Investors venturing into renewable energy in Serbia now face potential setbacks in connecting to the country’s transmission system if they lack adequate storage capacity for the generated electricity. This follows recent regulations adopted last year, drawing criticism from certain quarters of the domestic professional community, particularly among smaller renewable energy producers.
A recent announcement on the EMS website revealed that the Energy Agency of the Republic of Serbia has approved the Development Plan for the Serbian transmission system for the 2023 period. This plan includes an analysis of production adequacy and the transmission system’s capacity.
According to Article 67a, paragraph 2 of the Law on the Use of Renewable Energy Sources, if the analysis indicates risks to the power system’s safe operation and justifies delaying connections, the transmission system operator must publish a notice on its website within ten days of the Energy Agency’s approval of the transmission system development plan. This notification informs investors lacking storage space for electricity that their connection to the transmission network may be postponed, potentially hindering the distribution of their generated electricity.
While authorities cannot outright refuse an investor’s request to connect their plant to the transmission network, they hold the power to delay the process. Consequently, if deemed necessary by the EMS, the only way to prevent postponement is for investors to build or lease storage space. Essentially, Serbian authorities have found a way to potentially prolong the connection process indefinitely.
The amendments to the Law on the Use of Renewable Energy Sources aim to address the surge in requests for new solar and wind farms. However, the increased requested capacity, from 4.8 GW to 20 GW in the last two years, surpasses the system’s balancing capabilities, prompting concerns from the system operator, Elektromreža Srbije. Thus, the amendments empower the system operator to delay connections if there isn’t sufficient reserve capacity for balancing. Still, investors can avoid delays if they secure additional balancing capacity themselves or through other market participants.
