Serbia, EPS looking to decarbonize its electricity generation portfolio

, News Serbia Energy

Serbian state-owned power utility EPS has launched a tender for the development of a study on investments in decarbonization of the company’s electricity generation portfolio.

According to the tender documentation, over 55 % of the emission of greenhouse gases in Serbia happens in the sectors of electricity generation, heating and fuel and refineries. Within said sectors, the biggest emitter is the sector for the production of electricity. Also, around 70 % of electricity in Serbia is produced at thermal power plants which use local lignite and are operated by EPS.

Therefore, the process of energy transition of Serbia on its way to decarbonization will mostly reflect on the operations of EPS, which will be obliged to implement a successive reduction of the participation of local lignite, so the company has to optimize the investments in new and existing electricity generation facilities.

The comprehensive study should give the optimal solutions for the use of lignite in the long term, as lignite is still a strategic resource given that it secures Serbia’s energy independence, for the production of electricity in the existing hydropower plants and an increase in the share of renewable energy sources.

The first task entails an analysis of the regional wholesale electricity market and the development of a market model of Serbia’ electricity market and the countries of southeastern Europe, including the projections of consumption and wholesale prices, the dynamics of withdrawing the production capacities and the commissioning of new ones.

The second task is the selection of future investments and evaluation of EPS’ production portfolio through an analysis of operations in the conditions of restrictions according to the directives from the EU Green Deal.

In the EU member states, the main mechanism that contributes to the realization of the goals of the energy transition/decarbonization is the EU Emission Trading System (EU ETS). This is why it is especially necessary to prepare an analysis of the impact of the implementation of the Carbon Border Adjustment Mechanism (CBAM) on the operations of EPS, an analysis of the impact of the implementation of the EU ETS on the operations of EPS, as well as the impact of the introduction of so-called carbon tax.

The deadline for bids submission is 3 October.