Serbia: Power utility EPS cant invest in new power generation facilities, News Serbia Energy
Currently, the business operations of the power utility company EPS (Elektroprivreda Srbije) are not sustainable, so major investments by the EPS itself cannot be expected anytime soon.
The currently achievable goals for the EPS are to perform business operations without losses and to be able to repay from its business operations the existing and new loans for the revitalization of plants, to achieve the necessary environmental standards and to eliminate the consequences of the recent floods.
On the other hand, investments are needed to support the planned economic growth based on the production of tradable goods. Therefore, the necessary large investment projects within the energy sector should not be delayed. These are the projects which, during their implementation, directly and significantly influence the growth of the GDP and create the preconditions for the future dynamic economic growth.
Such investments should not wait for a sufficient improvement of the EPS business operations and they could be implemented relatively quickly through foreign or domestic private investments, for which it is necessary to improve the legislation and the work of the state administration. Price of electricity is also one of the key factors for EPS new power generation investments.