Conference Paper

The purpose of this article is to explore strategies for business model innovation in the energy sector in North Macedonia. The two main theoretical frameworks – the resource-based view and the industrial model will be used to explore the potential for strategic shift in the companies operating in the renewable energy market. It includes a conceptual overview on the external factors, Porter’s five forces, and internal factors such as the resources and capabilities. Key findings of the paper show that renewable energy generation and selling is driven by the dynamism of technological advance and climate change related policy solutions, but is also highly affected by climate change and political developments in the country and the region. The practical implications of this article show that maintaining market competitiveness by the renewable energy generation companies requires migration to more efficient technologies for electricity generation. The companies need to adapt to the policy shift aimed towards reliance on domestic sources for electricity generation, in response to the political turmoil in Europe affecting regional and national energy markets.