen in new debts, issuances of new government bonds and similar.
There are strategic energy partners of the government, however they are not applicable. Why and who is contemplating with their realization? Do you think there is insufficient energy managerial staff in the energy sector?
If we look at the website https://vlada.mk/strateski-investicii, we will see that there are 10 strategic investments, the first of which was made on 19 July 2021. So far, nothing has been publicly discussed about these investments, negotiations are being conducted in 4 eyes. First, the total installed power of all these investments is unrealistic for Macedonia, i.e. I do not know if anyone is seriously dealing with Macedonia's energy balance and technical capabilities. It certainly sounds tempting and we speak everywhere that we are leaders in energy investment, but we should still be realistic. My question is what is the benefit to Macedonia from all these strategic investments? All technology will be imported, including panels, the usage of the land (these are large surfaces) is still debatable, new employment will be non-existent except for the guards of these plants and – the most important issue – electricity. All these companies will trade electricity under market conditions, i.e. I have never read that Macedonia will receive a percentage of the energy produced for its own production or certain megawatt hours at a lower price. If there was a professional managerial staff, in these almost two years we would have had at least one investment realized (knowing that 2–3 months is needed for the full setting up of the PV).
In Macedonia, it seems that any 5,000-euro merchant company can trade electricity and make millions of debts. Why do we have such legislation?
We witnessed millions of debts made by several companies to MEPSO. More than 12m euros are not charged, there is no prospect of charging a single euro, and no one bears the consequences for this damage, which will eventually be paid by citizens. Accountability must be taken and strict legislation in relation to electricity trade must be established. In many countries, there is simply no possibility of debt to the system operator (state), as there are technical services that monitor the transactions of all merchant companies on a daily basis, and their operations must always be covered by the bank guarantees. The reality is that the new companies (with the same address, similar company name, cases where the same employees appear as part of new companies) work again. Therefore, there is a system error for which something must be done. In Serbia a bank guarantee of minimum one million euros must be submitted to the system operator EMS, which means that electricity trade is serious activity, and companies that want to do energy trading must be liquid and have financial resources.
The question of why we have such legislation can only be answered by the competent ministry.
MANU's energy strategy envisions the closure of two blocks of TPP Bitola by 2040. Under what conditions and who would compensate for their importance for minimum energy independence?
It is very easy on paper to write many things, such as strategic investments. The reality is that Macedonia receives most of the electricity from REK Bitola. It is true that the trend is renewable energy sources and it is great that we have a tender for Cebrene and for the construction of a hydropower plant. However, when would the construction of that plant be implemented? We hear daily about avoiding use of coal, but just to note that nuclear plants began to close a few years ago and last year energy from nuclear plants received a green mark in the EU under certain conditions. In Macedonia, domestic lignite reserves are exhausted, which can be exploited economically. Maintenance in the operational life of TPP Bitola depends on the transport of lignite with similar characteristics located in Greece or Kosovo. The current crisis may delay the current trend in the short term – a change from coal to renewable sources, but the implementation of such a policy will not change. There will be no electricity generation in EU countries from plants that use solid fossil fuel except CCS-technology plants. It is the technology of fully catching greenhouse gases from the burnt solid fossil fuel and their controlled exploitation and/or underground storage. We need to know that this technology is very expensive and Macedonia will find it difficult to implement. It is consequential that Macedonia will replace solid fossil fuel with natural gas.
We must have a national plan for building energy capacities, capacities that must include base energy production (renewable energy is not base energy – it must be balanced in our energy system) and we all take energy extremely seriously because hundreds of millions were spent on gas, coal, energy supplies, and we do not have serious energy capacity.
"Macedonia is my first home and will remain so. I grew up in Macedonia, I made the first friends I socialize with today and the foundation of my education. My parents and friends are in Macedonia, I often come and feel good. I promote it many times everywhere in the world and recommend visiting it. Unfortunately, however, I have to say that many things have somehow not changed for years. We have wonderful tourist places that can be compared with European and world destinations. Ohrid is a world destination and deserves to be on the map of must visit destinations. I'm sure we can do much better. There is a lack of serious promotion of all the beauty we have."
What is the situation in Europe? Is there electricity on the exchange markets and how are the price movements?
In Europe, winter has been very mild this year, countries have reduced gas and energy consumption and prices are stable. The European Union has reached an agreement to limit prices, so prices of 500–600 euros per megawatt-hour are not repeated. This year, prices range around 100–120 euros per megawatt-hour. 2024 can be purchased on the Hungarian energy exchange HUPX for 158 Euros, in Austria 2024 it trades for 158 Euros, 2025 for 133 Euros, 2026 for 119 euros, in the Czech Republic next year it trades for 145 euros and 2025 for 125 euros, in France the following year is 199 euros and 2025 is 128 euros. In Germany, 2024 is traded for 145 euros and 2025 for 123 euros. The energy markets are liquid. There is enough energy, demand and supply are crucial for the appropriate prices and quantities.
In Europe, it is a priority, but how much in the country is energy protection stimulated by building energy sustainable buildings?
Energy efficiency has been a trend in the EU for several years and, of course, Macedonia as a country seen in the European family should apply these practices. From what I can read, and there is little data, there is little utilization of access funds for energy efficiency in Macedonia. There were reliefs in the law on the construction of photovoltaics up to 40 kW, which is good step forward. However, for comparison only, the procedure to build a PV plant and a luxury big hotel is the same. I think there are too many administratively unnecessary procedures that need to be changed in the future. I hope that in the future we will have a Ministry of Energy and sector that will deal exclusively with application to available funds and communication with all foreign institutions that offer energy efficiency funds.
You are considered a significant expert in the energy sector. What is your advice on Macedonia's future in this field?
Engaging renowned experts from Macedonia and the region and approaching towards effective solution of the energy situation in Macedonia. We still don’t have a line with Albania and a few years ago Italy and Montenegro connected with an underwater cable. We're years late. It is the state that needs to buy the energy produced by photovoltaics, professionally operate the lake accumulations, transparently to purchase energy for ESM, because the same companies with a few cents difference receive millions of tenders over a long period of time, and avoid concluding contracts in four eyes. Also, to revise the existing energy network and what needs to be built and to know what the possibilities for the next 5-10-20 years are, and last but not the least the unauthorized “withdraw of energy” from ENTSO that happened last year not to happen again.
The most important advice is for people who will be in charge of creating and implementing Macedonia's energy policy to work exclusively in the interests and for the good of citizens because we must build something that will remain for future generations. My wish is for Macedonia one day to be a net energy exporter because we are a country with many sunny days and we have quality and professional experts in this sector.
Bozinovska, as a young, ambitious person, how do you deal with challenges in the energy sector, where men dominate?
When I started working in the energy sector, I had a lot of obstacles because 90% in this profession are men. Of the 17 countries where I worked only in Republika Srpska and Greece, there were women on executive positions. I also had a few unpleasant situations when some directors did not want to have a meeting with me (a woman). However, as anywhere, quality always surfaces, so over time these obstacles have passed. I can say that women have a different approach in many situations, can cope with stress, multitasking, have different methods of work and the results eventually say everything. I hope that in Macedonia we will also see a woman in key energy positions for the first time in the future.
You live and work in Prague. What are the advantages in the work system and do you miss Macedonia?
I went to study in Prague in 1998. Since then, Prague has experienced an incredible transformation in every way. Czech Republic can now freely compare with Germany and the quality of life there. There is a system of values, knowledge is appreciated, and labor is valued. As a country that is in the center of Europe, it offers more opportunities to educate, improve, exchange experiences, contact with experienced leaders, managers from whom much can be learned. The most important thing is that quality is recognized, valued and there is a corporate culture that already competes at a high level. Of course, the system is not the most perfect, but there is a big difference with the Macedonian system.
Macedonia is my first home and will remain so. I grew up in Macedonia, I made the first friends there, I socialize with them today and the foundation of my education is there. My parents and friends are in Macedonia, I often come and feel at home. I promote it many times everywhere in the world and recommend to everyone to visit. Unfortunately, I have to say that many things have somehow not changed for years. We have wonderful tourist places that can be compared with European and world destinations. Ohrid is a world destination and deserves to be on the map of must visit destinations. I'm sure we can do much better. There is a serious promotion of all beauty such as the Prespa Region, Krushevo, Berovo, Mavrovo, Numerous waterfalls, monasteries, churches, Kokino, Heraclea, Stobi, promotion of our gastronomy, our events such as Ohrid summer festival, Vevcani carnival, Galicka wedding, Skopje jazz festival, wine industry, and not to forget the incredible hospitality by which we are recognizable. For all these we must have infrastructure – highways, railways, marketing promotion, and we must certainly work on digitalization – we live in a world of applications and social networks.