Serbia: RES investments and new energy law

Published on 11. March 2015., News Serbia Energy

The new energy law is very precise when it comes to the administrative procedures, thus creating the conditions for the investments in the power plants which use the renewable energy sources.

The particularly important solution is that the temporary status of a privileged producer can be acquired by all the investors, before acquiring the status of privileged electricity producer, by which the investment security is increased. It also allows the individuals to acquire the status of privileged electricity producer in the power plants with the installed capacity of 30 kilowatts.

Thus, the conditions will be made for greater investments in the smaller power plants. In the field of renewable energy sources, with respect to the obligation of reaching the binding share of renewable source of 27 % in gross final energy consumption in 2020, with the current 21.2%, the new Energy Law prescribes certain improvements of the procedures for that field, which provide the incentives of the investors.

The status of the producer from the renewable sources is introduced, which is precondition for all producers of the electricity using the renewable sources, to obtain the guarantee of origin. A model of contract on the purchase of the electricity has been introduced with a suspensive condition instead of the three previous contracts. An investor who plans to use the renewable sources for electricity production will have all the conditions and incentive measures defined during the trial stage, prior to the commencement of construction as well as after acquiring the status of the privileged producer.