The proposed amendments to the Energy Law include dedicated chapters for the promotion of renewables, however, full compliance with all the requirements of Directives 2001/77/EC has to be ensured mostly in areas like authorisation procedures and grid system issues. Except the amendments to the Energy Law which are in discussion at the Ministry level, the Implementation Program (2007 – 2012) of the Energy Development Strategy of Serbia is also planned to be revised. The Program will be enforced as Government decree. The national indicative targets regarding electricity produced from renewables and biofuels are envisaged to be set through the Amendments to the Implementation Program in January 2009. Based on preliminary assessment, the indicative target for electricity produced from renewable sources could be set at 30% for 2010.

The development of the legislative and regulatory framework for promotion of renewables in Serbia received consultancy support financed by EAR. The support scheme based on feed-in tariffs, the rules for the privileged producers as well as the market model for integration of renewable energy, including framework agreements for power purchase are envisaged to be approved through three Governmental Decrees. The designation of the issuing body for the guarantee of origin will be implemented in 2009.
An Energy Efficiency and Renewable Energy Fund will be established based on $15m contribution from the World Bank.

In 2007, the percentage of electricity produced from renewables, mostly in large hydro power plants, represented about 26% in total consumption according to UCTE data. There is significant hydro potential to be developed in large hydro power plants, with a technical potential of about 7 TWh/y located on Morava, Drina, Lim and Danube rivers plus 5.2 TWh/y technical potential to be developed in medium-sized hydro power plants (>10 MW). The potential for small hydro power plants is about 1.8 TWh/y in more than 800 sites. Biomass has the second potential for utilisation in generating electricity, mainly in cogeneration power plants. Potential of solar, wind and geothermal is currently under detailed assessment.

Besides the Amendments to the Energy Law – which are in the phase of development - the Realization Program (2007 – 2012) of the Development Strategy of Energy of Serbia is planned to be also revised. Among others, the targets regarding biofuels are envisaged to be decided on within the Amendments to the Realization Program in January 2009.