During the official visit of President Xi Jinping to Belgrade, Serbia and China signed numerous agreements, yet none were in the field of electric power, which experts attribute to Serbia’s primarily European energy standards. While Minister of Mining and Energy, Dubravka Đedović Handanović, exchanged a memorandum of understanding with the Chinese Ambassador Li Ming, it pertained to geology and mining.
Speculation arises that Serbian authorities may be discontented with the delay in completing the Block B3 construction at the Kostolac Thermal Power Plant, valued at $618 million, which began in 2017 and may not finish until at least July this year. Hence, they are hesitant to engage in similar projects with Chinese partners.
The 350-megawatt plant, constructed by China Machinery Engineering Corporation (CMEC), is at the center of discussions. Some suggest Belgrade, in its efforts to balance between China, Russia, the United States and the European Union, aims to distribute foreign investments evenly to avoid displeasure from any power center.
Moreover, it’s argued that the absence of a new energy-related memorandum stems from a previous agreement signed early this year. Serbia inked a deal worth €2 billion with Chinese companies Shanghai Fengling Renewable and Zijin Copper for wind and solar power plants and a hydrogen factory. However, experts note this investment is more significant for Beijing than Belgrade.
Minister Handanović will sign an agreement for an oil refinery with China Energy International Group and a memorandum for a solar panel factory with Hunan Rich Photovoltaic Science & Technology, further diversifying energy collaboration.
Energy expert Željko Marković suggests Serbia’s alignment with European energy standards constrains bilateral agreements with China. Despite this, Serbia and China maintain cooperation in various energy projects, including renewable energy ventures near Bor, which aids in decarbonization efforts.
