Energy Crisis

Leaked – Serbia secretly hired Rystad Energy from Norway as consultant

Leaked Serbia secretly hired Rystad Energy Norway consultant

Photo: Imeao / https://creativecommons.org/publicdomain/zero/1.0/legalcode

Published

October 12, 2022

Country

Comments

0

Share

Published:

October 12, 2022

Country:

Comments:

0

Share

The Government of Serbia signed a secret contract with Norway-based Rystad Energy in early September, according to a news report. Without a competitive procedure, the company got the deal for consulting services with a task to help the country overcome the challenges in the energy sector.

Citing the energy crisis, which escalated in December with a series of simultaneous breakdowns in Serbia’s coal-fired power plants, the government hired a consultant, Nova.rs reported. The troubles in the electricity system later worsened with outages and fires, followed by Russia’s attack on Ukraine in February and a severe drought. According to the article, Rystad Energy was hired for activities in five phases.

The contract signed by Minister of Finance Siniša Mali reveals the first four segments would cost a nominal USD 1.55 million in total, the media outlet added. There was no public procurement for the Norwegian company’s services, which are aimed at helping Serbia to overcome the challenges in the energy sector and come up with a long-term strategy.

Strictly confidential deal to protect national security

In the document, the government reportedly said it opted for a strictly confidential deal because it would otherwise have to disclose information that could hurt national security. The cabinet is said to have secretly decided on September 1 to show the agreement to the Ministry of Mining and Energy for the sole purpose of briefing it. It would imply that Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović was sidelined.

Serbia agreed to pay a fixed fee of USD 1.55 million for services provided until the end of October

President Aleksandar Vučić said twice in the past week that “Norwegians” are cooperating with Serbia in the energy sector, without identifying the entity.

Deal includes option for long-term cooperation

The agreement is for an analysis of the state of the energy sector and for identifying “challenges and possibilities for Serbia in the energy sphere in the next three years.” The third phase, which would last four years, is for “the transition of the energy sector and enabling the conditions for growth.” The fourth one is about the perspectives of Serbia’s energy sector until 2050. The final part would be to continue the cooperation if the Government of Serbia agrees.

The fixed fee, excluding expenses, is for work until the end of October, while additional services would be paid separately, Rystad Energy said, according to the report.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

EU Energy Community support Serbia energy transition Várhelyi

EU, Energy Community extend support to Serbia in its energy transition

02 December 2022 - Minister of Mining and Energy Dubravka Đedović met with top officials from the European Union and Energy Community Secretariat

EU energy package talks paralyzed by gas price cap rift

EU energy package talks paralyzed by gas price cap rift

25 November 2022 - EU energy ministers agreed on most parts of the gas market reform, but the price cap issue has prevented the formal adoption of the package

windfall profit tax slovenia croatia energy crisis

Croatia, Slovenia to introduce windfall tax

23 November 2022 - Countries around Europe have already introduced a windfall tax to finance generous subsidies paid to the population and businesses

djedovic Electricity, natural gas prices to be increased in Serbia

Serbia to increase prices of electricity, natural gas

22 November 2022 - Minister Dubravka Đedović earlier indicated that the prices of electricity and gas would be raised, arguing they are unsustainable