Serbia’s Parliament has received a draft law to confirm an Agreement securing a 100 million euro loan from the Italian financial institution Cassa Depositi E Prestiti. This loan, finalized on May 23, is aimed at providing liquidity support to Elektroprivreda Srbije (EPS). The Guarantee Agreement outlines several energy-related obligations for Serbia upon its confirmation.
The Guarantor of the Agreement is the Republic of Serbia, represented by its government through the Ministry of Finance, while the lender is Cassa Depositi E Prestiti. The Loan Agreement was formalized during the Italy-Serbia business forum in Trieste, with EPS highlighting the fund’s role in accelerating the green transition in the Western Balkans.
The program’s goal is to enhance Serbia’s electric power sector’s decarbonization and security. The draft law specifies Serbia’s obligations as the guarantor, including commitments to phase out coal use by no later than December 31, 2050, and establish milestones for closing thermal power plants by December 31, 2030.
Furthermore, Serbia pledges to adopt the National Energy and Climate Plan (NEKP) by September 30, 2024, aiming for over 45% renewable sources in its electricity production mix by 2030. The law also mandates Serbia to launch its first renewable energy auction for at least 400 megawatts of wind power, aligning with European Commission standards.
Moreover, the Guarantor will support legal and regulatory initiatives to develop the short-term electricity market and merge it for enhanced market liquidity and competitiveness. Additionally, efforts will focus on boosting energy efficiency across Serbia, particularly in building renovations and capacity-building within the Directorate for Financing and Improving Energy Efficiency.
The draft law, yet to be debated in Parliament, underscores Serbia’s strategic alignment with European energy policies and its commitment to sustainable development through robust legislative and operational measures.
