Serbia will not deviate from any gas route that should pass through its territory, so that it is not only Russian gas, the Minister of Mining and Energy of Serbia, Zorana Mihajlovic, told the Voice of America.
Mihajovic denied that he was an “American man”, as well as that Moscow was behind the director of Srbijagas, Dusan Bajatovic, whom she assessed as “a disgrace for everyone”. She also explained her attitude towards the Balkan Stream gas pipeline, at the opening of which she did not appear, and warned that Serbia would “throw away one highway a year” in 2050 if it did not stop using lignite in thermal power plants.
Voice of America: You said that on January 1st, when the Balkan Stream gas pipeline opened, you were on your way. Couldn’t you postpone the trip, since this is such an important project in your department?
Mihajlovic: The most important thing is that the Balkan Stream is over in that constructive part, and everything I do, I do in agreement with the president, so I asked him not to be there at 6 am on January 1, which does not mean that I have not been there for several months. As far as I am at the head of the ministry, I did everything to pass the best possible. It is much more important that it is constructively completed, that the compressor stations are completed and that in 2021 we will have a fully operational Balkan flow.
Voice of America: Does that mean it’s not operational now?
Mihajlovic: Yes, but not in the sense that the pressure is as it should be and that all compressor stations are finished, but everyone has already said that, it is no secret that there are many more things that need to be completed.
Voice of America: I ask you because there is a narrative in public that you are an “American man” and when you do not show up at the opening of the gas pipeline, and there is a former SPS minister, then part of the public says “she did not come because she is an American man”.
Mihajlovic: That story about the “American man” is just funny because I worked in infrastructure for the past six years, and I worked with Russian and American companies, not to mention others, Turkish, Azerbaijani, etc. The same applies here in the energy sector. I think that a story was created there 6-7 years ago, to which I did not react, because I thought it was nonsense, and I should have reacted. You don’t just become a Russian or an American man. You work for your country, you have an agenda called Government policy, you realize that and that is the most important thing.
“Bajatovic embarrasses everyone”
Voice of America: You have been criticizing the director of Srbijagas, Dusan Bajatovic, for two terms now, it is no secret. All these years you have been trying to start his shift and you can’t. You once said that some directors would no longer be allowed to be guarded by “the party or Russia.” Is Bajatovic being guarded by Russia?
Mihajlovic: Russia is not behind the director of Srbijagas. And all those stories about big conspiracies, as who knows who is behind a director, that is not true. It is a question of our internal organization, whether we want to have a profitable Srbijagas or whether we will let it work the way it does. In general, I think that the director of Srbijagas is a disgrace for everyone, he is a disgrace for Russia if we put it that way, but it is also a disgrace for our financial sector.
Voice of America: Is Dusan Bajatovic then “guarded” by the Government of Serbia, the President of Serbia, for the sake of relations with Moscow?
Mihajlovic: No. Dusan Bajatovic is currently the director of Srbijagas, he has a decision to implement the decision of the Government on the division of activities, it is working for now. The working group of the Government has been formed, it is moving with the division of transport and distribution of gas, if that does not go according to the dynamics that is exactly written in the decision of the Government, we will propose the dismissal of the director to the personnel commission.
Voice of America: We now import gas only from Russia. What position does that put us in, considering that gas is not only an energy source, but also a means of influence?
Mihajlovic: Indeed, gas is becoming a fuel both politically and economically in the 21st century. Serbia has diversified its paths, and that is an important and good step. We did not diversify suppliers. What should happen in the coming period, let’s not give up talking in two directions: one is where to be LNG (liquefied natural gas) terminals, because there is no reason not to have them here, and the other is the beginning works and completion of the interconnection with other countries, and the first is the interconnection between Nis and Dimitrovgrad. And why is it important? One gas pipeline that has been talked about a lot, and a lot of agreements have been made, is the Eastern Mediterranean gas pipeline. And that is the gas that should come practically from Israel to Dimitrovgrad, and then Nis-Dimitrovgrad is the connection I’m talking about.
At the technical level, there will be talks tomorrow with people from the Israeli ministry, and ministries from the region, and that is something we should not and will not agree with… What is important is that gas stability, political stability. I think that Serbia has really understood that we will try in all possible ways to be that transit corridor, we will not deviate from any route that should pass through Serbia, so that it is not just Russian gas. And I think it’s clear to everyone now, that there’s no going back.
Voice of America: When could the diversification of energy supply happen, which Serbia agreed to by signing the document from Washington?
Mihajlovic: Let’s be completely specific: Nis-Dimitrovgrad gas interconnection, I think that a tender for the construction of that gas pipeline will be announced next week, a tender has already been announced for the company that will supervise the construction of that connection. What also needs to be done this year is the project technical documentation for interconnections with other countries. As in transport, so in energy and gas, we must be a transit corridor. Documentation for connections with Romania, BiH, Croatia, Montenegro will be made. Documentation will be made for the construction of a gas pipeline down to Pristina, as well as for the construction of a gas pipeline to connect with Montenegro. This gives Serbia the opportunity to accept gas that will be from another supplier.
Voice of America: Why is electricity becoming more expensive now in the middle of the heating season, on February 1st? What has become more expensive, so the price has to change now?
Mihajlovic: Electricity is getting more expensive once a year, there are certain corrections related to the newly installed capacities of renewable energy sources. Now, it jumped to an average account of 25 euros by some 1.3 euros. I am not one of those ministers who will say that Serbia has the lowest price of electricity. That is true, but what I think is that when we talk about electricity, a much more important thing for every citizen is the quality of that electricity. It’s not just a question of whether I have electricity, but whether I’m running out for five seconds, a minute, two. And the problem of investing in the Electric Power Industry of Serbia is much bigger than anything else. The level of investment in EPS is at the level of depreciation costs or below. This means that, if they figuratively planned to invest one 8 thousand euros, they invested 60 percent. That must change. But, that has nothing to do with the price of electricity, but work within the company.
Voice of America: Small hydropower plants are causing a lot of controversy in our country. If the electricity they produce is more expensive, if we as citizens are already paying for it through the fee for privileged producers on electricity bills, and if there is a risk of endangering the environment, why are you advocating for that?
Mihajlovic: Renewable energy sources include the subordination of SHPPs and solar and wind power plants and biogas power plants. So no one insists on SHPPs. They have made their contribution in many countries in Europe, in some countries they are 70% in electricity production. Why in our country it was realized by putting a pipe in the river, I am not for that. I am in favor of ecology and energy being together and agreeing on what is in interest and whether a SHPP can be built or not. SHPP will not save the energy of Serbia and will not bring us energy security, we must take care of the environment.
Voice of America: By 2050, Serbia must stop producing electricity on the lowest quality coal. But that way, about 70 percent of the electricity is currently obtained. Is that deadline realistic, where will we get electricity from and how much will it cost us?
Mihajlovic: Nothing can be closed immediately. Lignite is the lowest quality coal and we spend all the money to dig up that lignite and put it in thermal power plants. That is why everything concerning the desulphurization process is now being accelerated to the maximum, in order to reduce those emissions. But, the deadline of 30 years is completely realistic so that we can do what our replacement capacities will be. Serbia is moving in three directions: we are turning to building medium and large hydropower plants because they will give us what thermal power plants now give us, then energy efficiency – we can provide 15 to 20 percent of the energy we throw away, and a small percentage from renewable sources energy, with an emphasis on solar and wind power plants. It shouldn’t be more expensive. Thermoenergy is currently more expensive for us. And we should know that if we do not do that by 2050, Serbia will give a minimum of one billion euros only on the carbon dioxide tax. So, we will throw away a billion euros, and that is one highway that we will throw away every year, Voice of Amerika reports.
