One of the main complaints of investors in renewable energy project development is weak coordination and bad network among ministries in Serbia. The competent ministry, for example, issues the energy permit, then the price of land on which the investor intends to build explode far above market rates.
Petar Skundric, Energy Advisor of Prime Minister of Serbia, said that in daily conversations with investors, they don’t have criticism concerning the procedures.
“Any request for permission energy was processed within the statutory deadline. Frequently, there are cases that investors do not submit all required documentation for issuing energy permits. Then we ask for additional documentation. After obtaining the necessary documents they get Energy license. Realization of investments in renewable energy in Europe and in the world process is not simple. The construction period is here similar to that of the EU. It takes a large number of approvals, especially studies that prove that the investment will not have negative effects on the environment. It is necessary to meet all the formal construction procedure as with any other object. The construction of these buildings is a complex task over the world and it affects the jurisdiction of many state bodies such as Ministry of Environment, Ministry of Agriculture, Water and Forestry, Institute for Nature Conservation, JP Serbian water, EPS and so on. “said Skundric.
“The website of the Ministry of Energy has a list of sites for construction of small hydropower plants. In this list it is possible to find sites that are not in the cadastre and still eligible for SHH, but it is necessary that expert committee of the Ministry determines that it does not distort the energy potential of the river.
In fact the Wind Energy projects are something different. The investor has the right to build wind park in Serbia wherever determines that there is an energy potential for the economic viability of this project. Everything is on the investor. It is often forgotten that investments in this sector is highly profitable, beside feed in tariffs the state should not add any other incentives to subsidize the additional investment. Especially as these investments carry some adjustment in electricity prices for all citizens because investors receive a guaranteed twelve-year contracts on the purchase and consumption. EPS as a public company buying off this green energy, will in accordance with practice around the world shift the burden to the end user. ”
Skundrić agrees with the assessment that the goal of the new Energy Law is the elimination of ignorance and lack substance administration. Skundrić says that the new Energy Law is another proof that Serbia needs investments in renewable energy and is ready to work seriously with the investors in their implementation. The essential thing that makes the law modern are more rights and guarantees for potential investors.
“Policy incentives includes guaranteed purchase price for all electricity produced in small hydro, biomass, wind power plants, solar power plants and power plants that use biogas, landfill and sewage gas, for 12 years from start of production. I can say that the legal framework in Serbia is absolutely compatible within the EU which is the position of the Energy Community in Vienna, of which Serbia is an equal member. The great interest of investors tell us that the legal framework is good. So far, we have more than 10 small hydroelectric power plants built. We have issued more than 1,400 MW of licenses for the use of wind power and on this basis substantial funds are transferred into the budget of Serbia. “concludes Skundric.
Source: Danas Magazine & Serbia Energy News Desk