New Laws in Serbia Promise to Advance the Energy Transition

October 05, 2021

Serbia is among the European countries with the highest energy intensity, largely dependent on fossil fuels, especially coal. Its development targets, however, call on the country to put its energy sector on a more sustainable footing by improving energy efficiency and increasing the use of renewable energy sources.

In support of these efforts, DAI is implementing Technical Assistance for Energy Efficiency and Renewable Energy Sources, a European Union project that contributes to the security of energy supply, a more competitive energy market, and sustainable energy development in Serbia.

A major achievement of the project is the adoption by the National Assembly of the Republic of Serbia of a Law on the Use of Renewable Energy Sources (RES Law). (A second major piece of legislation, the Law for Energy Efficiency and Rational Use of Energy, is currently in the drafting process with the Ministry in charge of energy and relevant public entities.)

Adopted in April, the RES Law enables large investments in the construction of solar power plants and wind farms, which will accelerate the decarbonization of Serbia’s energy sector and increase the share of renewables in Serbia’s energy consumption. Investors are already showing great interest in both wind and solar.

The law introduces auctions for the award of premiums, creates conditions conducive to the development of the renewable energy market, and allows citizens and companies to become “prosumers”—producing electricity for their own consumption. It also allows the state to tender for strategic partnerships for investments in green energy and bans construction of hydropower plants in protected areas.

Implementing the law will protect the environment, mitigate climate change, reduce costs for citizens, and promote the energy transition, according to the Ministry of Mining and Energy.