Djedović Handanović: Serbia Leads the Region in Reforms, We Continue to Invest in Production and Transmission Capacities

"At the Energy Community Ministerial Council meeting, Serbia confirmed its leadership position in the electricity and renewable energy sectors. In terms of readiness for market coupling, we are ahead of all countries in the region. We have successfully transposed the package of European Union’s reform regulations into our legislation, thereby creating the conditions for our electricity market to be coupled with the EU electricity market in the near future," said Djedović Handanović.

She recalled that, this week, the first regional power exchange in this part of Europe, involving Serbia, Slovenia and Hungary, began operating. “Our three countries have joined their power exchanges in order to be more efficient in electricity trading, which also increases the availability of electricity for our countries, citizens and economies, and creates conditions for more favorable prices,” the Minister added.

The Energy Community Ministerial Council also discussed the preparedness of Contracting Parties for winter and the conditions on the electricity market due to the uncertainty caused by the conflict in Ukraine.

“The existing geopolitical uncertainties could create pressures on gas and electricity prices, and we are closely monitoring developments on the electricity market in order to be able to protect ourselves from potential disruptions in a timely manner. Tomorrow, we will take over the new TPP unit in Kostolac, which will be EPS's first new production capacity in almost 35 years and will provide us with additional security," said the Minister.

Djedović Handanović emphasized that Serbia will continue to develop its production capacities and transmission network, which are important for increasing energy security.

"We are also continuing to invest in RES, where Serbia is also a leading country in the region, especially in terms of progress in guarantees of origin for RES. Additionally, we are preparing one of the largest renewable energy projects in Europe, a 1 gigawatt solar power plant with 200 megawatts of battery storage. We have proven that we work hard and are ready to strengthen our transmission capacities, as confirmed this summer when a grid failure occurred in other countries in the region," Djedović Handanović stated.

The Energy Community has also recognized certain projects of importance for the entire region, among which, in the case of Serbia, the Trans-Balkan Corridor project stands out. "We are also preparing for the implementation of the Pannonian Corridor and Central Balkan Corridor construction projects. These projects will bring not only long-term energy security but also higher exchange of electricity with our neighbors - Hungary, Romania, Bulgaria, Montenegro and Bosnia and Herzegovina," the Minister stated.

Regarding the carbon tax, Serbia will continue to conduct analyses before the start of the implementation of the CBAM (Carbon Cross-Border Adjustment Mechanism), according to her.

"We must be ready and find the best solution that will have the lowest costs for our industry, so it can continue to develop and remain competitive in the EU market. We will continue discussions on this topic because, as a region, we must prepare well for this change. At the same time, it is important to gradually transition to renewable energy sources with lower emissions of harmful gases. In this regard, we will make progress, including by building the first wind farm in Kostolac and completing other auctions that are currently underway for RES. Such investments and projects will enable our economy to obtain energy from clean sources, which is crucial for us to bear the burden of the carbon tax more easily in the future," said the Minister.