Third Quarterly Narrative Report: July 1, 2015 – September 30, 2015

The project's overall objective is to introduce the principles of energy management to selected Macedonian industries based on the ISO 50001:2011 standard. The project's approach focuses on reducing energy consumption using a systematic and sustainable method founded on ISO 50001:2011 principles and methods. During the third quarter of 2015, the project implemented energy management systems at four pilot companies, including Kadino Industry, Mermeren Kombinat Prilep, Swisslion, and DI Fagus. These pilot companies were successfully commissioned, and the project completed a total of 17 pilot companies with installed energy management systems. The project continued to provide assistance to pilot companies for energy efficiency upgrades and worked with Kolid International and Nova Refrakters on energy improvements. The project also organized two events in the third quarter. The sixth USER training workshop was organized in cooperation with UNIDO, and the venue was confirmed with invitations sent to over 70 participants. Additionally, the project organized the second round table, scheduled for June 28th, 2015, which focused on improving competitiveness and fostering a culture of continuous improvement through enhanced energy management practices. The Macedonian energy sector is in a transitional phase from a centralized to a decentralized, regulated free market. The key challenge on the demand side is to improve energy efficiency, which has been hindered by below-market pricing for most users. On the supply side, the challenges include limited energy supply options due to the country's lack of oil, gas, or high-quality coal reserves, and aging generation facilities. Recent reforms are helping to address these challenges, and the country is committed to further reforms to bring about full liberalization of the energy market. Macedonian manufacturing companies are recognizing the importance of energy and sustainability issues for their competitiveness and survival. Using one-third of the country's total energy consumption, these companies face high price volatility and regional and EU competition for market share. To address these challenges, they need to better understand their energy consumption patterns and adopt organizational measures to manage energy use. The use of energy management systems in Macedonian industry is crucial due to increasing energy costs and the need to sustain a competitive edge in new markets. The Industrial Management Project aims to improve Macedonia's competitiveness and energy security while reducing greenhouse gas emissions. The project's implementation is managed by TimelPro Consulting, a Prime Contractor to the USAID, in collaboration with other organizations. The project's activities are guided by the Annual Work Plan of 2015, which outlines the key objectives, approach, and expected outcomes. The project's main activities include implementing energy management systems at pilot companies, providing assistance for energy efficiency upgrades, and organizing events and workshops to promote energy management practices. The project's progress is monitored and evaluated through regular reporting and performance monitoring and evaluation activities. The project's overall goal is to contribute to the improvement of Macedonia's competitiveness and energy security while reducing greenhouse gas emissions.