Page 104 - SE Outlook Regions 2022

The energy companies were set to receive €65mn from the state for
electricity imports and to maintain stable supply.

Meanwhile, the power producer ESM has called two tenders to supply
coal to increase production in North Macedonia's thermal power plants.

In 2021 North Macedonia relied partly on power imports, due to lower
domestic production.

Officials said that the price of electricity in North Macedonia will not
increase by more than 10% as of January 2022.

The authorities in North Macedonia are committed to switching to clean
energy sources and gradually reducing the use of coal. However, due
to the lack of electricity, North Macedonia started negotiations to import
3mn tonnes of coal from neighbouring Kosovo for its thermal power
plants.

The government announced that the construction of the Stipion solar
park, a €270mn strategic investment by the French company Akuo
Energy SAS, will start in 2022 near North Macedonia’s eastern town of
Stip.

In December 2021, North Macedonia’s government announced other
two solar power projects worth a total of €116mn to be strategic
investments.

3.8.5 Construction

North Macedonia’s Construction Cost Index (CCI) for new residential
buildings jumped by 16.7% y/y in the third quarter of 2021, accelerating
from a 12.5% y/y increase in the previous quarter. The higher costs also
increased the prices in the real estate sector lately.

The main constraints in the construction industry include increased
material costs, low demand, lack of competent staff as well as
competition in the sector.

3.8.6 Major Sectors

Major sectors in North Macedonia’s economy include manufacturing —
with an emphasis on automotive components and textiles and clothing,
agriculture and food processing, energy metals and mining and ICT.

The export-oriented manufacturing sector is highly dependent on
external demand. Fitch said that still uncertain evolution of the
pandemic in North Macedonia and key trading partners as well as
global supply disruptions impacting the car industry could represent
challenges to the recovery.

104 SE Outlook 2022 www.intellinews.com