Serbia: Profit decline in Electric Power Industry, no interest in building new power plants except RES

, News Serbia Energy

There is a profit decline in electric power industry, gas-fired power plants are closing, and, except for the renewable energy resources, there is no interest in building new power plants – said Ljubo Maćić, Chairman of the Energy Agency .

– The fact that we are selling electricity which is by 30 or 40 percent cheaper is a big burden for us – Aleksandar Surla, the EPS executive director said at the Kopaonik Business Forum.

He emphasized that, in Serbia, the electricity price must be a market one, because it is only this price that is relevant, and not the economic price, because this is the price that is “made up on paper”. The companies operating on the oil market are also facing similar problems.

– The new oil price will cut down the profit of NIS to 26 billion RSD – said Srđan Bošnjaković, deputy general manager of NIS.

Nikola Petrović, general manager of the Power Grids of Serbia pointed out that Serbia has the best position in Europe for electricity export, because we are bordered by eight countries.

Ljubo Maćić, Chairman of the Energy Agency Council, explained that, owing to the narrowing of market space and the expansion of renewable energy resources, there was a massive drop in wholesale prices. According to him, in Serbia, regulated electricity prices are below the market ones, which is why energy companies can increase profit only by lowering costs.

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