More Trading, More Flexibility – MEMO’s New Direction

The growth of solar and wind power generation is bringing new challenges for the electricity system, while also changing the way the market operates. The introduction of intraday trading, the possibility of negative prices and the development of the guarantees of origin market are all part of the process through which North Macedonia is seeking to bring its market closer to European standards. We discuss these changes and the next steps with Zoran Đorđievski, Director General of the National Electricity Market Operator (MEMO).

Q: Mr Đorđievski, in May this year, MEMO launched the intraday electricity market. What has its operation so far shown, and to what extent has the introduction of this segment changed the way market participants manage imbalances, particularly given the growing share of solar and other variable renewable energy sources?

A: The introduction of the intraday market represents a significant step in the further development of North Macedonia’s electricity sector. This segment officially began operating on 6 May this year, following the successful completion of preparatory and implementation activities during 2025.

Its operation so far shows that market participants recognise the value of this new market mechanism. We currently have 24 registered participants, which is a good indication that there is interest in the opportunity to adjust their positions throughout the day, as close as possible to the actual delivery time.

This is particularly important given the growing share of renewable energy sources. For these producers, generation depends to a large extent on weather conditions and may deviate from the quantities planned in advance. With an intraday market in place, participants have the opportunity to respond to such changes in a timely manner and adjust their positions accordingly.

In this way, the market provides them with an additional tool for better managing imbalance risk, as well as for more efficient planning of generation and consumption. Ultimately, this means greater flexibility and more efficient operation of the electricity system.

From our perspective, the development of this segment is gradually bringing the North Macedonian market closer to European market mechanisms. This is also an important prerequisite for its further integration with regional and European markets.

We expect the number of participants and the volume of trading to increase in the coming period, with the intraday market gradually becoming an even more important tool for managing positions and risks in the electricity market..

Q: How close is North Macedonia currently to linking its electricity market with the markets of neighbouring countries and the EU market?

A: The North Macedonian electricity market, like all other electricity markets in the region and Europe, is closely interconnected with the markets of neighbouring countries and the wider region. The impact of regional flows is inevitably visible in the day-to-day operation of power exchanges and represents the clearest evidence that an electricity exchange cannot function in isolation. Of course, when we talk about linking electricity markets, we primarily mean so-called market coupling, which is a lengthy process closely connected with regulatory and technical-economic adjustments.

In the previous period, we made significant progress in the process of integrating the North Macedonian electricity market with the single European market. National market infrastructure is continuously being upgraded – from the establishment of the day-ahead market, which began operating on 10 May 2023, through the introduction of the intraday market, to aligning regulations and market rules with European standards.

In July this year, North Macedonia completed the transposition process and entered the verification phase for compliance with the European Electricity Integration Package, conducted by the Energy Community Secretariat and the European Commission. This is an important stage and one of the prerequisites for moving on to concrete activities aimed at market coupling. This is not merely a technical project, but a process that requires the fulfilment of a range of regulatory, operational and technical conditions.

In this regard, MEMO fully meets the necessary prerequisites and is ready for integration into regional and European market mechanisms.

Successfully completing the verification process will provide the basis for moving on to the next steps in the market-coupling process. This would mean significantly greater integration of the North Macedonian market with neighbouring and European markets, more efficient use of cross-border capacities, greater liquidity and, ultimately, better conditions for market participants, bringing socioeconomic benefits to our economies.

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Q: You announced that MEMO is considering introducing negative prices in its market. How could their introduction affect renewable energy producers and investments in new solar and wind power plants?

A: Introducing the possibility of negative prices is a natural step in the development of an organized market and in bringing the Macedonian market closer to European market mechanisms. A negative price is, above all, a signal that, during a certain period, electricity supply significantly exceeds demand. This should not be viewed as a problem in itself, but rather as a market signal that helps participants better optimize their generation and consumption decisions.

For renewable energy producers, such prices can provide an additional incentive for more precise planning and active generation management. Particularly for solar power plants, where generation peaks occur during the hours with the most solar energy, periods of increased supply and lower prices may arise. Under such conditions, producers will have greater motivation to invest in flexibility, energy storage and better management of their market positions.

From the perspective of new investments, negative prices do not mean renewable energy development should slow down. On the contrary, they send a signal that the future development of generation capacity should go hand in hand with the development of system flexibility – through battery energy storage systems, demand-side management and better balancing of generation.

Our goal at MEMO is to create a market that realistically reflects supply and demand conditions and provides participants with clear signals. In the long term, such signals are important for creating a more efficient and flexible power system that can accommodate an increasing share of renewable energy sources.

Negative prices have already been applied for an extended period in electricity markets in EU member countries, and more recently in our region as well. They most commonly occur during hours when generation, particularly from solar and wind power plants, is high while consumption is low.

This is, in fact, an important market signal. When the price falls below zero, the market signals that there is a surplus of electricity at that particular moment and that it is necessary either to reduce generation or increase consumption, i.e., to activate flexibility and storage.

From this perspective, I believe that negative prices are a useful instrument if they are part of a well-organized and competitive market. They should not be viewed as a threat to renewable energy sources, but rather as a signal that, as solar and wind capacities increase, we must simultaneously develop energy storage, flexible consumption, grid infrastructure, and better generation management.

European experience shows that negative prices are already becoming an increasingly common part of market dynamics. Therefore, the Macedonian market also needs a mechanism that realistically reflects supply and demand conditions.

The trend we should establish to ensure the stability of the power system is not only to produce more green energy, but also to create a system that can efficiently accommodate, store, and use it when needed.

Interview by Milena Maglovski

The interview was published in Energy portal Magazine SUSTAINABLE ARCHITECTURE