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Energy Sector Serbia

Energy is one of the largest sectors of the Serbian economy, accounting to some 10% of the Serbian GDP. The Serbian energy sector consists of oil and natural gas industry, coal mines, an electric power system, a decentralized municipal district heating system and industrial energy. Activities in the energy sector include the production of domestic primary energy, the importation of primary energy (mostly oil and natural gas), the production of electric power and thermal energy, the production and the secondary processing of coal and the transport and distribution of energy and energy products to energy consumers.

The vast majority of the Serbian energy infrastructure is state-owned and is operated by the public enterprises that were established by the state to manage the various domestic energy sectors. The Serbian energy infrastructure is generally old and outdated, often in a very bad condition due to more than 10 years of neglect, a lack of investment, and the severe damage it took during the NATO bombing in 1999. The repair process started in 2000 with the assistance of international funds. However, the process is far from being finished, and much of the existing infrastructure is awaiting modernization which will require significant investments by both the public and private sector.

Overview of power generation and energy sector, power plants, grid and distribution

The Serbian production of electric power includes power plants with a total power of 7,120 MW, including 8 lignite-operated thermal power plants (“TPPs”) with an installed power of 3,936 MW (two of these are located in Kosovo), 9 hydro power plants (“HPPs”) with a total installed power of 2,831 MW. In addition to this there are mazute and natural gas operated thermal power plants operated by district heating companies with an installed power of 353 MW. Almost the entire production of electricity is concentrated in the Public Enterprise Elektroprivreda Srbije” (“EPS”), which is currently the only producer of electricity in Serbia.

The Serbian power transmission system is consists of 9,500 km of power lines of 400, 220 and 110 kV and accompanying transformer stations, and is interconnected with all the neighbouring countries. The entire Serbian transmission system is operated by the Public Enterprise “Elektromreža Srbije” (“EMS”).

The distribution network consists of the low-voltage network that is located in all major consumer centres and is operated by EPS through its fully-owned subsidiaries for five regional centres including Belgrade, Novi Sad, Kragujevac, Kraljevo and Niš.

The consumption of electricity in Serbia is very high. According to the Energy Balance for 2009, the estimated consumption of electricity in Serbia for 2009 was to be 28,854 GWh. The high consumption of electricity is due to the fact that the majority of Serbian households use electricity for heating purposes. In addition, there is a very low level of energy efficiency and the price of electricity charged to the consumer is still not sufficient to satisfy the cost of its production. The average annual production of electricity is still for the most part sufficient to satisfy the national consumption, but certain quantities still have to be imported every year, usually during the winter when demand is at its highest.

Serbia Energy produces special market segment analysis on each industry part.

Special analysis could be provided on development projects, power plants and other power generation facilities, grid network, gas and oil industry, renewable and related industries – actors and stakeholders, experiences and examples of best practice in market development from both market entrance and export-distribution.

// More informations on subsectors, sector information overviews:
// Reports covering power generation sector in Serbia, briefs from 2010/2011: