Croatia-Serbia: RES electricity trading to boost economy

23. July 2014. / SEE Energy News

The potentials for trading in renewable energy in Croatia, Bosnia and Herzegovina, Albania, Serbia, Kosovo, the former Yugoslav Republic of Macedonia and Montenegro are being investigated as part of the project named BETTER, which is conducted through the program Intelligent Energy Europe (IEE), in which UNDP Croatia also takes part.

The project has started in 2012th and lasts three years. Preliminary results of the project, which were presented in July at a regional workshop in Belgrade show significant potential that the analyzed countries have in store of renewable energy in terms of employment, economic stimulus and a more positive impact on the environment compared to existing energy sources. Albania and Serbia have recognized the potential of renewable energy for export to other countries and embed them in their action plans for renewable energy.

Compared with the “business as usual” scenario of renewable energy development (excluding trading), the observed states could create at least two times more jobs by tradingin renewable energy (this number is even higher with a high percentage of domestic components in the production, installation and maintenance) and three times higher economic stimulation throughthe investment. For example, the export of renewable energy would mean for Croatia up to six thousand new jobs each year, with investment up to 3 billion EUR!

Cooperation between the two countries through trading in renewable energy is primarily designed thatstates with lack of the renewable energy potential meet their targets at more cost-effective way under the EU climate energy policy, in terms of the share of renewable energy until 2020th.In case of failure of set goals, the state will pay the penalty in the amount of 150 MEUR per year for every “missed” percentage, which according to the current trends of development in these countries is not excluded scenario. Option for these countries to meettheir targets about the share of renewable energy could be a tradingin renewable energy.

Possible models of tradingin renewable energy are represented through the EU Directive on the promotion of renewable energy use (Directive 2009/28/EC) in articles 6, 7 and 9. Statistical energy transfer is performed so that the generated surplus of one country would be attributed to another country in 2020thwithout physical transfer, while joint ventures involve the physical electricitytransfer.The greatest potential for trading in renewable energy in the region of the Western Balkans lies precisely in joint projects between the countries of the Western Balkans and the EU countries, which are in deficit with renewable energy. Based on this, Serbia and Italy signed a memorandum on cooperation in the field of trading in renewable energystill in 2009th, but due to the revised policy and the economic situation, the project is currently stalled, UNDPpublished.

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