Serbia has emerged as a leader in energy market integration among Energy Community members, becoming the first non-EU country to meet the technical and legal requirements for linking its electricity market with the European Union.
Serbian Minister of Energy and Mining, Dubravka Djedovic, stated that Serbia has completed the full harmonization of its electricity legislation with EU rules, a milestone no other Western Balkan economy has yet achieved. She noted that the verification phase, conducted by EU institutions, is already in progress and is expected to enable practical market coupling once finalized. Upon formal approval, Serbia plans to connect first with Hungary’s electricity market, leveraging existing regional trading platforms that also involve Slovenia. Minister Djedovic highlighted that market integration will provide faster cross-border trading, improved price formation, and enhanced system resilience during regional supply disruptions.
Serbia has also continued to align its oil and gas framework with EU standards. Recent legislation on hydrocarbons and mandatory reserves has strengthened regulatory convergence, while reserve levels have been significantly increased. Over the past two years, mandatory oil and petroleum product reserves have risen to the equivalent of 44 days of last year’s imports, with eurodiesel stocks up by more than 70%. These reserves have helped prevent shortages amid challenges related to sanctions affecting the domestic energy sector.
Minister Djedovic added that Serbia’s advanced position in market integration opens the possibility of a bilateral memorandum with the European Commission. Such an agreement could define timelines and conditions for partial or temporary exemptions from CBAM, linked to Serbia’s progress in introducing carbon pricing mechanisms.
