Energy Crisis

Serbia to spend EUR 1 billion on electricity, coal imports by end of year 

Serbia to spend EUR 1 billion on electricity, coal imports by end of year

Photo: iStock

Published

June 8, 2022

Country

Comments

comments icon

0

Share

Published:

June 8, 2022

Country:

Comments:

comments icon

0

Share

Serbia will spend EUR 1 billion on electricity and coal imports by the end of the year, and imports will continue until 2024, said Zorana Mihajlović, Serbian Deputy Prime Minister and Minister of Mining and Energy.

Zorana Mihajlović explained that it is an estimated amount for the purchase of electricity and coal by the end of the year, including about EUR 530 million for imports since December 12, when Serbia’s biggest thermal power plants broke down, until the end of April.

The costs of electricity imports are much higher due to the energy crisis. In previous years electricity was imported at EUR 30 to 50 per megawatt-hour (MWh), and now prices are three to four times higher.

Of note, on December 12, due to poor coal quality and insufficient quantities, production was sharply reduced in the two largest coal power plants operated by Elektroprivreda Srbije (EPS) – TENT A and TENT B, prompting the need for emergency imports to cover the shortfall for domestic consumption. At one point it reached 45%.

EPS is still importing electricity, which has not happened for years

Imports have not stopped since then. EPS is buying electricity abroad in the period of the year when usually doesn’t. Zorana Mihajlović said Serbia imports electricity every day in order to satisfy 10 to 17 percent of its consumption. It is a consequence of overhauls in EPS, but much more of the events in December, local media reported.

Serbia will probably have to spend EUR 1 billion by the end of the year on the import of electricity and coal just because someone in EPS did not do their job, Mihajlović said. She added the company would be able to provide enough electricity for domestic needs by the beginning of 2024 and return to the state from before December 12 of last year.

EUR 150 million must be invested in mines

She explained that EPS must invest at least EUR 150 million to make the Kolubara mining basin produce sufficient quantities of coal.

Due to bad planning at EPS there are no preconditions to produce enough coal, and it cannot be done soon, Mihajlović stressed.

Of note, the Government of Serbia has allowed EPS to import four million tons of coal by the end of 2023, and the first contracts were signed with the Montenegrin Pljevlja mine and Banovići mine from BiH.

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

GGF Kostadinov Western Balkans responded energy crisis innovation ambition

GGF’s Kostadinov: Western Balkans responded to energy crisis with innovation, ambition (video)

20 May 2025 - The past three to four years have been nothing short of transformational when it comes to the energy transition in the Western Balkans, said Borislav Kostadinov, Finance in Motion's Fund Director for GGF

Alteo's Chikán Aggregators AI solutions grid stability production optimization

Alteo’s Chikán: Aggregators have AI solutions for grid stability, production optimization (video)

19 May 2025 - Volatile prices, policy changes and flexibility needs are driving a momentum for developers and aggregators, Alteo's CEO Attila Chikán says

Akuo Energy signs PPA with EPS for Bela Anta 2 wind project in Serbia

Akuo Energy signs PPA with EPS for Bela Anta 2 wind project in Serbia

19 May 2025 - Akuo Energy signed a power purchase agreement (PPA) with Serbia's Elektroprivreda Srbije (EPS) for the Bela Anta 2 wind power project

power grid outage substation

Low consumption causes grid failure, power outage in North Macedonia

19 May 2025 - Bulgaria’s balancing facilities were crucial in stabilizing North Macedonia’s grid, Bulgarian energy minister says