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President of Serbia Aleksandar Vučić said in Brussels that the European Commission would award “in seven or eight days” a strategic status to Rio Tinto’s Jadar project in Serbia for mining and processing a lithium ore. Marš sa Drine, together with a number of other environmentalist groups in Europe, stressed they would contest such a designation as well as several projects that were just approved in the European Union. They include proposals for lithium mines in Portugal and Spain and the Rovina copper and gold mine in Romania.

The European Commission has approved the first 47 strategic projects in EU territory yesterday, for the production of critically important raw materials. Most are used for manufacturing batteries. According to the announcement, “the decision on the potential selection” of proposals for facilities in third countries “will be adopted at a later stage.” The EU’s Critical Raw Materials Act (CRMA) stipulates that such strategic projects are eligible for administrative and financial support.

Serbian President Aleksandar Vučić is convinced that “in seven or eight days” the EU would declare that the Jadar lithium project in his country’s west is strategic. He made the claim the same evening in Brussels, where he met with the bloc’s top officials. The proposal is for Rio Tinto’s underground mine and processing unit near the city of Loznica, including mining waste dumps.

The controversies around project Jadar, centered around a unique mineral called jadarite, have sparked several waves of massive protests since 2021. Balkan Green Energy News has a chronological overview of the most important events since 2001, when Rio Tinto established a subsidiary in Serbia.

Novaković: We are no playground for mining mafia

Together with nongovernmental organizations and community associations from Romania, Germany, Spain and Portugal, the Marš sa Drine group from Serbia reacted to the European Commission’s decision, and later also to Vučić’s statement. They said they would legally challenge the strategic status designation for disputed mining projects. Locals and environmentalists alike have long contested them, the note reads.

They highlighted Jadar, lithium mines Mina do Barroso and Mina do Romano in Portugal and Mina Doade and Mina Las Navas in Spain as well as the plan for the Rovina copper and gold mine in Romania.

Environmentalist groups have hired lawyers to legally dispute the designation of several mining projects as strategic

“We are not a playground for the mining mafia. Our lawyers in Europe are completing legal complaints for annulling this decision. Rio Tinto has shown disregard for the rule of law in Serbia,” said Bojana Novaković from Marš sa Drine. She accused the EU of supporting environmental destruction and corruption because of lithium. Marš sa Drine is part of the Association of Environmental Organizations of Serbia (SEOS).

Extraction of cheap raw materials for the automotive industry in Germany and elsewhere jeopardizes the way of life of people in the area of Covas do Barroso in north Portugal, local activist Nelson Gomes said.

“We, who live from sustainable livestock farming and depend on clean rivers and green pastures, would only experience disadvantages. The proposal is far from a just transition – mining in Portugal does not abide by the rules and the authorities do nothing,” he underscored.

The Rovina gold-copper open cast mine will destroy pristine nature and displace communities and the European Commission’s designation legitimizes a project deemed illegal by courts in Romania, activist Roxana Pencea Brădățan pointed out.

Lithium mining on both sides of German-Czech border

The environmentalists also listed the Zinnvald lithium mining project in Germany, even though it hasn’t (yet) been labeled strategic. Notably, the location is in the same area as the Cínovec strategic litium mining project, right across the border in the Czech Republic.

“The cumulative impact of these two large mines on protected sites and on adjacent villages and towns is not being considered. From our region’s past, we know that the larger the mines, the greater the harm. We will not allow this again,“ said Anja Weber, a local from Bärenstein, near the Zinnvald site.

Amid tightening geopolitical pressure, the EU strives to unlock partnerships with third countries for minerals and to bolster the domestic mining of metals for the energy transition, according to the document, signed by Marš sa Drine, Bürgerinitiative Bärenstein, MiningWatch Romania, MiningWatch Portugal and Iberian Mining Observatory.

CRMA enables overriding public interest, they added. Activists and affected communities have been warning since the act’s drafting of its incompatibility with, for instance, the EU’s Habitats Directive, the Water Framework Directive and the Birds Directive.

The European Commission adopted a list of strategic projects to boost domestic raw material capacities. Sites for the entire first group are in European Union member states and the ones in third countries are set to be declared later. Metlen, Imerys, Vulcan Energy, Fortum and Northvolt are among the companies that got their proposals designated.

Of all 47 projects, 18 involve lithium and seven are proposed investments for mining the alkali metal.

In line with the Critical Raw Material Act (CRMA), the European Commission revealed the first 47 strategic projects that it expects to contribute to the green and digital transitions and support the defense and aerospace industries. The aim is to boost domestic capacities for strategic raw materials, strengthen the domestic value chain and diversify sources of supply in the sector.

The EU is striving to cover 10% of its demand by extraction and 25% from recycling as well as to reach a rate of processing of 40% of its consumption, all by 2030.

The European Commission plans the next call in late summer

By the call deadline in August, 170 applications were received, of which 49 from outside the EU. In the list, 77 are focused on extraction, 58 on processing, 30 on recycling and five on substitution. The European Commission plans the next call in late summer.

Locations for the selected batch are all in EU member states while “the decision on the potential selection” of the ones in third countries “will be adopted at a later stage,” the update reads. The sites are in 13 countries: Belgium, France, Italy, Germany, Spain, Estonia, Czechia, Greece, Sweden, Finland, Portugal, Poland and Romania.

Notably, one of the candidates is Rio Tinto’s disputed Jadar project in Serbia. The mining giant is planning underground exploitation of lithium and the construction of a processing facility.

Lithium mining projects are in Spain, Portugal, Czechia, France, Finland

Most projects promoted today focus on battery materials, though they have various other uses, too. Eighteen involve battery-grade lithium, though only seven are for mines or for both mining and processing. Two are in Portugal – Barroso Lithium Project and Romano Mine, and two in Spain. Las Navas was developed by Lithium Iberia while Mina Doade belongs to Recursos Minerales de Galicia (RMG), a subsidiary of SAMCA Group.

Vulcan Energy Resources and Eramet made it to the list with their proposed investments in the extraction of lithium from geothermal waters

The remaining three projects are Cínovec in the Czech Republic (by Geomet), Emili in France (by Imerys) and Keliber in Finland, developed by Keliber Technology. It is a subsidiary of precious metals producer and refiner Sibanye-Stillwater.

The European Commission also picked two projects for the extraction of lithium from geothermal waters. One is Zero Carbon Lithium of Vulcan Energy Resources, in Germany. French firm Eramet made it to the list with its AGeLi (Alsace Géothermie Lithium) endeavor.

Northvolt, Fortum to obtain battery materials through recycling

Four strategic projects are for processing lithium alone and five are just for recycling it.

Bankrupt electric vehicle battery manufacturer Northvolt managed to enter the list, via its firm Northvolt Revolt. Their NorthCycle recycling project in Sweden is for manganese, lithium, graphite, nickel and cobalt.

Another notable beneficiary is Finnish energy giant Fortum. Project Fortum Hydromet, developed by Fortum Battery Recycling, is for lithium, graphite, copper, nickel and cobalt.

There are three mining projects for cobalt: two in Finland and one in Spain. One adopted proposal, in Sweden, is for the extraction of rare earth elements for magnets and a processing unit.

Romania’s national salt company to mine graphite

As for the region that Balkan Green Energy News covers, all four locations are for mines. Romania hosts one for copper, one for magnesium and one for battery-grade graphite. The last one, Salrom Baia de Fier, was submitted by state-owned salt producer Societatea Națională a Sării (Salrom). The site is in Gorj county in central Romania.

Metlen Energy and Metals, formerly called Mytilineos, and its subsidiary European Bauxites were selected with their project in Greece. It is for a mine called Baux-EU and processing units Gallent and Leader. The company intends to extract bauxite and produce alumina, aluminum and gallium.

Selected projects for strategic raw materials sufficient to meet 2030 targets for lithium, cobalt

The chosen proposals will ensure that the EU can fully meet its extraction, processing and recycling 2030 benchmarks for lithium and cobalt, while making substantial progress for graphite, nickel and manganese, the European Commission claimed.

The chosen proposals imply EUR 22.5 billion in combined investment to become operational

“At the very start of our most strategic supply chains, are raw materials. They are also indispensable to the decarbonisation of our continent. But Europe currently depends on third countries for many of the raw materials it needs the most. We must increase our own production, diversify our external supply, and make stockpiles,” said the European Commission’s Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné.

To become operational, the strategic projects require EUR 22.5 billion in overall capital investment. They are eligible for support by the European Commission, member states and financial institutions. CRMA limits permitting to 27 months for extraction projects and 15 months for others. Currently, permitting processes can last five or even ten years, the update notes.

China will be Serbia’s yet another partner in developing nuclear energy. So far, contacts have also been made with Russia, France and Slovenia.

State-owned Nuclear Facilities of Serbia has signed a memorandum of understanding with the China Institute of Atomic Energy (CIAE).

The document was signed in Beijing by Dalibor Arbutina, CEO of Nuclear Facilities of Serbia, and Yang Hongyi, Director General of CIAE.

The memorandum envisages strengthening cooperation between the two countries in decommissioning a heavy-water research reactor, radioactive waste management, radiation protection, and the exchange of knowledge and experience, local media reported.

The document enables the implementation of joint projects, staff training

The agreement creates conditions for joint projects, staff training, and technical support.

It is part of bilateral cooperation between the only Serbian nuclear operator and China’s largest nuclear institute. The memorandum aims to strengthen technical cooperation and connect Nuclear Facilities of Serbia with the most important global partners in the nuclear energy and environmental protection sectors.

In November of last year, Serbia adopted the changes to the Law on Energy and lifted the ban on the construction of nuclear power plants, introduced in 1989. The idea to introduce nuclear energy in Serbia was announced by President Aleksandar Vučić in 2021.

A few months later, in November, Vučić met with Director General of Rosatom Alexey Likhachev. One of the topics discussed was the possibility of building a nuclear power plant, according to the president.

A memorandum was signed with EDF

In April 2024, a memorandum of cooperation was signed with French state-owned energy company Electricite de France (EDF). It envisages nuclear energy as one of the areas of cooperation.

A few months later, the Government of Serbia awarded a contract to EDF and Egis Industries for a preliminary technical study considering the peaceful use of nuclear energy.

Two months ago, Minister of Mining and Energy of Serbia Dubravka Đedović Handanović met with Ambassador of Slovenia Damjan Bergant to discuss potential cooperation in the field of nuclear energy.

Croatia plans to install an electricity interconnector under the Adriatic Sea to Italy, but also to build a nuclear power plant, according to Minister of Economy Ante Šušnjar. In his words, nuclear and geothermal energy are crucial for the country’s energy security.

Economy Minister Ante Šušnjar highlighted the importance of connecting the power grids of Croatia and Italy. The two countries are discussing an underwater power link between Dalmatia and the Italian coast, he underlined.

A subsea power cable would significantly relieve the Croatian network during periods of peak loads on the coast, and at the same time open up the possibility of two-way transmission of electricity, including the export of electricity to Italy – one of the largest European consumers, Šušnjar pointed out at the Energy Revolution – Road to a Sustainable Future conference, organized by Poslovni Dnevnik.

It is unfortunate that Croatia doesn’t have a power link with Italy, like Montenegro and Albania

He expressed the belief that the cable would solve the problems that Croatia’s coastal areas have from generating power with solar power plants and wind farms.

Technical plans for the project already exist, but it is difficult to talk about deadlines, he said. Once the political and market conditions are met, the cable could be installed in no time, the minister claimed.

In his words, Croatia sadly doesn’t have a power link with Italy, like Montenegro and Albania, Telegram.hr reported. Of note, the Montenegro-Italy cable has been operational since 2019, while Albania and Italy recently announced plans to install one.

Croatia intends to build a nuclear power plant

He recalled the importance of diversifying energy sources, highlighting geothermal as a stable, year-round renewable source with great potential, especially in the Croatian part of the Pannonian Basin.

In addition to geothermal, Croatia is considering the role of nuclear energy. It has established a working group to analyze options including an extension of the operation of the Krško nuclear power plant, construction of new capacities, and development of small modular reactors (SMRs).

Geothermal and nuclear energy are opportunities for sustainability, technological progress, and greater energy security, Šušnjar underscored.

He stressed Croatia’s intention to install a nuclear power plant and hinted at the SMR technology.

Aurora Energy published a long-term outlook about prices and renewable energy investments in Greece.

Baseload power prices in the country are expected to peak in 2025 due to higher demand and gas volatility, says Aurora, then drop as renewable energy expand and gas markets stabilize.

Renewable energy projects’ capture prices decline after 2030, especially for solar. However, compared with the levelized cost of electricity (LCOE), they are expected to provide investable returns in the long run.

From 2031 onwards, the analysts see onshore wind capture prices declining by an average of 1% annually, following the trend in the baseload segment.

From 2031 to 2060, solar capture prices are anticipated to be, on average, 54% lower than baseload prices, surpassing wind due to higher capacities and increased synchronous solar generation, which leads to greater price cannibalization.

As for energy storage, Aurora highlighted the importance of the average spread between the lowest and highest prices within the day. It expects an increase of 20% from 2026 to 2040. Namely, high solar and wind output during low demand periods lowers prices, while high demand and low renewables push prices up, with hydropower and gas-fired plants setting prices amid higher gas and carbon costs, the firm explained.

Aurora expressed the belief that when it comes to merchant battery projects, their viability would depend on their entry year, as well as the hourly storage duration. Early investments are expected to capture higher returns than later ones.

Negative prices introduced

Except the said long-term trends, a change in the Greek power market will soon affect renewable energy producers.

Ahead of Greece’s entrance into the PICASSO balancing energy platform, the Independent Power Transmission Operator (IPTO or ADMIE) opened the door for negative prices in the balancing market, at a maximum of EUR 50 per MWh. The change will be applied sometime within the next few months.

It is only the first step and the limit would gradually increase to EUR 15,000 per MWh below zero. Owners of renewable electricity plants of certain categories would be impacted because until now, prices in the wholesale market rarely went below EUR 0.04 per MWh.

Even at such a low level, producers are still able to get paid fully based on their contracts for difference (CfDs). However, if there are two consecutive zero or negative hourly prices, they would receive nothing and may even have to pay to produce in such periods.

During the recent Power & Gas Forum held in Athens, Aristotle University of Thessaloniki Professor Stavros Papathanasiou warned that negative prices would become a much stronger threat to investments in renewables.

A new support program has been launched in Greece to help households install new solar heaters or heat pumps.

The government has announced a new EUR 223.2 million support program to facilitate the use of green heating systems for households, such as rooftop solar heaters and heat pumps. It takes place under the RePowerEU policy initiative and the National Recovery and Resilience Plan Greece 2.0. They are financed from the EU’s NextGenerationEU package for economic recovery from the COVID-19 pandemic.

The program supports the purchase of new solar heaters, covering 50% to 60%, depending on the applicant’s income. Eligible costs for heat pumps amount to 50%, while installation works are also covered with 50% to 60%.

The systems can be installed in primary or secondary residences. The program also takes into account the number of children, the location of the house and the local climate to determine the extent of the support. In previous programs, the condition of the house and its energy label were the primary considerations.

Households can apply until the end of March.

More programs for houses, water utilities and schools

Another significant program running this year is for energy saving in houses with a budget of EUR 434 million. Its goal is to reduce energy consumption by a minimum of 30% and lift the energy class by at least three grades. Houses in Evrytania, Kozani, Florina, Imathia and Kastoria have priority as the coldest areas in the country.

In addition, the Ministry of Environment and Energy prepared a program to upgrade schools, water utilities and hotels in mountainous regions. It earmarked EUR 49.6 million, EUR 40 million and EUR 10 million, respectively.

While the grant schemes are vast, a major question is whether the state will pay beneficiaries on time. During previous energy saving schemes, big delays were reported and many citizens and businesses have not received the money yet. In any case, Minister of Environment and Energy Thodoros Skylakakis said the application deadlines wouldn’t be extended.