PV power station

Integrated Solar Energy and Storage Systems

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Integrated Solar Energy and Storage Systems

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Alternative Energy
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Responsible Consumption and Production (SDG 12) Climate Action (SDG 13)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9) Sustainable Cities and Communities (SDG 11)

Business Model Description

Develop and operate decentralised solar energy systems, including residential, commercial, and community-based photovoltaic installations, complemented by advanced battery storage solutions for grid stability and self-sufficiency. Monetise through direct sales, leasing, power purchase agreements, and energy-as-a-service models (Subscription-Based or Pay-Per-Use) to enhance energy resilience and affordability.

Expected Impact

Expands renewable energy access, enhances grid resilience, reduces fossil fuel reliance, and fosters economic growth through solar and storage solutions.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Republic of North Macedonia: Pelagonia
  • Republic of North Macedonia: Southeastern
  • Republic of North Macedonia: Vardar
  • Republic of North Macedonia: Skopje
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Renewable Resources and Alternative Energy

Development need
The Republic of North Macedonia relies heavily on imported fossil fuels. This increases its energy vulnerability and carbon footprint. The need for decentralized renewable energy solutions, particularly solar, is critical to ensuring energy security, reducing long-term costs, and supporting the transition to a low-carbon economy. (1)

Policy priority
Prioritize renewable energy expansion, aligning with EU directives on green transformation. Policies promote investment in solar energy through tax incentives, streamlined permitting for photovoltaic systems, and integration into the national grid. PPPs and international funding sources, including EU Green Deal initiatives, can support the sector’s growth. (1-8)

Gender inequalities and marginalization issues
Women and marginalized communities have lower participation in energy sector employment and decision-making. Expanding decentralized solar energy systems can empower women through job creation, skill development, and entrepreneurship in energy solutions. Additionally, rural electrification can improve access to education, healthcare, and digital services for underrepresented communities. (29)

Investment opportunities introduction
The renewables sector offers promising investment potential across renewable energy, energy efficiency, sustainable agriculture, and natural resource management. Key areas include clean energy infrastructure, modernized grid systems, energy-efficient building upgrades, and climate-resilient agricultural technologies. (1, 3)

Key bottlenecks
Regulatory uncertainties, slow permitting processes, and limited access to financing for small-scale energy producers hamper sector expansion. Grid infrastructure requires upgrades to accommodate decentralized energy generation.A lack of local expertise in battery storage and smart energy management technologies calls for targeted capacity-building programs (30)

Sub Sector

Alternative Energy

Development need
The country has high solar potential but underutilized capacity in distributed solar power generation. Expanding decentralized solar systems with battery storage is essential for the stability of the grid, the reduction of energy imports, and energy security. This aligns with national energy transition goals and enhances resilience against supply disruptions (6)

Policy priority
The NDS and the Energy Law prioritize solar energy expansion, supporting feed-in tariffs, tax incentives, and streamlined permitting for photovoltaic installations. EU alignment policies promote on-grid and off-grid solar investments, while green financing mechanisms encourage private sector participation. (1,7)

Gender inequalities and marginalization issues
Women and marginalized groups are underrepresented in the energy sector. Decentralized solar projects can improve access to electricity in underserved regions, enhance economic opportunities and promote social inclusion. Training programs and policy incentives can increase female participation in technical and managerial roles in the renewable energy sector. (31)

Investment opportunities introduction
The solar power generation subsector offers diverse investment avenues, including residential and commercial rooftop solar, industrial-scale installations, and community-based microgrids. Battery storage integration enhances profitability by optimizing energy self-consumption. EU funding and private sector involvement present long-term revenue potential.

Key bottlenecks introduction
Challenges include slow regulatory approvals, high upfront costs for storage solutions, and grid infrastructure limitations for distributed energy resources. Access to financing for small-scale solar projects remains a barrier. It requires improved subsidy mechanisms and risk-mitigation strategies to attract investors and facilitate sector growth (22)

Industry

Solar Technology and Project Developers

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Integrated Solar Energy and Storage Systems

Business Model

Develop and operate decentralised solar energy systems, including residential, commercial, and community-based photovoltaic installations, complemented by advanced battery storage solutions for grid stability and self-sufficiency. Monetise through direct sales, leasing, power purchase agreements, and energy-as-a-service models (Subscription-Based or Pay-Per-Use) to enhance energy resilience and affordability.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

5% - 10%

North Macedonia aims to add 1 GW of solar capacity by 2030, supported by the EBRD and PPPs, with an estimated investment of $1 billion based on regional benchmarks of ~$1 million per MW. (12)

Solar energy in the Western Balkans shows strong growth, with Albania’s Karavasta Solar Park (140 MW) developed for ~$1.17 million/MW [15]. The cost for businesses to install rooftop solar systems in Serbia ranges from approx. €550,000 to €650,000 per MW. For residential installations, the cost is approx. €1 million to €1.2 million per MW. (16)

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

According to the International Renewable Energy Agency (IRENA), the country has the technical potential to generate over 8 GW of renewable electricity, of which roughly 2 GW could be cost-competitive. (18)

The average installation cost for solar photovoltaic (PV) systems in North Macedonia is approximately €0.80 per watt (~ €800,000 per MW). Businesses typically report internal rates of return (IRR) ranging between 10% and 15%. (31)

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Structured interviews with owners and managers of solar power installation firms reveal a timeframe of 8 years. (22, 31)

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

Solar energy projects require high upfront investment in panels, battery storage, and grid integration. (18, 22)

Market - Highly Regulated

The renewable energy sector is governed by complex regulations, including permitting, grid connection rules, and compliance with EU climate policies. Changes in feed-in tariffs and government incentives impact investment feasibility. (7)

Capital - Requires Subsidy

Government incentives, feed-in tariffs, and international development partners' (particularly EU-backed) financial support are essential for ensuring the financial viability of solar projects. Without subsidized loans, grants, or premium tariffs, market penetration remains limited.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

The Republic of North Macedonia relies on fossil fuel imports, causing price volatility and energy insecurity. Decentralized solar energy and storage enhance local energy resilience, reduce electricity costs, and support sustainable energy independence. (32)

Integrated solar energy and storage systems reduce CO₂ emissions by replacing coal and fossil fuel-based electricity with renewable solar power, contributing to EU Green Deal goals and North Macedonia’s carbon neutrality targets. (31)

Expanding solar energy access in rural and semi-urban areas boosts economic opportunities, creates green jobs, and improves energy access for marginalized communities, fostering inclusive development. (36, 37, 38)

Gender & Marginalisation

Integrated solar energy and storage systems promote STEM training, technical jobs, and leadership roles for women in the renewable energy industry, addressing gender disparities in employment and decision-making. (39)

Low-income and rural women-headed households struggle with high energy costs. Affordable solar energy solutions reduce financial burdens and improve access to clean, reliable power. (32)

Limited financing options prevent women-led businesses and farms from adopting solar energy. Targeted subsidies and green loans support inclusive economic empowerment in renewable energy. (32, 33)

Expected Development Outcome

Integrated solar energy and storage systems expand solar energy adoption, lower electricity costs and reduce energy poverty and reliance on imported fossil fuels.

By replacing coal-based electricity with solar power, integrated solar energy and storage systems reduce CO₂ emissions, improve air quality, and supports North Macedonia’s carbon neutrality and EU Green Deal commitments.

Integrated solar energy and storage systems foster green jobs in solar panel manufacturing, installation, and maintenance, empowering youth, women, and marginalized workers in the renewable energy sector.

Gender & Marginalisation

Decentralized solar solutions lower electricity costs for low-income and rural women-headed households, improving financial stability and access to clean energy.

Targeted green loans and subsidies enable women-led businesses and female farmers to adopt solar-powered solutions, fostering economic empowerment and sustainable livelihoods.

Primary SDGs addressed

Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

7.2.1 Renewable energy share in the total final energy consumption

Current Value

Share of electricity from renewable sources in total electricity production was 32.1% in 2023. (17)

Target Value

National Energy and Climate Plan envisages increasing the share of renewable energy sources in gross energy consumption to 38% by 2030; 66% share in gross electricity production; 45% share in gross final energy consumption for heating and cooling; and 10% in final energy consumption in transport (8)

Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production

12.a.1 Installed renewable energy-generating capacity in developing countries (in watts per capita)

Current Value

Renewable energy sources contributes 1,355 MW, equivalent to 0.753 kW per capita. (40)

Climate Action (SDG 13)
13 - Climate Action

13.2.2 Total greenhouse gas emissions per year

Current Value

11.37 Mton CO2eq in 2023. (21)

Target Value

By 2030, the NECP envisages 82% reduction in GHG net emissions compared to 1990 levels, 66% reduction in emissions in the energy sector; 45% reduction in emissions in the industrial processes and product use sector; 29% reduction in emissions in the agriculture sector; 95% reduction in emissions by increasing the forest fund; 21% reduction in emissions in the waste sector. (8)

Secondary SDGs addressed

Good health and well-being (SDG 3)
3 - Good Health and Well-Being
Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure
Sustainable Cities and Communities (SDG 11)
11 - Sustainable Cities and Communities

Directly impacted stakeholders

People

Households, farmers, and small business owners benefit from decentralized solar energy solutions, reducing electricity costs and improving energy reliability. Rural communities, including women-led households and youth entrepreneurs, gain access to affordable and sustainable power.

Gender inequality and/or marginalization

Rural communities, including women-led households and youth entrepreneurs, gain access to affordable and sustainable power

Planet

Solar energy adoption reduces CO₂ emissions by decreasing reliance on fossil fuels, improving air quality, and mitigating climate change. Battery storage enhances grid stability, minimizing energy waste. Proper panel recycling programs can address electronic waste challenges

Corporates

Manufacturers, installers, and technology providers in the solar energy supply chain experience increased demand for photovoltaic systems, inverters, and battery storage solutions. Commercial property developers integrate solar into new projects.

Public sector

Ministry of Energy, Mining, and Mineral Resources. Municipalities.

Indirectly impacted stakeholders

People

Consumers benefit from more stable electricity prices due to increased solar energy integration into the grid. Job seekers, including young professionals and technical workers, gain employment opportunities in solar panel manufacturing, installation, and maintenance.

Planet

A shift to renewable energy reduces industrial and household reliance on coal and other fossil fuels, leading to lower emissions, reduced air pollution, and improved biodiversity. Increased energy efficiency and reduced transmission losses further minimize environmental strain.

Corporates

Businesses with high energy consumption (Alkaloid, Makstil, etc.) benefit from more predictable and lower electricity costs. Supply chain industries gain from lower fuel costs if electrification increases through renewable-powered grids

Public sector

Educational institutions and research centers see increased funding for renewable energy research, fostering innovation and capacity-building. The health sector indirectly benefits from reduced air pollution-related diseases.

Outcome Risks

Improper disposal of solar panels and batteries could lead to toxic waste accumulation, harming ecosystems if recycling policies and infrastructure are not adequately implemented.

Expanding decentralized solar systems without grid modernization may cause voltage fluctuations, disproportionately affecting rural and lower-income communities with outdated infrastructure.

High upfront costs of solar and battery storage may exclude low-income households and small businesses from benefiting, widening energy affordability gaps without proper financing options.

Changes in government incentives, subsidies, or feed-in tariffs could disrupt investment confidence, making solar projects financially unsustainable and slowing adoption rates.

Without targeted training and hiring policies, women may remain underrepresented in solar energy jobs, especially in STEM and leadership roles. They may face limited inclusion in the green economy.

Impact Risks

Without adequate grid upgrades, excess solar energy may not be efficiently integrated, leading to curtailment, revenue losses, and slower adoption of decentralized energy systems.

Bureaucratic delays in permitting, subsidies, or feed-in tariffs could discourage private investment, slowing the scalability of solar and storage projects across North Macedonia.

Dependence on imported solar panels, inverters, and batteries may lead to supply chain vulnerabilities, price volatility, and delays in project deployment.

Impact Classification

C—Contribute to Solutions

What

Expands renewable energy capacity, reduces fossil fuel dependence, enhances energy security, and lowers electricity costs while mitigating GHG emissions and promoting sustainability.

Who

Benefits households, businesses, rural communities, and agribusinesses by providing affordable, reliable solar energy. Focus on rural and semi-urban areas with limited grid access.

Risk

Grid instability, financial barriers, policy uncertainty, and supply chain constraints may delay scalability and adoption. Gender disparities in green jobs could limit workforce inclusivity.

Contribution

Directly increases energy access, stabilizes electricity supply, and reduces environmental impact through solar and battery storage adoption, policy incentives, and job creation.

How Much

Targets 750 MW of new solar capacity by 2040, serving thousands of households and businesses, cutting CO₂ emissions, and reducing electricity imports and fossil fuel use (8)

Impact Thesis

Expands renewable energy access, enhances grid resilience, reduces fossil fuel reliance, and fosters economic growth through solar and storage solutions.

Enabling Environment

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Policy Environment

The NDS 2024-2044, outlines the key strategic priorities in the country's green transition. (1)

Strategy for Development of the Energy Sector outlines reference, moderate transition, and green scenario. Moderate transition scenario forecasts 39% of renewable energy share in total energy consumption by 2040. (6)

National Energy and Climate Plan, envisages increase of renewable energy capacity, specifically targeting a 20% share of photovoltaic (PV) energy in the electricity mix by 2030, supporting the expansion of rooftop solar installations and decentralized energy generation. (8)

Smart Specialization Strategy encourages the development of energy self-sustainable buildings, widespread utilization of renewable energy, and the introduction of innovative energy-efficient technologies​. (2)

Financial Environment

Decree on Measures for Supporting Electricity Production from Renewable Energy Sources provides for Feed-in Tariffs (fixed payments per kWh) for small-scale producers of renewable energy and Feed-in Premiums (FiPs), additional payments for renewable energy producers. (42)

Tax Exemptions in Technological Industrial Development Zones. Investors are eligible for tax exemptions for up to 10 years, including relief from profit tax and personal income tax. Additionally, there are customs duty exemptions for imported equipment and raw materials (35)

Green Finance Facility, supported by EBRD and local financial institutions, provides loans to small and SMEs and households for energy efficiency and renewable energy projects (cash-back incentive of up to 10%, refunds for households of up to 30%). (28)

Regulatory Environment

Energy Law establishes the legal framework for the development and integration of renewable energy sources, including provisions that facilitate the deployment of integrated solar energy and battery storage systems. (7)

Law on Construction governs the permitting, design, and installation standards for renewable energy infrastructure on buildings and land. (23)

Decree for Preferential Tariffs of Electrical Energy (Official Gazette 56, 17.04.2013) establishes the framework for preferential tariffs aimed at promoting electricity generation from renewable energy sources. (41)

Rulebook on Renewable Sources of Energy provides detailed regulations for the development and operation of renewable energy power plants. It encompasses aspects such as electricity transfer, wind potential measurement, guarantees of origin, and the maintenance of registers. (24)

Law on Construction Land governs the allocation, use, and management of construction land, which is crucial for the development of infrastructure projects, including renewable energy installations like integrated solar and battery storage systems. (26)

Marketplace Participants

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Private Sector

Solar panel manufacturers, battery storage providers, and energy technology firms (e.g., Mey Energy), renewable energy startups, commercial property developers, financial institutions. EVN home (universal supplier)

Government

Ministry of Energy, Mining, and Mineral Resources, Regulatory Commission for Energy, MEPSO, Ministry of Agriculture, Forestry and Water, Ministry of Environment.

Multilaterals

European Bank for Reconstruction and Development (EBRD) - International Finance Corporation (IFC) European Investment Bank (EIB) - UNDP, UNECE Sustainable Energy.

Non-Profit

Non-Profit: Local environmental NGOs (e.g., Association of Solar Producers "Solar Macedonia", Eko-svest, etc.)

Public-Private Partnership

Government-private partnerships in decentralized solar microgrids. Eg., the municipality of Kavadarci approved numerous applications for rooftop photovoltaic installations, totaling approximately 17.7 MW in capacity. (34)

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
semi-urban

Republic of North Macedonia: Pelagonia

The Renewable Energy Siting Map identifies exact locations in Pelagonia region that are suitable for solar-power generation.The slope of the land and distance to the grid are important criteria to consider when selecting the most suitable locations. (19)
rural

Republic of North Macedonia: Southeastern

The region possesses non-arable land that is suitable for photovoltaic instalments. The exact locations are GIS-mapped, taking into account locations important for birds, terrain characteristics, and access to grid (20).
rural

Republic of North Macedonia: Vardar

The Vardar region has the highest potential for installing photovoltatic stations (solar parks) with convenient distance to the electrical grid. These locations are with limited vegetation (small biodiversity) and limited Emerald regions (20)
semi-urban

Republic of North Macedonia: Skopje

The renewable energy siting map highlights multiple locations on the outskirts of Skopje that meet the necessary meteorological conditions, terrain characteristics, and non-arable land requirements. (20)

References

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