North Macedonian crisis spurs move to renewable energy

Significance

Electricity companies wanted a near-38% rise amid soaring international market prices, but the ERC wanted to avoid a price shock. In November, the government declared an ‘energy crisis’ at the ERC’s request, thanks to reduced domestic electricity supply and the global market situation, and extended it in December for six months.

Impacts

• Investment in infrastructure and technologies should contribute to economic growth and create jobs.
• Care will have to be taken that closing established mines and power plants do not depress economies locally and raise unemployment.
• Rising domestic utility prices will inflict political damage on a fragile government.
• Phasing out coal will improve air quality and population health and well-being, with knock-ons for healthcare priorities and spending.