Romania: Natural gas prices...

On 10 February, natural gas prices on Romania's day-ahead market, operated by the...

Romania: Tuzla-Podisor gas pipeline...

The inauguration of the Tuzla-Podisor gas pipeline marks a significant milestone, with nearly...

Romania: Retele Electrice invests...

In 2024, Retele Electrice Romania, part of the PPC group, invested 240 million...

Montenegro: Household electricity bills...

In January 2025, the average electricity bill for households in Montenegro amounted to...
Supported byClarion Energy banner
HomeUncategorizedSerbia: Could EPS...

Serbia: Could EPS expand in the region?

Serbia’s President, Aleksandar Vučić, made it clear that the sale of EPS (Electric Power Industry of Serbia) is not on the agenda. Instead, he announced plans for Serbia to acquire other power companies in the region, signaling a shift towards regional energy consolidation. However, skepticism looms within the professional sphere regarding the feasibility of such an endeavor, particularly considering EPS’s financial challenges, which are estimated to have cost the country over one billion euros.

Vučić reiterated this stance during a pre-election meeting of the coalition surrounding the Serbian Progressive Party in Lazarevac, dismissing speculations about EPS’s privatization. His remarks indirectly suggest that Serbia aims to leverage its energy prowess to extend influence across the region.

However, energy experts like Velimir Gavrilović express doubts about Serbia’s ability to ensure EPS’s stability, let alone expand its capacities by integrating neighboring countries’ energy systems. Gavrilović argues that such expansion is only viable if EPS transitions from losses to capital accumulation.

Given EPS’s recent struggles, which included personnel issues and financial losses amid rising market prices and electricity imports, doubts persist about its financial capacity for expansion. Gavrilović emphasizes the need for substantial funding, possibly through state-backed borrowing, for planned projects like the construction of one gigawatt of solar power plants.

He suggests that expansion efforts should primarily target Montenegro and Republika Srpska, considering their existing connections with Serbia. However, Miodrag Kapor views this announcement as politically motivated, potentially serving geopolitical interests rather than economic rationale.

Nenad Jovanović echoes the sentiment, asserting that EPS lacks the financial means for expansion. While theoretically possible, practical obstacles hinder such ambitions. Željko Marković concurs, suggesting that due to financial constraints, any expansion would likely involve acquiring parts of smaller regional power companies.

Recent challenges, including a major incident at the end of 2021 that led to widespread power outages and infrastructure damage, highlight EPS’s vulnerabilities. Despite criminal charges against EPS leadership, accountability remains elusive.

In summary, while the idea of Serbia acquiring regional power companies is politically appealing, financial constraints and EPS’s operational challenges cast doubts on its feasibility. Any expansion efforts would require substantial funding and address internal issues within EPS to ensure stability and success.

Supported byOwner's Engineer banner

Recent News

Supported byspot_img
Supported byspot_img

Latest News

Supported byspot_img
Supported bySEE Energy News

Related News

Romania: Retele Electrice invests 240 million euros in network modernization in 2024

In 2024, Retele Electrice Romania, part of the PPC group, invested 240 million euros to modernize and strengthen its electricity distribution network, with 190 million euros from its own funds. The projects focused on the Muntenia Sud, Banat, and...

Montenegro: Household electricity bills rise slightly in January

In January 2025, the average electricity bill for households in Montenegro amounted to 46.16 euros, marking a 0.6% increase compared to December 2024 (45.86 euros) and a 2.9% rise from January 2024 (44.84 euros). The lowest average monthly bill...

Hungary: Electricity prices and trading volumes see decreases in January 2025

In January 2025, the average price of electricity on the Hungarian energy exchange HUPX's day-ahead market (DAM) was 140.19 euros/MWh, representing a 3% decrease compared to the previous month when the average baseload price was 143.86 euros/MWh. The average...
Supported bySEE Mining News
error: Content is protected !!