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Serbia urged to accelerate energy sector reforms and cut emissions from thermal power plants

Artur Lorkowski, Director of the Energy Community Secretariat, has expressed concern over the continued high levels of sulfur and dust emissions from Serbian thermal power plants. According to Lorkowski, these emissions remain inconsistent with the Energy Community’s environmental standards adopted in 2018, and he underscored the urgent need to replace outdated infrastructure with cleaner, decarbonized energy sources.

In his remarks, Lorkowski proposed a structured and gradual phase-out of Serbia’s large combustion plants, recommending their replacement with renewable energy facilities. He emphasized that this transition is essential for Serbia to align its energy policy with the commitments and directives of the Energy Community and the European Union.

The latest Energy Community report also pointed out several other challenges in Serbia’s energy sector. Despite regulatory requirements, the certification of Jugorosgas-Transport has seen no progress since a plan was approved in 2021. Additionally, the operator of the Banatski Dvor gas storage facility has not yet been unbundled, even though the deadline for compliance passed on 31 March 2024. Srbijagas, the national gas distribution company, also remains unbundled in violation of gas market regulations.

The report criticized Serbia for failing to provide third-party access to its gas transmission and storage infrastructure, and described the country’s wholesale and retail energy markets as among the most monopolized in Europe. Although the Serbia-Bulgaria gas interconnector is completed and technically operational, it has not yet begun commercial activities, and its usable capacity remains unclear despite a nominal technical capacity of 1.8 billion cubic meters per year.

On a more positive note, Lorkowski acknowledged that the implementation of Serbia’s National Energy and Climate Plan (NECP) is gradually moving forward. A gas emission system is currently being developed, with the first permits already issued. Discussions with the Ministry of Mining and Energy have yielded agreements on renewable energy goals. The report also recognized improvements in energy efficiency following the adoption of a new energy law in 2021, as well as progress in oil supply security.

Further, he welcomed Serbia’s recent adoption of a directive on environmental impact assessments, which allows for the legal protection of sensitive areas—an important move for boosting investor confidence in green energy projects.

Serbian Minister of Mining and Energy, Dubravka Đedović, stated that the country is undertaking major reforms in the energy sector as part of its EU accession path. These reforms are intended to support the energy transition while maintaining a reliable energy supply. She noted that the Energy Community report acknowledged Serbia’s leadership in regional energy reforms, particularly in electricity market liberalization and renewable energy development.

Minister Đedović also confirmed that after more than a decade, the certification of Transportgas has been finalized. She highlighted the adoption of amendments to the Energy Law at the end of 2024, which introduced rules on clean electricity and cross-border transmission capacity allocation—steps needed for market integration with EU countries.

Looking ahead, she announced that six new regulations and three energy-related laws, including those focused on oil and gas, are set to be adopted by June 2025. Furthermore, she stated that the desulfurization system at the Nikola Tesla B thermal power plant will be completed by the end of this year, bringing 90 percent of Serbia’s thermal power plant capacity in line with strict environmental standards for sulfur dioxide and particulate emissions.

Minister Đedović concluded by affirming that by 2030, half of Serbia’s electricity generation is expected to come from renewable energy sources, reflecting a significant transformation of the national energy mix.

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