State-owned power utilities EPS, EMS ask for modification of law on renewables

State-owned power utilities Elektroprivreda Srbije and Elektromreža Srbije have asked the Ministry of Mining and Energy of Serbia to change the law on the use of renewable energy sources and to halt the adoption of bylaws that enable subsidies for the production of green energy.

Elektroprivreda Srbije (EPS) and Elektromreža Srbije (EMS) claim that the integration of a large number of renewable power plants in Serbia’s power grid would jeopardize its stability and lead to high costs for them, the citizens and other companies. The Ministry of Mining and Energy responded that such a stance would lead to giving up on renewables, widely accepted in entire Europe and the developed world, but also giving up clean air and a healthy environment.

Connecting a large number of renewable power plants would lead to blackouts

In a letter sent on December 23, EPS and EMS, backed by the regulatory Energy Agency of the Republic of Serbia (AERS), stressed the large number of requests submitted for connecting planned wind farms and solar power plants by 2027 exceeds the potential of the transmission and production system to ensure stable supply to consumers. Further, it could lead to blackouts, the companies added.

If wind power plants of up to 3,500 MW are connected to the grid, the required capacity for balancing is 700-1,000 MW, and for power plants of up to 8,800 MW it would land to as high as 2,000 MW, according to a study on the integration of a high share of renewables, which is not complete, the companies said.

Based on the various scenarios for the integration of renewables, a balancing capacity of 500-800 MW would be needed, compared to the current 380 MW.

The cost of balancing wind farms with an installed capacity of 8.100 MW would be EUR 150-340 million

The annual balancing cost for wind farms with an installed capacity of 8,100 MW would be EUR 150-340 million, against EUR 48 million now. The cost will be paid by the consumers, the two companies claim.

As a solution, EPS and EMS insist on articles 10 and 11 of the law on the use of renewable energy sources to be modified. They propose the balancing responsibility to be transferred from EPS to the owners of wind farms and for the rule on the priority access for the renewable power plants to the transmission system to be altered.

Ministry: EPS and EMS refuse to implement energy transition

The Ministry of Mining and Energy told Balkan Green Energy News that the requests made by EPS and EMS can hardly be interpreted in any other way in Europe and the developed world than as a push to give up green energy.

It means abandoning the efforts to cut sulfur dioxide and carbon dioxide emissions, giving up on clean air, a healthy environment and the efforts to improve the citizens’ health, and on being part of the group of modern states, said the ministry led by Zorana Mihajlović.

EPS and EMS participated in the preparation of the law on the use of renewables, and now they oppose its implementation

According to the ministry, Serbia finds itself in an absurd situation that the main state-owned companies that should lead Serbia’s energy transition are actually refusing to do so.

The law was adopted in a transparent procedure with a wide public debate, but the state companies that worked together with the ministry on its preparation are opposing its implementation, the statement adds.

It would be useful to talk again and see who is for and who is against green energy

The ministry has asked all shareholders in the country to restart the discussion on renewables in order to see who is for, who is against, as well as who is only declaratively saying yes, but doing everything against the idea.