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Proposed Energy Law changes in Serbia empower businesses to decarbonize and engage in electricity markets

The proposed changes to Serbia’s Law on Energy aim to equip businesses with tools like active buyer status and power purchase agreements, facilitating their decarbonization efforts in line with the EU’s Carbon Border Adjustment Mechanism. Representatives from the Ministry of Mining and Energy, Elektroprivreda Srbije (EPS), Elektrodistribucija Srbije (EDS), Elektromreža Srbije (EMS) and KPMG Serbia discussed these updates at the “Businesses on the Road to Green Transition” conference hosted by the American Chamber of Commerce in Serbia (AmCham).

Rade Mrdak, a renewables advisor from the ministry, explained that the active buyer status targets non-household end consumers, primarily businesses with self-consumption power plants exceeding 150 kW. This model allows them to generate electricity for their use and sell surplus to the grid through contracts, not net metering. Unlike prosumers, active buyers can also participate in auxiliary services and flexibility markets. They must meet additional obligations, such as balance responsibility for any imbalances they create and providing extra storage capacity if their facility exceeds 5 MW.

Nenad Šijaković, advisor to EMS’s general manager, cautioned that firms focusing solely on self-consumption could miss out on market rights while gaining obligations. Mrdak indicated that enabling self-consumption would be prioritized, while participation in auxiliary services would follow after necessary bylaws are established. The flexibility market will require significant advancements in smart meters and grids before becoming operational.

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