North Macedonia’s solar boom reshapes the power mix, pushing hydropower to third

North Macedonia’s electricity system is undergoing a clear shift toward variable renewables, with solar now overtaking both hydropower in installed capacity and cogeneration in electricity output for the first time. The change matters for investors and grid operators because it alters generation economics, dispatch patterns, and the need for balancing tools as renewables take a larger share of the national mix.

Solar becomes the second-largest source as capacity grows

In its annual report, the Regulatory Commission for Energy (RKE) said North Macedonia increased total installed electricity generation capacity by 178.6 MW during 2025. Most of that growth came from new solar installations totaling 115 MW, alongside two newly commissioned wind farms with a combined capacity of 64 MW.

As a result, total solar capacity reached 962.6 MW, placing solar as the country’s second-largest generation source after thermal power plants, which remain largest at 1,034 MW. Hydropower fell to third place with 719.9 MW of installed capacity.

Renewables’ share rises to 46.4% while thermal still leads generation

Renewable electricity production continued to climb in parallel with capacity additions. Output from renewable sources rose by 11.43% year-on-year, and renewables’ share in the national electricity mix increased from 41% to 46.4%.

Even so, thermal power plants remained the biggest contributor to total generation at 35.39%, followed by hydropower at 21.57%. Solar accounted for 19.28% and cogeneration plants for 18.23%.

Solar output surpasses cogeneration for the first time

The market’s most notable structural change was operational rather than just capacity-related: solar generation exceeded cogeneration output for the first time in 2025. Solar power plants produced about 1,180 GWh, compared with roughly 1,116 GWh generated by cogeneration units.

RKE highlights growth in variable renewables and stable overall production

RKE Chairman Aco Ristov said total electricity production reached 6,123 GWh in 2025 and was broadly stable versus the prior year. He pointed to strong expansion in variable renewables—wind generation increased by 32.5%, while solar output rose by 27.7% year-on-year—underscoring how quickly new projects are translating into higher energy yields.

Batteries move from concept to licensed deployments

The regulator also indicated that battery storage is beginning to play a more concrete role in supporting the transition toward higher renewable penetration. During 2025, RKE issued seven licenses for electricity storage systems linked to solar projects, totaling an installed capacity of 7.1 MW.

Ristov said battery systems will become increasingly important for balancing surplus renewable generation and improving system efficiency by shifting electricity from periods of oversupply to peak demand hours. He added that storage deployment is expected to reduce overall system costs by strengthening grid balancing and enabling more efficient use of renewable energy resources.

Taken together, RKE’s figures show a rapid acceleration of solar development that is already changing both ranking by installed capacity and relative contribution to electricity output—while also prompting policy attention on storage as variable generation grows.