Analysis of the Energy Sector in Macedonia

Compared to other types of infrastructure (road, rail infrastructure), the energy sector is quite favorable. However, analysis shows that there is scope for improvement through increased investment in power generation through renewable sources and improving energy efficiency. Electricity is an important production input, whereby the price of electricity has significant impact on the overall level of prices in the economy. In this context, increasing production efficiency and productivity of electricity, reducing power consumption to GDP and increase efficiency in the transmission and distribution of electricity will make the economy more competitive. The purpose of this paper an empirical analysis of the energy sector of the Republic of Macedonia in terms of the countries in the region in order to interpret the causal link between the quality of energy infrastructure, competitiveness and the country's GDP per capita. Parallel to this, the empirical analysis will detect potential deficiencies and bottlenecks which in the future should be a priority for the country and key entity in this sector, of course taking into account the role of the state. The hypothesis above are interpreted to be analyzed using the database for approximative variables using multiple techniques and methods