Serbia’s energy strategy: Transitioning to renewables and reducing fossil fuel dependence by 2040

The National Assembly of Serbia has passed the Energy Sector Development Strategy for the country, extending through to 2040 with projections up to 2050. This strategy aims to overhaul Serbia’s energy landscape, with a focus on reducing the environmental impact and improving the sustainability of energy production.

Key aspects of the strategy include:

1. Phasing out coal and oil: A central goal is to end the use of coal and oil derivatives in heat production. This aligns with Serbia’s commitment to reducing greenhouse gas emissions and the harmful effects of these energy sources on health and the environment.
2. Renewable energy expansion: The strategy plans to increase Serbia’s renewable energy production. This involves constructing more solar and wind power plants, rehabilitating existing hydropower facilities and building pumped storage hydropower plants such as Bistrica and Đerdap 3.
3. Hydrogen and green hydrogen: Serbia aims to integrate hydrogen, including green hydrogen, into its energy system, signaling a transition towards cleaner fuels.
4. Infrastructure modernization: Energy transmission and distribution networks will undergo significant modernization to reduce energy losses and increase efficiency. This includes adapting the power grid to support electromobility and facilitating the growth of electric vehicles.
5. Support for prosumers: The strategy includes simplifying procedures for “prosumers” (buyers-producers), who generate their own energy, often from renewable sources. Financial incentives will be provided for both individuals and businesses to improve energy efficiency.
6. Natural gas and oil sector investments: The strategy also includes plans for expanding gas storage capacities, including the Banatski Dvor gas storage facility, and building interconnections with neighboring countries such as Romania and North Macedonia. In the oil sector, the strategy focuses on increasing the mandatory reserves of oil derivatives and developing a pipeline connecting Serbia with Hungary.

Overall, the Energy Sector Development Strategy is a comprehensive plan to modernize Serbia’s energy infrastructure, reduce reliance on fossil fuels, and invest in renewable energy sources, hydrogen technology and energy efficiency measures, all while aiming to lower greenhouse gas emissions.