Introduction
North Macedonia (RNM) is navigating a crucial transition towards a sustainable energy future, necessitated by commitments such as the European Green Deal and the Green Agenda for the Western Balkans. This study investigates the socio-economic impacts of closing the coal-fired thermal power plant (TPP) Oslomej, emphasizing a just transition approach that ensures social equity and economic stability amid environmental changes.
Objectives
The study aims to assess the long-term socio-economic consequences of the TPP Oslomej’s decommissioning within the SWPR, evaluating existing energy and climate policies while advocating for tailored just transition measures for affected workers.
Methodology
Using a mixed-method approach, the research combines quantitative analyses (such as input-output and cost-benefit analyses) with qualitative assessments through stakeholder interviews. This dual approach offers a comprehensive understanding of the socio-economic dynamics involved in the transition.
Key Findings
• Lack of Consensus: The study highlights a significant divide among societal segments on the need for a place-based just transition plan for phasing out coal, underscoring the urgency for collective consensus.
• Regional Economic Impact: Transitioning the SWPR towards a greener economy via TPP Oslomej’s closure will lead to substantial job losses—directly affecting over 965 employees and indirectly impacting more than 1,200 jobs in related sectors.
• Importance of Comprehensive Evaluation: Financially, immediate plant closure appears favorable. However, a thorough assessment that includes socio-economic implications reveals that well-designed just transition measures yield greater long-term benefits, emphasizing the need for investment in sustainable options.
• Decarbonization Challenges: The existing governance framework for just transition is perceived as top-down, lacking inclusivity. Effective progress demands active engagement of local stakeholders and tailored strategies to alleviate socio-economic issues faced by the SWPR.
Recommendations
Develop Tailored Just Transition Plans: RNM should prioritize the creation of locally tailored strategies that address specific socio-economic needs arising from TPP Oslomej’s closure to facilitate community acceptance of coal phase-out policies.
Enhance Stakeholder Involvement: Establish participatory governance structures that allow for broader engagement of local authorities and civil society organizations in decision-making processes to build legitimacy and commitment to the transition.
Investment in Sustainable Alternatives: Invest in retraining and reskilling programs to prepare affected workers for green jobs, ensuring that future employment opportunities align with the region’s economic potential.
Conclusion
This study illustrates the complexities and urgency of North Macedonia’s energy transition, particularly in the context of the SWPR’s socio-economic landscape. Balancing environmental objectives with social equity is essential for ensuring a sustainable and inclusive future, calling for immediate action and collaborative efforts among stakeholders.
References:
Full research report with references can be found at the following link: Assessing the state and impact towards Just Transition process in the energy sector in North Macedonia – with territorial focus on the Southwest planning region – https://zenodo.org/records/12755574
Researchers:
Center for Economic Analyses – CEA
www.cea.org.mk

Vesna Garvanlieva Andonova, Researcher – CEA
Marjan Nikolov, Researcher – CEA
Elena Gotovska, Researcher – CEA

The research case is conducted within the frames of Horizon Europe project “GreenFORCE: Foster Research Excellence for Green Transition in the Western Balkans, implemented by the Institute Co-PLAN, in partnership with Polis University, Albania; University of Belgrade – Faculty of Geography, Serbia; Polytechnic University of Turin, Italy; Center for Economic Analyses (CEA), North Macedonia; and Nordregio Institute, Sweden.
GreenFORCE aims to advance scientific research and innovation in the Western Balkans, in relation to the green transition, by strengthening the research profile, research capacities, as well as the capacities of partner organizations, to contribute to the convergence of the countries of the Western Balkans (WB) with the EU; the broader context of public policies in the WB region will also be explored.

Image: TPP Oslomej. Available at: https://shorturl.at/xOrpb

Image: TPP Oslomej. Attribution: By Kiril Simeonovski – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=94885757