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Serbian government proposes amendments to RES legislation

The Serbian government has approved its proposed draft Act on Amendments to the Law on the Use of Renewable Energy Sources (RES), the Ministry of Mining and Energy announced on Thursday (16 March).

If adopted, the Act will enable further development of the country’s RES sector, including the implementation of auctions for new capacities from renewable sources.

Amendments to the existing legislative framework will also help to resolve the issue related to overloads in the requests for connecting wind and solar farms to the power system, which causes concern among system operators, the Ministry said. This would include ‘adequate regulation of responsibility’ towards the power system of commercial projects.

“Amendments to the law achieve a balance between two equally important goals – greater integration of RES into our energy system and ensuring the safe operation of the power system in the Republic of Serbia. Amendments to the law will enable the implementation of auctions in a way that will integrate investors more quickly into the market and provide them with much-needed predictability in terms of costs and incentives, with minimal costs for citizens and the state, but also encourage private investments in RES, with greater availability of production capacities for our citizens and the economy from green, clean sources,” said Dubravka Đedović, Minister of Mining and Energy.

One of the changes in the proposed amendments to the Law on the Use of RES refers to the limitation of the installed power of buyers-producers, in accordance with regulations in the EU and the Energy Community.

The proposed solution aims to make the existing buyer-producer model function within clearly defined capacity limits that are acceptable from the aspect of the power system operation’s safety. The new model would also aim for greater participation of citizens and small businesses in the energy transition, encouraging a better balance of production and consumer-producer consumption during the year.

Serbia currently gets around two-thirds of its electricity from coal. In 2021, Serbia had a total RES capacity of 3524 megawatts (MW) with large hydropower being the largest source (2338MW).

The implementation of legislation enabling auctions for renewable energy projects was included in the recommendations of the Energy Community’s Annual Implementation Report, published in November 2022.

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