Government of Serbia adopts changes to renewables law

The Government of Serbia passed the amendments to the Law on the Use of Renewable Energy Sources. They will enable further development in the sector including holding auctions for new capacities from renewable sources, the Ministry of Mining and Energy said.

Minister Dubravka Đedović said a balance is being achieved with the amendments to the law between two equally important goals: greater integration of renewables into Serbia’s energy system and safe operation of the electric power system.

“The changes to the law will enable holding auctions in a way that will integrate investors faster into the market and enable them necessary predictability regarding costs and incentives, and with minimal expenses for citizens and the state, but also with stimulation for private investments in RES, with greater availability of production capacities for our citizens and companies from green, clean sources,” Đedović said.

Serbia is currently getting two thirds of its electricity from coal

The minister noted that Serbia is currently getting about two thirds of its electricity from coal. Increasing the production of energy from renewable sources is key for a successful energy transition and for lowering the energy sector’s negative impact on the environment, Đedović pointed out.

“Achieving that requires better defining the role and responsibility of all participants so that we have both higher green energy production and stability in the electric power system, and that’s what we want to achieve with the changes to this law,” Đedović stated.

Changing the law will contribute to solving an issue that is causing great concern for system operators, the statement adds. Namely, there is a high number of requests for connecting wind parks and solar power plants. The law will more adequately regulate the responsibilities of commercial projects toward the electricity system, the ministry said.

Installed power to be limited for prosumers

One of the changes in the proposed amendments to the Law on the Use of Renewable Energy Sources affects prosumers. Namely, the installed power for buyers-producers, as they are legally defined, is being limited in line with similar practice in the European Union and the Energy Community, according to the announcement.

The current model includes significant advantages and exceptions compared to the obligations of other market participants toward system operators, the Ministry of Mining and Energy said.

The capacity limits need to be set in a way to make them acceptable with regard to the safety of operation of the electricity system, while enabling greater participation of citizens and small firms in the energy transition, the statement reads. The bill is now heading to parliament for a vote.

Households that want to become prosumers in Serbia won’t be able to connect photovoltaic systems larger than 6.9 kW. The ceiling for firms will be 150 kW. So far the limit for their solar power plants for own consumption, with the ability to deliver the surplus to the grid and use it subsequently, was equal to the network connection capacity of the household or the company.

At the moment, the largest household photovoltaic system in the segment is just under 47 kW while the biggest corporate prosumer has a facility of almost 1 MW.