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ENTSO-E proposes delaying CBAM on electricity by one year

The European Network of Transmission System Operators for Electricity suggested to the European Commission to prolong the transitional period of the Carbon Border Adjustment Mechanism (CBAM) for electricity by one year, to January 1, 2027. It recommended an additional impact assessment, an analysis of possible exemptions for third countries as well as to exempt transmission system operators (TSOs).

In its new position paper, ENTSO-E supported the general principles of CBAM, but it warned against creating disproportionate administrative burdens and costs for TSOs. The pan-European body recommended exempting TSO activities from the CBAM scope, arguing there is a minimal risk of carbon leakage and pointing to their role in keeping the lights on and ensuring the security of the power system.

Moreover, ENTSO-E said an additional impact assessment is needed before the completion of the transitional period for electricity overall. The European Commission should also review in depth the list of third countries eligible for exemption, pending their adjustment to the European Union’s Emissions Trading System (EU ETS), it added.

The current criteria to calculate the actual emissions embedded in electricity production are impossible for importers to implement

“ENTSO-E encourages policy makers to use the targeted revision of CBAM part of the Omnibus simplification package on sustainability to postpone the definitive period as of 1 January 2027. It should also be noted that in its current form, the application of the provisions under CBAM regulation would have a major impact on the Energy Community countries and the UK imports,” the update reads.

Carbon leakage occurs when companies based in the EU move carbon-intensive production to countries with less stringent climate policies, or when EU products get replaced by more carbon-intensive imports.

CBAM was devised to bring CO2 prices for imported cement, iron and steel, aluminum, fertilizers, hydrogen and electricity to the same level as in EU ETS. Under the current rules, the EU will start charging CBAM at the beginning of January next year and gradually increase the tariffs to reach 100% at the start of 2034.

No provisions regulating implicit electricity trading

ENTSO-E acknowledged the role of the carbon border tax in putting a fair price on carbon emissions from carbon-intensive goods entering the EU, and to promote cleaner industrial production globally. Nevertheless, there are still many questions even about the current reporting obligations, it pointed out.

“TSOs adjacent to EU external borders are the most exposed to the concerns raised in this paper. It concerns a significant number of ENTSO-E members, almost one third of the EU members of the association,” the paper adds. In specific cases, the measures may also lead to efficiency losses, reduce EU competitiveness and reduce incentives for building and connecting offshore wind, it underscored.

Obstacles to importing electricity from third countries could contradict the goal of efficiently importing cheap green electricity

CBAM only assumes that electricity is traded with third countries through explicit allocation, not taking into account implicit trading. Like implicit electricity trading within the internal electricity market, there is no nomination on the interconnectors, only anonymous trading between markets, ENTSO-E explained.

“These obstacles to importing electricity from third countries could contradict the goal of efficiently importing cheap green electricity into the EU if applied also to third countries with robust decarbonisation policies and renewable energy sources. The current criteria to calculate the actual emissions embedded in electricity production make it impossible for importers to implement, mainly due to impossibility to trace the origin of the electricity,” the TSO network stressed.

CBAM would tax historical instead of actual emissions

The current default CO2 levels are based upon the carbon intensity of the five-year average through 2020, even though third countries made tremendous efforts in decarbonising their energy mix in the meantime, according to ENTSO-E. It suggested allowing such countries to be exempted if they verify their progress through proper data platforms.

ENTSO-E invited the European Commission to envisage a revision aligned with the current delay in CBAM implementing acts, stressing that it is impossible for the market to digest them before the end of the year.

Energy Community contracting parties, including the Western Balkans, are eligible for exemption from CBAM on electricity until 2030. The condition for each one is to couple its electricity market with an EU neighbor.

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ScadaWatt seeks partners in Serbia to deploy its energy digitalization systems

Electronic equipment and software company ScadaWatt, which currently manages a portfolio of 800 MW of solar power plants worldwide, is looking for partners in Serbia to deploy its energy digitalization systems. ScadaWatt, a bronze sponsor of the Belgrade Energy Forum 2025, provides remote monitoring and control systems for solar power plants.

“We are here to make new collaborations in digital transformation in the energy sector and to build new partnerships,” said Esma Şahin, ScadaWatt’s representative at BEF 2025.

“In Serbia, we are currently launching a local service with multilingual support, and we offer fast, reliable technical support with our local service team,” she stated on the sidelines of the conference.

Around 800 MW of solar power plants worldwide are currently managed completely by ScadaWatt’s management and monitoring systems, according to Şahin.

ScadaWatt’s systems are monitoring 800 MW of solar power plants worldwide

The Turkish company’s flagship product is ScadaWatt solar power plant monitoring automation, which represents the culmination of extensive experience gained in the solar energy sector. The company’s products enable users to simultaneously compare data from sensors such as inverters, energy analyzers, and electric meters, according to its website.

ScadaWatt designs and manufactures energy efficiency solutions, including SCADA (supervisory control and data acquisition) devices, sensors, and protection relays.

“We provide monitoring and control systems for solar power plants. Also in our portfolio, we have meteorological sensors, protection relays, and RTU (remote terminal unit) devices,” said Şahin.

The company’s Zero Injection Module enables the dynamic proportional-integral-derivative (PID) control of inverters, measuring consumption values and adjusting electricity production to match consumption. This ensures that no energy is fed back into the grid, according to ScadaWatt’s website.

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Serbia’s EMS starts construction of third section of Trans-Balkan Corridor

The foundation stone was laid today in Serbia for the third section of the Trans-Balkan Electricity Corridor. The investment amounts to EUR 100 million. It entails a high-voltage overhead power line of 109 kilometers between Obrenovac and Bajina Bašta, equipping two new switchyards in the Obrenovac transformer substation and upgrading the Bajina Bašta substation to 400 kV. The fourth and last section, with the interconnections with Bosnia and Herzegovina and Montenegro, is planned to be completed in 2028.

Serbian Minister of Mining and Energy Dubravka Đedović Handanović said at the groundbreaking ceremony for the third section of the Trans-Balkan Corridor that it is the most important project for the transmission system not only in the country but in Southeastern Europe.

“What highways are for transportation, high-voltage power lines are for energy, and today we are beginning the works on the new part of the most important energy highway,” she said in Obrenovac and added that the segment would enhance the security of supply for consumers in western Serbia.

The third section of the Trans-Balkan Electricity Corridor involves the construction of an overhead power line of 109 kilometers on 309 towers, equipping two new switchyards in the Obrenovac substation and lifting the voltage level in the Bajina Bašta substation to 400 kV.

The project is financed with a EUR 64.5 million loan from Germany’s KfW Development Bank, a grant from the European Union via its Western Balkans Investment Framework (WBIF) of approximately EUR 21 million, and own funds of the Serbian transmission system operator Elektromreža Srbije (EMS), according to the state-owned company’s announcement. The third section is worth EUR 100 million, of which EUR 71 million is for the overhead power line.

“With the completion of the entire project, we will additionally strengthen the links with Bosnia and Herzegovina and Montenegro and beyond, with Italy,” Đedović Handanović stated.

She recalled that significant transmission grid investments are planned in the next five years, including the construction of the Pannonian Corridor toward neighboring Hungary. The priority projects in the segment are worth EUR 500 million in total, the minister revealed.

“I expect the contractors not to be late with the works, so that the project is completed within two and a half years, as it is planned,” Đedović Handanović stressed.

Matejić: Final section to be finished in 2028

General Manager of EMS Jelena Matejić said the construction of the entire Trans-Balkan Corridor is worth more than EUR 200 million. She noted that it includes 323 kilometers of 400 kV power lines, voltage level upgrades for two transformer stations and switchyards in three of them.

The investments in the Trans-Balkan Corridor are estimated at more than EUR 200 million altogether

“Except this section, the third one, we will also have the fourth, for which the funds have been secured, and it will be finished in 2028,” Matejević asserted.

The old lines in western Serbia of 220 kV will be replaced with new, 400 kV systems, which will create possibilities for connecting the planned Bistrica pumped storage hydropower plant to the grid, according to EMS. The contractor is Kodar Energomontaža, and the works are expected to be completed by 2027.

EU donated EUR 38.3 million for Trans-Balkan Electricity Corridor

Head of the EU Delegation in Serbia Emanuele Giaufret pointed out that the funds the EU has earmarked for the current section are part of wider support.

“The EU has secured a EUR 38.3 million donation for the whole Trans-Balkan Corridor, together with KfW’s favorable loans. Over the years, the EU has earmarked more than EUR 1 billion for the energy sector in Serbia. This project is important for the rest of Europe as well, because it will contribute to the creation of a wider, integrated system, which will enable a more stable supply to consumers on the entire continent, as well as to avoid problems in the future,” he stated, as quoted by EMS.

The first section of the Trans-Balkan Corridor, from the city of Pančevo near Belgrade to the Romanian border, was finished in 2017. The second one, between Kragujevac and Kraljevo in central Serbia, is operational since 2022. It included substation upgrades in the two cities. The fourth section needs to connect Bajina Bašta with nearby Višegrad in Bosnia and Herzegovina, and with Pljevlja in Montenegro.

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NGOs request withdrawal of draft just transition action plan in Serbia

Eighteen non-governmental organizations have criticized Serbia’s draft just transition action plan and called for the creation of a new document with concrete measures and activities. The Ministry of Mining and Energy said the adoption of the action plan should enable the establishment of an institutional framework for managing a just transition and define the most important activities up to 2030.

The Ministry of Mining and Energy recently published a draft just transition action plan and launched a public debate. The plan foresees investments of EUR 88 million.

The presentation of the draft took place yesterday in the Chamber of Commerce and Industry (PKS) in Belgrade. The public debate began on May 21 and ended today.

According to the Renewables and Environmental Regulatory Institute (RERI) and the Belgrade Open School, with support from 16 organizations, the ministry announced at the debate in PKS that the energy transition would be postponed until 2030 and that the proposed measures would be limited to preparatory activities aimed at preventing the negative outcomes of the energy transition.

The NGOs called for the development of a new draft with concrete measures and activities for a just transition.

The organizations urged the EBRD to check if the drafting and adoption of the document is in line with its standards

They called on the ministry to restart the preparation of the draft in line with the standards of the Law on the Planning System and the Energy Community’s guidelines for planning the just transition. They also urged the European Bank for Reconstruction and Development (EBRD) to compare the document’s drafting and adoption process against its environmental and social protection standards.

Of note, the draft is the result of a project funded by the EBRD. The NGOs outlined five main shortcomings.

The public debate was supposed to be organized in Lazarevac, Obrenovac, Kostolac, Požarevac, and other locations where the residents will be most affected

The first is that the public was neglected (the 20-day period for public debate is insufficient; no presentations were held in Lazarevac, Obrenovac, Kostolac, Požarevac, or other places where the residents will face the greatest and most direct impact). Another one is legal baselessness.

The third objection relates to the fact that the measures are neither precise nor substantive but only preparatory (most of the proposed measures are either preparatory or require additional analyses and research). The next item is that half a million euros are envisaged for updating recently adopted acts (it is not specified which strategies, laws, and bylaws need to be amended).

Finally, the civil sector criticized the fact that there is no precise date for phasing out coal-fired electricity production (it prevents affected communities and workers from making rational and informed decisions).

Zlatković: The draft action plan serves as an introduction to a broader energy transition process

Aleksandar Zlatković – second from left (photo: Ministry of Mining and Energy)

Aleksandar Zlatković, advisor to the minister of mining and energy and head of the working group for the preparation of strategic documents at the ministry, said that the draft action plan represents an operational framework for the specification of the strategic goals defined in the Integrated National Energy and Climate Plan until 2030, with a vision to 2050 (INECP), and the Energy Development Strategy until 2040, with projections to 2050.

The proposed measures include support for workers and communities in transition, strengthening local economies, education, and retraining, as well as capacity building for local authorities.

The detailed elaboration and identification of priority territories and targeted measures will be carried out by bodies that are planned to be established

According to Zlatković, the document also serves as an introduction to a broader energy transition process and establishes the institutional framework for setting up the bodies that would systematically manage and plan the just and energy transition processes.

“It is important to emphasize that the action plan provides only illustrative examples for some potentially affected regions. The detailed elaboration and identification of priority territories and targeted measures will be carried out through the work of the newly formed bodies, primarily after the adoption of the decarbonization plan of Elektroprivreda Srbije (EPS),” Zlatković stated. The state-owned power utility is expected to produce the document by the end of the year, he added.

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TotalEnergies to build 100 MW solar power plant with energy storage in Cyprus

TotalEnergies is betting big on the solar power market in Cyprus. It won the environmental approval for a photovoltaic park of 100 MW in peak capacity, with energy storage. It intends to build it in an area previously designated for a golf course.

France-based TotalEnergies is an oil supermajor, but also one of the world’s largest renewable energy developers. The company is planning to build a photovoltaic system in Cyprus equivalent to a quarter of all the current capacity in larger solar power units in the country, even though the competition in the segment is enormous.

At the same time, grid stability in the island state is under jeopardy given the surge in PV investments and the lack of energy storage. According to a recent statistical report, Cyprus hosted almost 850 MW of solar power, of which less than 400 MW was in commercial photovoltaic plants. Prosumers operated the rest. Licensed projects amounted to 2.8 GW.

In the first five months of the year, according to the CyprusGrid tracker, 58% of green electricity production was curtailed, out of a potential 251 GWh, pv magazine reported. It compares to 29% in all of 2024, 13.4% the year before and 3.3% in 2022.

The Department of Environment has issued consent for TotalEnergies’ solar power project of 100 MW in peak capacity, Philenews reported. The company is conducting it in cooperation with Universal Green Energies. It is a subsidiary of Universal Golf Enterprises, the owner of the land.

The environmental authority’s positive opinion is valid for the duration of urban planning and other permits.

Environmental approval conditioned on wildlife protection, reforesting

The area of 200 hectares was originally intended for a golf course. It is on the territory of the villages of Vasa Kellakiou, Asgata and Sanida in the Limassol district.

The photovoltaic park would cover 83 hectares, of which 44 hectares would be under solar panels. The plan includes a substation and energy storage. Annual output is estimated at 160 GWh, equivalent to the electricity needs of 33,000 households.

The PV park would generate an estimated 160 GWh per year

TotalEnergies and its partner are obligated to protect fauna and flora and exclude water streams and protected zones from construction works. They are not allowed to install solar panels on land with a slope higher than 25%. The companies especially need to preserve the habitats of protected species, including the Bonelli eagle.

The environmental approval was issued with a condition to plant trees and shrubs instead of the ones that would be removed during construction.

Villagers concerned about environmental, economic impact

Some representatives of the local population in Sanida expressed concern, among other matters, over the effect of the planned solar park on the air temperature in the area. Residents of Asgata argued that the local community would benefit more from a golf course.

At the end of the first quarter, TotalEnergies had 28 GW of gross renewable electricity capacity installed worldwide. It aims to reach 35 GW by the end of the year and 100 GW in 2030.

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EU’s strategic status for Rio Tinto’s lithium project risks fueling tensions in Serbia

After the European Commission declared Rio Tinto’s project Jadar a strategic raw materials project, the company and Serbian officials claimed it implies the strictest environmental protection standards and that it would enable the creation of up to 20,000 highly qualified jobs. The opposition and local and environmentalist activists vowed to continue to resist the plan to launch a lithium mine and processing facility, and accused the European Union of colonialism.

The addition of the planned lithium mine near the city of Loznica in Serbia to the EU’s strategic projects for essential raw materials has again stirred up public controversy in the country, after several waves of social unrest. Rio Tinto stressed that it remains committed to dialogue with all stakeholders.

Brnabić: It’s not true that Serbia is a European mining colony

Both the global mining giant and Serbia’s National Assembly Speaker Ana Brnabić claim that project Jadar would enable the creation of up to 20,000 jobs. The environmental standards for similar projects in the EU will need to be completely replicated, she asserted. It also shows that it’s not true that Serbia is a European mining colony, like what certain people said, Brnabić added.

“We won’t be exporting our lithium, but use it for improving the standard of living,” she stated.

Of note, the European Union only endorsed the mining segment of the project as strategic, while Rio Tinto has also published plans for a processing facility for jadarite, a lithium and boron mineral.

Ecological Uprising’s leader Aleksandar Jovanović Ćuta says decision is death sentence

Member of parliament Aleksandar Jovanović Ćuta called on citizens, students and environmentalist organizations to an “all-out mobilization” and added that they wouldn’t allow lithium to be mined. He is the most prominent figure in the Ekološki ustanak (Ecological Uprising) movement. “A death sentence has been signed for everything in the Jadar valley that breathes, lives, moves and flows,” and the population in the affected area in western Serbia was “designated the destiny of becoming environmental refugees,” in his opinion.

“Anyone who includes such projects in their agendas, whether it is the European Union or Russia – such people don’t want anything good for us,” Jovanović said.

The opponents of project Jadar are accusing the EU and Serbian authorities of colonialist relations

The Kreni-promeni (Go-Change) movement, which has representatives in local parliaments in the largest cities, recalled that the Government of Serbia abolished the Jadar project in early 2022, following large environmental protests and blockades. “The latest attempts to revive the project were preceded by the controversial ruling of the Constitutional Court, which Kreni-promeni deems synchronized and contrary to the principles of the rule of law and the constitutional separation of powers,” its statement adds.

The country’s parliament never voted on a people’s initiative, signed by over 38,000 citizens, even though it was legally obligated to.

Assigning the strategic status is a new proof of colonial policy toward Serbia, which is supposed to secure raw materials for the stumbling automotive industry in the EU, according to Novi DSS, a right-wing parliamentary opposition party. There can be no jadarite mining, it stressed in its reaction.

Not enough transparency or local population’s participation in decision making

The EU’s strategic projects lack proper safeguards, transparency, and local involvement – putting human rights, indigenous rights, and environmental protection at serious risk, the EU Raw Materials Coalition (EURMC) said in a statement published by the European Environmental Bureau (EEB), a network of environmentalist groups.

It risks repeating colonial patterns of resource extraction, they warned. Several selected projects from the new list are in countries outside of the EU with weak industrial governance systems, nongovernmental organizations underscored.

Matković: The EU just added fuel to the fire

Endorsing project Jadar despite unresolved legal, environmental, and social issues suggests a troubling disregard for public opposition and due process, EEB said. The move risks reigniting tensions on the ground, it warned.

“The EU just added fuel to fire. It backed an authoritarian regime and a corporation against whom 63% of the population now stand to fight at a time when the entire country is under blockade and violence. The EU will thus lose support in Serbia and the region and probably cause further social unrest. The fact that the Serbian President Aleksandar Vučić announced the board’s decision more than a week before it was public, also raises questions of legitimacy behind the decision,” said Aleksandar Matković, a research associate from the Institute of Economic Sciences in Belgrade, Serbia.

EU fueling euroscepticism

Berlin-based Heinrich Böll Stiftung – Foundation argued that with its new move, the EU ignored the lack of rule of law in Serbia and intense domestic opposition to Rio Tinto’s investment in Serbia.

“Activists and students involved in the pro-democracy movement argue that the EU’s endorsement undermines democratic voices and risks fueling Euroscepticism in the region. With Serbia’s government under pressure from ongoing protests and corruption allegations, the EU’s move is seen as politically damaging and potentially destabilizing,” it said.

The foundation is in close relations with German opposition party Alliance 90/The Greens.

Balkan Green Energy News has published a chronological overview of the key events since 2001, when Rio Tinto arrived in Serbia.