In Serbia, companies that operate SHPPs have the status of privileged electricity producers due to the promise of the state to the Energy Community that by 2020, 27 % of electricity will be produced from renewable sources. This means that the state buys electricity produced by SHPPs at higher prices in order to encourage investors to invest in that business.
In 2020, 120 small hydropower plant (SHPP) produced and sold to the state electricity worth about 21.5 million euros, majority of which was paid to state-owned EPS operated plants. Some 2.8 million euros were paid to SHPPs Medjuvrsje and Ovcar Banja in 2020, which are operated by EPS. Compared to 2019, these figures are lower because, during the state of emergency in the first half of 2020, subsidies were not paid at the full price. Thus, EPS received about a million euros less for the production of its two SHPPs, compared to the previous year. The highest amount of subsidies were paid to wind energy producers (about 60 %), while 17 % was paid to SHPP operators.
