RES: Own production as the main competitive advantage and driver of change

In conditions of unstable electricity prices and increased uncertainty in European energy markets, secure supply and predictable costs have become one of the key prerequisites for the competitiveness of companies.

In such an environment, RES (Renewable Energy Supply) has positioned itself in a relatively short period as one of the most significant electricity suppliers on the free market in Macedonia, building its competitive advantage on its own production from renewable sources and long-term partnerships with domestic and regional producers.

After the strong results achieved in 2023, the company maintained the positive trend in 2024.

According to official financial data, RES generated revenues of 6,159,134,435 denars , while profit before tax reached 84,511,793 denars .

Compared to the previous year, revenues increased by 3.58 percent , which was enough for the company to rise to 44th place among the largest companies in Macedonia according to the ranking of the 200 LARGEST AND MOST SUCCESSFUL .

Although the profit margin in the electricity supply sector is traditionally relatively low due to the high costs of energy procurement, financial results show stable performance and continuity in growth.

This is especially significant considering that the company operates in one of the most dynamic and unpredictable sectors, where prices change daily under the influence of stock market movements, weather conditions, and geopolitical developments.

From import dependence to greater energy independence

The Macedonian power system has been heavily dependent on electricity imports for years, especially in periods when domestic production could not meet the needs of the economy and households.

In such conditions, the price of electricity largely depended on the conditions on regional stock exchanges, the movement of prices of natural gas and other energy sources, as well as on global economic and political developments.

The energy crisis that has gripped Europe in recent years has further highlighted the need for greater diversification of supply sources and greater domestic production. During that period, many companies were exposed to significant price fluctuations, which directly affected their production and operating costs.

In such circumstances, the model being developed by RES represents a different approach to the Macedonian market. Instead of relying largely on purchasing electricity from regional exchanges, the company builds its strategy on production from renewable sources, long-term contracts, and its own production capacities.

Such an approach allows for greater stability in providing the necessary amounts of electricity, but also greater predictability of costs, which is especially important for companies that operate with high electricity consumption.

At the same time, increasing production from renewable sources also contributes to the gradual reduction of import dependence, which is one of the strategic goals of the Macedonian energy sector.

Own production as a key competitive advantage

The electricity supplier RES bases its market position on access to its own production capacities from renewable energy sources, as well as on long-term cooperation with domestic and regional producers.

This is one of the biggest differences compared to some of the other suppliers on the free market. While many companies provide electricity almost entirely through procurement on regional exchanges, RES has its own production base in North Macedonia and Bulgaria.

Access to own generation allows for greater control over the provision of electricity and reduces exposure to price fluctuations on the stock exchanges. In volatile market conditions, this is an important risk management mechanism and creates the opportunity for greater predictability of prices offered to customers.

Thanks to this model, RES is the only supplier on the Macedonian market that offers the possibility of supplying electricity at fixed prices. For companies operating with predefined budgets and long-term contracts, such predictability is a significant advantage, as it reduces the risk of unexpected increases in electricity costs.

Regional production network and diversified energy sources

The basis of this model are the production capacities and partnerships that the company has built in Macedonia and the region. One of the founders of RES is the Macedonian company Central Invest, together with its sister company Fero Invest, which have renewable energy power plants with a total installed capacity of 35 MW.

The second founder, the Bulgarian company KER TOKI POWER, has its own production capacities of 90 MW in Bulgaria, and through its balance group cooperates with other producers with a total installed capacity exceeding 400 MW.

In addition to the capacities of its founders, RES has concluded power purchase agreements with around 80 private producers in North Macedonia, who operate hydroelectric power plants, photovoltaic power plants and biogas plants. Their total installed capacity is approximately 55 MW, which further diversifies the production base and increases the security of supply.

This combination of own production, long-term contracts and regional cooperation allows for greater independence from daily stock market price fluctuations. At the same time, it creates conditions for better planning of electricity procurement and more efficient risk management, which is a significant advantage in a sector where prices can change significantly in a very short period of time.

Technology and balancing as part of competitiveness

In addition to production capacities, an important segment of RES's operations is the management of the electricity portfolio. The company has expert staff and specialized software solutions for balancing electricity production and consumption.

In modern power systems, balancing is crucial, as production and consumption must be constantly aligned. By using modern digital tools, the company can timely monitor market changes, optimize electricity quantities, and reduce costs arising from market deviations.

Such an approach allows for greater efficiency in operations, but also greater security for clients, especially in periods when the market is exposed to high volatility.

Flexible supply models

Different categories of companies have different needs when it comes to electricity supply. Therefore, RES offers multiple supply models, which can be adapted to the consumption structure and financial needs of customers.

In addition to supply at fixed prices, the company also offers models linked to movements on regional stock exchanges, as well as combined solutions that provide a balance between price certainty and the ability to take advantage of favorable market conditions.

For businesses, this flexibility represents an opportunity to better plan electricity costs, which is especially important for manufacturing companies and businesses where electricity represents a significant portion of total operating expenses.

Competition as a driver of change

The development of the liberalized electricity market in Macedonia has enabled the emergence of new suppliers and greater choice for companies purchasing electricity on the free market. In such an environment, competition has become one of the main factors for improving services, developing new supply models, and increasing price competitiveness.

RES is among the companies that have contributed to this process, offering a model that relies heavily on renewable generation and long-term planning, rather than exclusively on short-term stock market purchases. Such an approach has allowed for the expansion of supply on the free market and created additional opportunities for companies seeking greater price predictability.

The experiences that the company shares through its communication channels show that some customers recognize fixed contracts as a way to better plan costs and reduce the impact of price fluctuations on the electricity market.

Renewable sources as a long-term development strategy

The energy transition is one of the most important processes currently taking place in Europe, and renewable energy sources are becoming an increasingly important part of national energy systems. In this context, companies that have their own production from solar, hydro or other renewable sources are better positioned to respond to future market challenges.

With the combination of its own production facilities, partner network, modern balancing systems and various supply models, RES has built a recognizable business model that reduces dependence on imports and creates greater security of supply.

Continuous revenue growth, positioning among the largest companies in the country, and focus on renewable sources show that the company is successfully using market liberalization to build a competitive position.

In conditions when stability of supply and control of energy costs are becoming increasingly important for the economy, such an approach represents a significant competitive advantage and contributes to the further development of the Macedonian energy market.