Serbia & SEE: Power balance and perspective of south east Europe market , The need for construction of new capacities

23. April 2014. / News Serbia Energy

Whole region is import-oriented. Serbia can use its central and strategically important position only with appropriate action and consideration of market development. Serbia Energy analysis makes reference to the regional energy strategy and adopted the priority energy projects of generating and transmission capacities, a review of the current situation and plans for the allocation of cross-border transmission capacity, as well as existing and planned electricity stock exchange.

According to the Association of European transmission system operators (ENTSO-E) SEE region is characterized by a total of 80.6 GW of installed capacity, of which 44.1 GW is thermal, 23.4 GW of hydro, 5.9 GW of nuclear and 7.1GW of renewable energy sources. With a display of installed capacities and peak loads for the region and country, in Serbia there are 10 percent of total installed capacity in the region, or 12 percent of total thermal capacities and the same number of installed hydro capacities. Within the electricity production and consumption for 2013th Serbia participates in the regional income with 14 percent of total consumption and 16 percent of the total production, of which the percentage of hydro generation is 22 percent.

From the representation of consumption and production by power plants types in all SEE countries it can be concluded that the majority of average production (76 percent) is from thermal (60 percent) and nuclear (16 percent) power plants. Hydro generation is highly variable and dependent on hydrological conditions, and in recent years there has been a significant trend of increasing production from renewable sources.

The presentation of the annual balance reveals that Bulgaria, Romania and Bosnia and Herzegovina are net exporters, while other countries constantly import electricity, most Hungary, Greece and Croatia. Serbia, including Kosovo and Metohija is more or less self-balanced, or even it has certain mostly spring summer surpluses, as the territory of Kosovo and Metohija is the bulk importer. Otherwise, the whole region is import-oriented, emphasizing the need to build new capacity, with the ten-year average of 8.4 TWh and a maximum import of 16.7 TWh in a very dry year 2012th.

In Southeast Europe Serbia has centrally and strategically important position, but this comparative advantage can be used only with timely and appropriate action of all (electrical) energy operators and actors in the country, with a complete overview of development directions of the regional market.

New business conditions of energy companies, accepted obligations through the Energy Community which must be met and unavoidable regional cooperation aspect also impose possible directions of development of the power sector in Serbia. Since its founding, or separation from the former “Serbia Power Utility Company” in 2005th, the Public Enterprise “Elektromreza Srbije” followed trends and commitments to the EC. The introduction of common auction at half borders, plans for further development, as well as re- actualized plan for the establishment of stock exchanges provide a good basis to impose EMS as a leader in the development of the stock exchange market in the Balkans, extending its services to neighboring systems. EMS Potential stock market could grow in the regional one. By its results EPS proved that it can be an equal participant and a serious competitor in the market. However, without new urgent investment in new facilities and the wildcard entities in cases of poor hydrology and/or increased consumption, EPS will not be able to use its comparative advantages, so it should be imperative in the future.

In addition to the Energy Strategy until 2025th and the new Energy Law, it is necessary to continue work on by-laws drafts, primarily related to the complete market opening and facilitation of investment opportunities. Improving the investment climate through political stability, appropriate legislation and further promotion of public-private partnerships in the power sector investment will result in essential attracting of foreign and / or domestic private capital for investment, contribute to the engagement of the local economy and improve the economic situation of the entire country.

Source; Serbia Energy

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