Serbia, EPS is preparing for carbon taxes

, News Serbia Energy

Elektroprivreda Srbije has announced a tender for analysis in order to invest in the development and decarbonization of the production portfolio of that public company.

– In Serbia, more than 55% of greenhouse gas emissions are obtained from processes in the electricity production, heat production, fuel production and refineries sectors. Within the mentioned sectors, the largest emitter is the electricity production sector – it is stated in the document.

It is also recalled that about 70% of electricity in Serbia is produced in thermal power plants that use domestic lignite and are located within the JP EPS.

Therefore, the process of Serbia’s energy transition on the way to decarbonization will have the greatest impact on the business of JP EPS, which will be obliged to implement a successive reduction in the share of domestic lignite, so the company must optimize investments in new and existing production facilities.

Comprehensive analyzes that are the subject of this tender should provide long-term optimal solutions for the use of lignite, which, as stated, is still a strategic resource because it ensures the country’s power independence, then, for the production of electricity in thermal power plants, as well as for the production of electricity in existing HE and increasing the share of renewable energy sources.

The first task involves the analysis of the regional wholesale electricity market and, in connection with that, the formation of a market model of the electric power system of Serbia and the countries in the SEE region, in order to arrive at projections of consumption and wholesale prices, the dynamics of the withdrawal of production capacities and the launch of new

Task number 2 is the selection of future investments and the valorization of the production portfolio of EPS through the analysis of operations under the conditions of restrictions according to the EU Green Deal directives.

It is recalled that in the EU countries, the main mechanism that contributes to the achievement of energy transition/decarbonization goals is the European emissions trading system – “EU Emission Trading System” (system of carbon quotas).

That is why, as pointed out, it is particularly necessary to create an analysis of the impact of the application of the cross-border tax on exported electricity (Carbon Border Adjustment Mechanism – CBAM) on the business of EPS, an analysis of the impact of the application of the European emissions trading system on the business of EPS, as well as the impact carbon tax collection, writes eKapija.