Serbia: Energy Law changes open the door to the wind parks construction

Published on 26. December 2013., News Serbia Energy

After the public hearings completion on 8^th January, amendments to the Energy Law will be urgently sent for approval to the Parliament of Serbia. New provisions relating to renewable energy sources will allow investors who are willing to build a large production capacities, such as wind parks, to realize their investments in Serbia.

This was confirmed by Ljubomir Aksentijevic, Special Adviser to the Finance Ministry of Energy, Development and the Environment .He pointed out that foreign investors who want to build windmills are rightly dissatisfied because there are limitations in the existing legislation.

– When the incentive measures were enacted and deadlines for building renewable energy sources were determined, it was taken into account on how to prevent the energy permits resale. Now, however, all investors should be enabled to realize their investment. When it comes to those who want to build wind parks in Serbia for them will be particularly important that the phase construction of production facilities will be legally enabled to them. Every relief that should not be regulated by amending the Energy Law will be processed and sent to the Government of Serbia for adoption. On the other hand, all other exemptions will be included in amendments to the Energy Law. We are ready to be of maximum assistance to the investors and to adopt all those benefits that are present in the European Union legislation. However, we are not ready for discrimination and we do not want to accept any condition which is not in accordance with the European Union legislation – said Aksentijevic.

Aleksandar Savic, director of the Directorate for business with the Erste Bank public sector, said that the bank was a pioneer in Serbia when it comes to the projects financing in the field of renewable energy sources, and that after the inclusion of several other banks became leading in that area.

– We have started crediting the activities in the field of renewable energy sources immediately after the first feeding tariff determination in December 2009^th. Basically we have funded projects related to the construction of small hydro power plants. What should be emphasized is that the jobs in the field of renewable energy sources are cost-effective because the produced electricity is delivered and paid at the time; however In Serbia still there are not enough good projects which banks could support. When determining which projects in the RES field will support the banks follow the economic justification and risk factor – said Savic.

Maja Turkovic, an expert for electro-energetic systems and renewable energy sources economics stressed that green energy was expensive but it was valuable to know how much an alternative cost, which increased the RES importance.

– In this moment the construction of small and medium RES facilities is supported in Serbia. However, it is impossible to believe that it will be built 1.000 small plants with a capacity of one megawatt. Therefore, it is necessary to build large manufacturing facilities such as wind parks. There has not been built any facility yet, because of the great difficulties that investors face here. Therefore, changes in the energy law should ensure that these problems be eliminated. Serbia needs wind parks because they would provide insufficient electricity amounts during the winter when import is the largest and prices are the highest. In order to achieve this goal the barriers such as short period in which wind farms have to be built should be removed. The major projects realization in the field of renewable energy sources takes more time and more money, which includes the banks participation through loans – concluded Maja Turkovic.

Easy to partner

Dusan Zivkovic, Assistant Director of Serbia Power Utility Company said that the company paid great attention to the renewable energy sources development and strove to a greater number of kilowatts produced from green energy. “EPS formed a separate company that is independently funded. The field of renewable energy sources is profitable and partners for projects are easily found. Feeding tariffs are good incentive measures, but only in the short term. They cannot be a permanent solution when it comes to RES building and therefore for a long-term solution it needs to be work on creating a balance between mass production with one and the electricity price on the other side “, said Zivkovic.

Source; Serbia Energy