Renewable energy

State of compliance

 

  • National Renewable Energy Action Plan

    National Renewable Energy Action Plan (NREAP) and progress towards 27% target in 2020

    Serbia is in severe delay with respect to the implementation of the NREAP and towards reaching the 27% renewable energy target in 2020. The 2016 energy statistics revealed that Serbia has reached only 20,9%, which is well below the 23,8% indicative trajectory. The country is at risk of not meeting the 27% renewable energy target in 2020 given the minimal deployment of renewables so far and the increase of gross final energy consumption. Serbia might consider revisiting its NREAP as well as putting in place new measures in order to ensure it is on track to meet the 2020 renewable energy target.

    By January 2019, it had submitted the Secretariat three progress reports on the country's promotion and use of energy from renewable energy. 

  • Quality of the support schemes

    Quality of the support schemes

    The legislation and the current support schemes do not take into the account the requirements of the State Aid Guidelines for Environmental Protection and Energy 2014 - 2020 (EEAG), especially rules on granting the aid in a competitive procedure and in the form of a premium on top of the price of electricity sold directly on the market. Proposed amendments to the legal and regulatory framework have to be finalised and adopted in the upcoming period to ensure compliance with the renewable energy acquis.

     

    Cooperation mechanisms

    The possibility to enter into cooperation mechanisms is partially transposed by the new Energy Law. In case Serbia plans to make use of the cooperation mechanisms to reach the 2020 target, the Government, upon a proposal of the ministry, shall adopt the conditions for implementation of cooperation mechanisms with one or more Contracting Parties as set out in Decision 2012/04/MC-EnC of the Ministerial Council.

    In case of cooperation with EU Member States using statistical transfers or joint support schemes, Serbia must ensure compliance with Articles 8, 9 and 13 of Decision 2012/04/MC-EnC. In case of joint projects on renewable energy, the conditions set in Articles 7, 8, 9 and 10 of Directive 2009/28/EC as adapted by Decision 2012/04/MC-EnC of the Ministerial Council have to be transposed and implemented.

  • Integration to the grids

    Integration to the grids

    Currently, the Energy Law does not include guaranteed access for electricity or gas produced from renewable sources to enable the transition to a support scheme based on a feed-in premium to be paid on top of the price of electricity or gas sold directly on the market. It only contains priority dispatch for renewables under the condition that security of supply or operation of the distribution or transmission system will not be jeopardised. If priority dispatch is rejected on these grounds, the distribution and transmission system operators must inform the regulator about the measures needed to prevent the limitation of electricity from renewable sources. Compensation in case of curtailments is envisaged in the power purchase agreement template adopted by a 2016 government decree.

    The methodologies for determining connection costs to the transmission and distribution systems were approved by the regulator and implemented. Detailed information about the procedures is available on the operators’ websites. However, in practice, the procedures for connection to the transmission and distribution grids are the greatest barriers for renewable energy developers after the permitting and authorisation procedures. This is due mostly due to a rather conservative approach of the operators in accepting new volatile generation connected to the grids and concerns about impact on system stability.

    There are no rules on renewable energy self-consumption for the distributed generation to encourage and enable customers to become prosumers.

  • Administrative procedures

    Administrative procedures

    The investor guides for various renewable energy technologies have been updated. However, the requirements for streamlining, simplification and coordination of procedures for authorization, licensing and network connections and introduction of one-stop shops as required by the revised Law on Construction and Planning are yet to be implemented in practice. No significant progress has been registered in the reporting period. Serbia must ensure full compliance with Article 13 of Directive 2009/28/EC.


    Guarantees of origin

    Based on the Rules on Issuing, Transfer and Cancellation of Guarantees of Origin, the transmission system operator EMS, as the issuing body for guarantees of origin, has taken steps towards the implementation of an accurate, reliable and fraud-resistant system in accordance with European practice. Based on a software solution compliant with European practice, the registry for guarantees of origin became operational and Serbia has applied for membership in the European association of issuing bodies of guarantees of origin. Full implementation and disclosure of the energy mix is expected upon the granted membership.


    Renewable energy in heating and cooling

    Investment support for biomass heating power plants has been introduced, nonetheless, the framework for promotion of heating and cooling from renewable sources is not yet complete. A project targeting the conversion of several district heating plants from fossil fuels to biomass is being carried out. In addition, the first Serbian biomass logistics and trading center became active. Nevertheless, increasing the efficiency of wood biomass use for heating by residential customers requires further support. Serbia needs to ensure full compliance and continue the promotion of heating and cooling from renewable sources in the most cost-effective and sustainable way.

  • Renewable energy in transport

    Renewable energy in transport

    Serbia is completely non-compliant with provisions of Directive 2009/28/EC in the transport sector, none of the Articles 17 to 21 have been transposed, only the NREAP includes the 10% renewables target in transport by 2020. Despite being an obligation under the 2014 Energy Law, the sustainability criteria for biofuels have not been adopted so far. Nevertheless, the share of renewable energy in transport reached 1,2% in 2017 due to electricity used in public transport.  

    An inter-sectoral working group has started to work on developing a regulation on biofuels. The first draft is expected in autumn 2018.