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May 16, 2025
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Weakness in Serbian energy system is no option

Serbia’s state-owned power utility Elektroprivreda Srbije (EPS) is committed to its own and the country’s goals for green energy and emission cuts, but it is sustainable only if it doesn’t jeopardize energy security, Chief Executive Officer Dušan Živković said. Weakness in the energy system is not an option, he underscored.

The recent blackout in entire Spain and Portugal and the one last year in the Balkans have imposed the topic of large energy storage facilities which would support the integration of renewables, CEO of EPS Dušan Živković said at Belgrade Energy Forum (BEF 2025). The company is committed to its own and the country’s goals for green energy and emission cuts, he asserted.

“We will work on that, of course, believing in these objectives, but without compromising energy security and the energy sovereignty of the state of Serbia. It was proven to be the only sustainable path and that if we don’t follow it, it can result in situations that are not a good message toward consumers, and they are not a good message toward investors either. Weakness in the energy system is certainly not an option”, Živković stated.

In its Integrated National Energy and Climate Plan (INECP or NECP), Serbia is targeting for 2030 a 45.2% share of renewable energy sources in electricity production and a decrease of greenhouse gases by 40.3% from the 1990 level.

Decarbonization is not easy without serious storage

Among its other activities, EPS is working on its small green energy projects on open cast coal mines, while the strategic partner, a consortium of UGT Renewables (UGTR) and Hyundai Engineering, is tasked with building a group of solar power plants of 1 GW in combined connection capacity alongside 200 MW of battery energy storage, and transfer them to Serbia’s government-controlled power utility, Živković noted. But the process of decarbonization with necessary renewable energy capacity won’t be easy “without serious storage,” he stressed.

Serbia hosts fossil fuel power plants of 4 GW in total

Big energy storage projects are financially challenging, only marginally cost effective, and they are not easy to build, EPS’s head claims. They are necessary to be able to draw enough baseload energy, and in Serbia they need to contribute replacing a large fossil fuel capacity – currently it amounts to 4 GW, Živković said.

Pumped storage hydropower project Bistrica, existing facility Bajina Bašta enable comfort for signing PPAs

EPS primarily focuses on the Bistrica pumped storage hydropower project and the possibility to develop the one for Đerdap 3, he added. That way conditions would be created for the facilities to provide new services in the market, so “the region feels safer, too,” Živković underscored.

Counting on Bistrica and the existing pumped storage hydropower plant, Bajina Bašta, EPS is in “a comfortable zone” for signing power purchase agreements (PPA) with companies for their green power plants, Živković explained. Bajina Bašta is undergoing the second half of reconstruction works.

Turning back to the April 28 collapse of the Iberian electricity system, Živković pointed to the adverse interest of private investors – get profit in the short term – and companies responsible for energy security. In his view, it is necessary to act “more intergenerationally responsibly” and very important to find balance in relation to profits.

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May 16, 2025
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BiH laying groundwork for battery energy storage systems

Bosnia and Herzegovina is set to have its first battery energy storage systems installed in the transmission network, which will provide auxiliary services.

The State Electricity Regulatory Commission is drafting a decision to allow battery energy storage systems (BESS) to offer secondary frequency regulation, Mirza Kušljugić, a member of the Board of the Regional Center for Sustainable Energy Transition (RESET) from BiH, said at Belgrade Energy Forum 2025 (BEF 2025).

Since such a decision does not require a lengthy regulatory procedure, and the balancing market is already regulated, batteries could be installed very soon, he noted.

“I anticipate that private investors will take the lead in this initiative,” Kušljugić added.

He stressed the importance of experimenting with new technologies, noting that batteries represent a technology that can fundamentally transform the energy paradigm.

To be economically viable, batteries must serve multiple functions

The cost of batteries has significantly decreased in recent years. For instance, prices fell by 40% last year and have decreased by an additional 5% so far this year.

According to Kušljugić, batteries should not be limited to providing arbitrage but should also perform additional roles.

“Batteries come in various sizes – small, medium, and large – each with specific functions. They can regulate voltage or enable a black start, especially when equipped with new grid-forming inverters. This is a disruptive technology. It doesn’t matter whether it is installed on the transmission grid, the distribution grid, or behind the meter,” noted Kušljugić, who moderated the BEF panel titled Energy revolution underway – uniting efforts to deliver green, intelligent and sustainable energy solutions.

He added that batteries in the transmission system need to perform two or more functions, including frequency regulation.

Behind-the-meter batteries are also on the way

Historically, secondary regulation in BiH has been provided by any entity capable of offering flexibility, typically through tenders. So far, the service has mostly been provided by hydropower plants. However, due to lower nighttime prices, their operators were not interested in continuing to supply the service, leading to a shortage of secondary regulation. Batteries now have the potential to fill this gap.

Kušljugić believes that batteries installed behind electricity meters will soon become a reality in BiH as well. Currently, there are 300 to 350 MW of solar power capacities installed on the roofs of business premises, but their owners cannot feed excess electricity into the grid. It is only a matter of time before battery prices decrease enough to facilitate their installation, he underlined.

RESET, which advocates for citizen energy and prosumers, suggests that all solar installations should now be equipped with hybrid inverters, making them ready for future battery integration.

This approach is essential for the distribution grid to be ready to integrate excess electricity, Kušljugić concluded.

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May 16, 2025
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North Macedonia adopts Law on Energy

With a majority of votes, 62 out of 120, the Assembly of North Macedonia adopted the Law on Energy. The government’s representatives say it is systemic, comprehensive, and reform-oriented legislation laying the foundation for the country’s new energy policy. The act aligns the country’s legal framework with the European Union.

The new Law on Energy will bring numerous benefits to the country and its energy future, according to the Government of North Macedonia. They include a liberalized, transparent and competitive electricity market ensuring fairer prices and more choice for consumers, the introduction of smart meters for more accurate consumption measurement, and daily insight for consumers into their electricity usage.

The law is compatible with the reform agenda for the Western Balkans and with EU directives. Its pillars are:

  • A significant increase in the share of renewable energy sources in final consumption;
  • Greater energy efficiency and reduction of losses;
  • An open energy market in which citizens become active participants – producers, sellers, and members of energy communities.

The law supports new concepts such as citizen energy communities and demand-side management models, increased market liquidity, and broader access to energy sources for the economy, along with equal investment opportunities.

It addresses infrastructure stability through investments in storage systems and their digitalization, as well as providing a stable, transparent, and predictable framework for domestic and foreign investors. The law strengthens the capacities of regulators and operators, creates conditions for greater integration with regional and European energy networks, and enables new investments in solar, wind and other renewable sources, district heating, gasification, storage and digitalized grid infrastructure.

Božinovska: New law paving way for energy sovereignty for Macedonia

Minister of Energy, Mining and Mineral Resources Sanja Božinovska said in parliament ahead of the vote that the Law on Energy is the foundation of the national transformation toward a clean, sustainable and fair energy future.

„This is a law that creates opportunities but also demands responsibility. Energy is not just the engine of the economy; it is the basis for a quality life. With this law, we are opening the door to an energy sovereign, green and European Macedonia. This law is more than a normative act – it is a signpost for the future. A chance we must not miss,” she said.

Transparent, predictable investment framework

The law includes provisions for protecting vulnerable groups, supporting the fight against energy poverty and ensuring fair access to energy for all.

According to the ministry, the law provides a stable, transparent and predictable framework for domestic and foreign investors.

All EU energy directives have been implemented, said President of the Energy, Water Services and Municipal Waste Management Services Regulatory Commission (ERC or RKE) Marko Bislimoski. Of note, yesterday he spoke at the Belgrade Energy Forum – BEF 2025, organized by Balkan Green Energy News.

The drafting process involved institutions, experts, the business community, operators and the national regulator. A total of 61 amendments were adopted.

Unlike the ruling majority, the Left (Levica), an opposition party, claimed the Law on Energy does not protect consumers or national interests. Out of 11 amendments that it submitted, only four were adopted. They include provisions aimed at protecting consumers from unrealistically high electricity bills.

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May 16, 2025
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Consortium completing spatial plan for solar-BESS strategic partnership in Serbia

Representatives of Hyundai Engineering and UGT Renewables, the companies developing a solar power project in Serbia of 1.2 GW in total, and with batteries, said the strategic partnership is a step toward expansion in the surrounding region. Spatial planning is nearly complete.

Following the signing of grid connection contracts last week, the Hyundai Engineering – UGT Renewables consortium is advancing the design and permitting procedures within its strategic partnership in Serbia.

The two companies are tasked with building a group of photovoltaic plants of 1.2 GW in total peak capacity and connections of 1 GW overall, alongside battery energy storage systems (BESS) with a combined 200 MW in operational power and a maximum 400 MWh in capacity.

Group of hybrid power plants to be transferred to EPS

In a keynote speech at Belgrade Energy Forum – BEF 2025, Vice President of Hyundai Engineering Seung-Won Lee revealed that the consortium is finalizing the special plans for special purpose areas. The facilities will be handed over to Serbia’s state-owned power utility Elektroprivreda Srbije (EPS), he noted.

The representative of the South Korea–based company added that the PV plants would generate 1.5 TWh per year and offset more than one million tons of carbon dioxide emissions. It is one of the largest renewable energy projects in Europe and a cornerstone for Hyundai Engineering, Lee pointed out.

UGT Renewables has project pipeline of 20 GW

Global Executive Advisor of UGT Renewables Chan-Woo Park said it is the largest renewable energy developer, internationally, in the United States. Its portfolio of companies is operating on four continents, he added. The regions include Southern Africa, the Middle East and Latin America, Park underscored.

The solar power and energy infrastructure projects under development account for 20 GW, UGT’s representative asserted.

 

It has established partnerships worth over USD 30 billion altogether, with Hyundai Engineering and other companies including Nextracker, Shoals Technologies, Hitachi Energy and Tesla Energy, Park stressed.

According to the update, the strategic partnership in Serbia is the beginning of the consortium’s regional expansion in the surrounding region.

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May 16, 2025
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Investors seek to install 5.5 GW of renewables in Montenegro – minister

Montenegro has received applications for building solar power plants and wind farms with a total capacity of 5.5 GW, Admir Šahmanović, the Minister of Energy and Mining, said at Belgrade Energy Forum 2025.

Montenegrin Minister of Energy and Mining Admir Šahmanović said the country has made significant progress in shaping its regulatory framework.

Montenegro has passed new laws on energy and renewable energy sources, while a draft law on the exchange of electricity and natural gas has been prepared.

“We are currently drafting a national energy and climate plan, which will be finalized by the end of next month,” Šahmanović stressed.

Montenegro currently has about 1,000 MW of renewable energy capacity

He also recalled that the government is preparing renewable energy auctions in collaboration with the European Bank for Reconstruction and Development (EBRD). The minister expects these auctions will significantly boost investments in renewables.

According to Šahmanović, the country has made considerable efforts to improve the investment climate.

“As a result, we have received 45 applications for the construction of renewable power plants with a combined capacity of 5.5 GW. For comparison, the country’s current capacity is slightly over 1 GW, which demonstrates our success,” he explained.

A memorandum on market coupling with Italy would be signed very soon

He said that a memorandum on market coupling with Italy would be signed next month. “We will also discuss the installation of another subsea cable for electricity transmission between Montenegro and Italy,” Šahmanović noted.

Montenegro plans to couple its day-ahead electricity market with Italy, linking it to the single European market. It previously considered two options for its first market coupling: with Serbia and with Albania, Kosovo*, North Macedonia, and Greece.

The third Belgrade Energy Forum 2025 (BEF 2025), started today welcoming four hundred participants from more than 30 countries from the region, Europe and beyond. The two-day conference is organized by Balkan Green Energy News.

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May 16, 2025
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Serbia to soon finish study on use of nuclear energy – minister

The preliminary study on the use of nuclear energy in Serbia should be completed by the end of the second quarter, according to Dubravka Đedović Handanović, the Minister of Mining and Energy.

A preliminary technical study for considering the peaceful use of nuclear energy is being prepared by French state-owned energy utility EDF and engineering company Egis Industries. The two companies won a tender organized by the Ministry of Mining and Energy.

Minister Dubravka Đedović Handanović told public broadcaster RTS that the study focuses on three aspects. The first one is developing a roadmap for the implementation of 19 institutional and infrastructural steps for a potential nuclear program.

Experts from Serbia’s TSO EMS are involved in the preparation of the study

The roadmap, in her words, must be in line with the guidelines of the International Atomic Energy Agency (IAEA).

The second topic is an analysis of available technologies, including conventional nuclear power plants and small modular reactors (SMRs), and the third is to consider how a nuclear plant, depending on capacity, could be integrated into the country’s energy system.

Experts from Serbia’s transmission system operator Elektromreža Srbije are providing help in the third part, she noted.

Serbia would need to choose a partner for the development of a nuclear power project

According to Đedović Handanović, SMRs are a technology under development for cheaper facilities, which require less time to be built than conventional reactors.

“It is up to us to look at the advantages and disadvantages of both technologies, of which one is under development and the other is proven in the market, and say what we want to go with. Of course, if all the preconditions are met. Also, finally, with whom, as all the main developers of the technologies are certain companies from different parts of the world,” she stressed.

Baseload energy is crucial for the stability of the energy system

The minister pointed out that the IAEA prescribes clear steps each country must fulfill if it is considering the development of a nuclear program. It means no country can do anything on its own, she added.

“All those institutional and infrastructural prerequisites have to be checked, approved, verified, and ultimately monitored by the IAEA,” Đedović Handanović underlined.

Speaking about the long-term strategy, she recalled that baseload energy is crucial to secure the stability of the energy system. In Serbia it is currently provided from coal and natural gas, while nuclear plants can also play the role.

Natural gas, in her words, will serve as a transitional fuel for baseload energy for another 20-30 years, so it is necessary to find a long-term solution. Nuclear energy is one of the options, but it requires a lot of experience, time, and investment, Đedović Handanović noted.

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