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Serbian energy policy

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The foundations of the Serbian energy policy are to be found in the Energy Sector Development Strategy to 2015. This was issued by the Serbian Parliament in November 2004 (the “Energy Strategy”). Starting from the existing situation in the sectors of energy consumption, energy production and available energy resources, the Energy Strategy defines the main goals and priorities for the development of the energy sector over a 10-year period:

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Basic priority: the continuous improvement of the technical and operating performance of the existing energy sources and facilities in the electric sector (including the production, transmission and distribution of electric energy), oil, gas and heating sectors.

Targeted priority: the economical use of energy products and an increase in energy efficiency. The main goals here is the substitution of electric energy with natural gas for thermal energy services, a decrease in energy consumption in the production of energy, a decrease in the losses suffered in the distribution of electric energy and natural gas and the introduction of new energy efficient electric appliances, equipment and facilities.

Special priority: the selective use of renewable energy sources (“RES”) and the utilization of new energy technologies, equipment and facilities which are energy efficient and environmentally friendly.

Optional priority: the introduction of new gas technologies, including a new combined natural gas cycle plant and the construction of local combined heat and power (“CHP”) facilities with low to medium capacities.

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Long-term strategic priority: capital-intensive investments in new energy sources and facilities and the participation in the planning of new strategic energy sources and facilities such as the potential connection to regional and pan-European infrastructural systems.

The program for the realization of development priorities set in the Energy Strategy is defined by the Program for the Implementation of the Energy Strategy 2007-2012 (the “Energy Program”), issued by the Serbian Government (the “Government”). This program will run for a period of 6 years. The Energy Program sets the dynamics of the implementation of the priorities set in the Energy Strategy, energy facilities which need to be constructed, concessions which need to be granted for the construction of energy facilities, measures for the stimulation of investment in the energy sector, measures for the improvement of energy efficiency and the utilization of RES, and the protection of the environment.

On an annual level, the energy Balance (the “Energy balance”) sets out the quantities of energy needed for the given year, available energy resources, the manner of supply of energy to consumers, the necessary supplies of energy and the capacities of energy facilities which need to be reserved in order to secure a continuous and regular supply of energy to consumers. The Energy Balance is prepared by the Ministry of Mining and Energy and is adopted by the Government.



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