Serbia is energetically prepared for winter, but developments in the natural gas and electricity markets, which are a consequence of the situation in Ukraine, raise concerns about gas prices and availability, said today Minister of Mining and Energy, Dubravka Djedović Handanović, at the Central and South-Eastern Europe Energy Connectivity (CESEC) High-Level Group Ministerial Meeting.
Djedović Handanović in Budapest: Serbia is Energetically Prepared for Winter, but Market Developments are a Cause for Concern
29 October 2024
"In recent weeks, the price of gas on the TTF increased by about 15 percent and reached EUR 42 per megawatt-hour, while availability is also a critical issue for the entire region, especially given its impact on rising electricity prices. This summer, we witnessed drastic increases in electricity prices alongside a shortage of available megawatts due to the redirection of resources to supply Ukraine. Given this, and the forecast that the upcoming winter will not be as mild as the previous one, I believe we need a thorough analysis of all possible scenarios and a set of measures to protect ourselves against fluctuations in the prices of energy sources and energy, and their availability. We must consider both the prices that citizens pay and the competitiveness of our economy. The Central and Southeastern European region needs a plan and measures today, not in three months," emphasized Djedović Handanović.
She noted that the construction of the gas interconnection with Bulgaria has created the preconditions for the diversification of supply sources, not only for Serbia but also for the region and the EU.
"We are continuing the development of regional projects, and I believe that in the next few years we will complete gas interconnections with Romania and North Macedonia, with whom we have signed Memorandums of Understanding." Two major challenges remain: first of all securing financing, because gas needs to be recognized as a transitional energy source, and ensuring the availability of adequate gas quality in sufficient quantities," said the Minister.
She announced that by the end of the year, she expects the adoption of amendments to the Law on Energy, which are, among other things, important for the electricity market coupling.
"Serbia is working together with its neighbouring countries to strengthen and increase electricity transmission capacities. The ‘blackout’ that affected the region this summer, though not Serbia, clearly highlighted the constraints of transmission capacities and the need for better regional connectivity. Additionally, together with our neighbours, we are working on the development of projects in the hydro sector, specifically the HPP Buk Bijela with Bosnia and Herzegovina, and the HPP Djerdap 3 with Romania. I would like to emphasize that the construction of Djerdap 3 would have much broader regional significance for the integration of RES energy, as it represents the largest potential capacity for balancing variable green megawatts," said Djedović Handanović.
During the CESEC Ministerial Meeting in Budapest, representatives of the European Commission expressed satisfaction with the fact that Serbia adopted the National Energy and Climate Plan, and also praised the development of the electricity market and the regional power exchange, as well as Serbia's efforts to advance the development of RES projects and new storage facilities.
Speaking about investments in new production capacities, Djedović Handanović pointed out that Serbia recently signed an agreement for the construction of solar power plants with a capacity of 1 GW, along with 200 MW of storage, which will significantly transform the Serbian energy landscape in the coming years. Additionally, in 2026, we will have new RES power plants coming online as a result of the first auctions".
On the sidelines of the meeting, Minister Djedović Handanović held discussions with the Hungarian Minister of Energy Csaba Lantos and the Deputy Director of the Directorate-General for Energy of the European Commission.
