What does Serbia’s new Energy Sector Development Strategy bring

The National Assembly in Belgrade passed the Energy Sector Development Strategy of Serbia up to 2040 with Projections up to 2050. One of the envisaged measures is ending the use of coal and oil derivatives in the production of heat.

Alongside the changes to the Law on Energy, the National Assembly adopted the Energy Sector Development Strategy of the Republic of Serbia up to 2040 with Projections up to 2050. The strategic goal is to secure the supply to people and companies including a progressive reduction in greenhouse gas emissions and other negative impacts on the environment and human health, said Minister of Mining and Energy Dubravka Đedović Handanović.

Public consultations on the draft strategy lasted until August 15.

The document envisages investments in oil and gas supply diversification and the introduction of hydrogen and green hydrogen in the energy system.

Energy Sector Development Strategy of Serbia envisages construction of two pumped storage hydropower plants

Serbia intends to increase its electricity production. The share of renewable sources in the sector would grow while the percentage of coal would decrease. Pumped storage hydropower plants Bistrica and Đerdap 3 need to be built and more solar and wind power plants, while existing hydroelectric facilities would be rehabilitated.

Strategic goals include an increase in power production with the share of renewables growing and the percentage of coal decreasing

The plan is to end the use of coal and oil derivatives in the production of heat.

Energy transmission and distribution networks require a makeover and modernization as well as a reduction in losses, the document reads. The government would arrange financial and other incentives for capacities running on renewable sources.

Government needs to streamline procedure for prosumers

The strategy encompasses support for the use of electric vehicles and the adaptation of the power grid to electromobility needs. One of the items important for the energy transition will be streamlining the procedures for prosumers, who in Serbia are formally called buyers-producers.

Financial incentives are foreseen for improving energy efficiency in all segments of consumption.

As for fossil fuels, an expansion of the Banatski Dvor gas storage facility and the construction of new ones are necessary, together with the establishment of interconnections with Romania, North Macedonia and other neighbors for the transmission of the fuel, the ministry said. In the oil sector, the focus is on increasing the mandatory level of reserves including derivatives and on a project for a pipeline that would connect the country with Hungary.