Serbia: Energy minister announces energy investments without dams, PPP models

Published on 14. January 2014., News Serbia Energy

Two major investments are under construction, Bistrica hydro power plant and thermal power plant Stavalj. There are no more state guarantees for energy investments, so Ministry of Energy stands for concessions and public-private partnerships. They promise there will not be legal and administrative barriers to investments.

Last year, Serbia has started construction of the gas pipeline “South Stream “, the first wind park in Plandiste and preparations for the construction of thermal power plant in Kostolac. In addition to the reforms and the implementation of European standards in the energy sector, this year should be invested. The Ministry of Energy expects the concessionaire and private – public partnerships – and they promise there will not be legal and administrative barriers to investments.

Water and coal are the main resources. Two major investments are under construction. The first is hydropower plant Bistrica, for which the Parliament has already ratified the international agreement with Canada. The agreement on construction is expected in the spring.

“There is a thermal power plant Stavalj with associated ore field and power lines. This is something we are discussing now with Czech partner. Another partner from Bulgaria has appeared and it’s on the table “, said Minister of Energy, Zorana Mihajlovic.

After the first public call, investors have come to build 212 small hydropower plants in 17 cities and municipalities. The second call for another 143 locations in 20 local governments is underway.

Thus, only the undeveloped area of Prijepolje will get 20 mini hydro power plants, and they have another ten unused location.

“The local population and the local economy will be engaged, which is important for us”, says Emir Hasimbegovic, Mayor of Prijepolje.

There are no more state guarantees for energy investments, so Ministry of Energy stands for concessions and public-private partnerships.

“All those investments that are related with, for example, heating plants in Serbia, should go through a public- private partnership”, says  Minister of Energy .

According to her, this is what can make a profit to the local government, district heating and investors. “Relationships are the same, and the large-scale projects, such as the Bistrica and Djerdap 3, on which it has been only discussed”, says Mihajlovic.

This year, a lot is expected from energy efficiency. The number of jobs is announced that will, primarily for the citizens, allow conserving energy.

Source; Serbia Energy