Quarterly Narrative Report – April 16, 2013 – July 15, 2013

The project's overarching goals are to introduce energy management principles to selected industries based on the ISO 50001 standard. The project's objective is to reduce energy consumption using a systematic and sustainable approach founded on ISO 50001 principles and methods. The project's main activities during the reporting period from April 16, 2013, to July 15, 2013, focused on the Demonstration Projects and Outreach components. The IMP team conducted a comprehensive and transparent process to select candidate companies for the implementation of pilot Energy Management System (EMS) under the IMP. A total of 14 candidate pilot companies were selected for EMS implementation. The IMP team, enhanced by external experts, conducted on-site walk-through audits at six candidate companies. The audits aimed to assess the infrastructure and requirements for EMS implementation. The team concluded that most candidate companies have outdated infrastructure and utilize old equipment, which increases the cost of EMS investment. Additionally, about 60% of the selected candidate companies lack a local area network, which is necessary for EMS operation. The IMP team also conducted a comprehensive and transparent process to select credible equipment vendors that offer integrated and proven solutions for Energy Management System in pilot companies. As a result, two equipment vendors, Schneider Electric and Loging, were selected, meeting the project's criteria for EMS implementation. The USAID team established a partnership with the UNIDO team, which is expected to start a similar industrial energy efficiency project in Macedonia. A joint workshop was held in mid-July 2013 to initiate the cooperation and discuss materials, logistics, and cost distribution between the two teams. The outreach component was enhanced by other marketing activities, including the broadcasted Nova Profit series on Industrial Management and the Mega interview with COP Dragan Blazev in the Economy and Business monthly magazine. The IMP team will continue conducting on-site walk-through audits, preparing EMS specifications, and detailing activities, including materials, logistics, and cost distribution with the UNIDO team. The Macedonian energy sector is in a transitional phase from a centrally managed structure to a decentralized, regulated free market. The country faces challenges in improving energy efficiency, as below-market pricing for all users except the largest has hindered energy usage. On the supply side, the country's limited energy supply options and aging facilities pose challenges. Recent reforms aim to address these issues and promote the full liberalization of the energy market. Industrial and manufacturing companies in Macedonia are rapidly increasing their energy consumption, which has led to a significant increase in greenhouse gas emissions. The country's energy sector is in a critical phase, and the Industrial Management Project aims to address these challenges by introducing energy management principles to selected industries. The project's objective is to reduce energy consumption using a systematic and sustainable approach founded on ISO 50001 principles and methods. The project's main activities during the reporting period focused on the Demonstration Projects and Outreach components. The IMP team conducted a comprehensive and transparent process to select candidate companies for the implementation of pilot Energy Management System (EMS) under the IMP. A total of 14 candidate pilot companies were selected for EMS implementation.