The Minister of Mining and Energy, Dubravka Đedović Handanović, stated that Serbia’s existing long-term gas supply contract with Gazprom is valid until the end of May, and that negotiations have begun for an extension of the contract based on the requirements for secure supply and the stability of Serbia’s energy market. These negotiations focus on the contract’s duration, quantity, and flexibility.
“Our intention is to sign the contract for at least three years, preferably longer, and for the price to be defined by the oil formula for certain quantities outlined in the long-term agreement. Flexibility in withdrawals during the summer and winter, in line with consumption, is also very important,” she told Politika. Đedović Handanović emphasized that one of the positive aspects of the upcoming negotiations is Hungary’s confirmation of its intention to take on larger capacities from the “Balkan Stream” pipeline compared to previous years, which will generate additional income for Serbia from natural gas transport.
The Minister also mentioned that the European Commission (EC) will decide whether the Jadar project will be declared strategic for the EU, despite Serbia being a non-EU country.
“A study on the environmental impact must be completed, which is a requirement by the state. Only then will we know if the project will move forward. This process will take at least a year and a half, and it is being carried out by top experts, not politicians,” she said.
According to her, the technical experts, not politicians or activists seeking to score cheap political points, should have the final say on the matter.
“Rare minerals, including lithium, are currently the world’s top geopolitical issue, and anyone who hasn’t realized this by now should understand. Trump wants Greenland for its minerals, while the U.S. has forgiven Ukraine $500 billion for the war—this is all being done for Ukrainian mineral resources. It’s not just lithium, but other rare minerals as well,” said Đedović Handanović.
She explained that, at the same time, Russia is developing the latest mining technologies, while France, Germany, Finland, and Portugal are beginning to exploit their own minerals.
“All of this is happening at the White House, while here in Serbia, the issue of minerals, which is the world’s number one topic, is being blocked by internal and external enemies,” she added.
Speaking about the state-owned power utility, Elektroprivreda Srbije (EPS), the Minister stated that the company has been a target for various politicians and those presenting themselves as experts, though often politically motivated.
“In recent days, there has been a comparison between two completely different years—2023, marked by historically good hydrology, only one major overhaul, and higher prices for commercial customers, and 2024, in which EPS made the largest investments in the last decade, nearly €550 million, 26% more than in 2023,” she said.
Đedović Handanović reminded that in 2024, the new thermal block in Kostolac was completed, the first generator at the Bajina Bašta Hydro Electric Power Plant (HPP) was revitalized, long-delayed overhauls were finished at the TENT A and TENT B plants, and a desulfurization system was installed at TENT A, with similar work ongoing at TENT B. These efforts were accompanied by extensive routine overhauls and investments in coal production, particularly in opening new pits in Kolubara.
She stressed that it should not be forgotten that last year was also marked by a drought that led to poor hydrology, while electricity consumption reached record levels in the summer, and industrial electricity prices were about 20% lower than in 2023.
“Whether EPS is on the right path is shown by the data for the first three months of this year, with a profit of 10.8 billion dinars, significantly exceeding the plan,” the Minister emphasized, adding that throughout the winter, coal and electricity production remained stable, and that coal stockpiles and reserves were at high levels, which had not been the case in previous years.
She also mentioned that coal production in the first three months of this year was 8% higher than last year.
“For the state as the owner, it is important that EPS continues its transformation, ensuring good liquidity and continuing investments in existing and new capacities. It is also crucial to further improve coal production, open new mines, and strengthen the engineering workforce,” she said.
According to her, this year will be another historic one for EPS, as the first wind farm will be connected to the grid, and work on the “Petka” solar power plant is nearing completion. These two projects will turn old mining waste sites into sites for producing green energy, and EPS will receive an additional 76 megawatts of green energy from the Kostolac region.
She also reminded that electricity prices for households have not increased in a year and a half, with the last change occurring in November 2023. At the same time, electricity prices for the industrial sector were significantly lower than market prices, even about 20% lower in 2024 compared to 2023.
“Electricity prices in Serbia remain among the lowest in Europe, and for industry, they are very competitive,” Đedović Handanović added.
She emphasized that coal will certainly remain a primary energy source in the foreseeable future, even though there are plans to develop a gas-powered plant.
“As part of the energy transition, we must reduce the share of coal-based energy, but never at the expense of the energy security of our citizens and economy—this is our absolute priority. The demand for electricity is growing every day, and we need new capacities, especially the new reversible hydroelectric plant Bistrica, which will not only provide additional megawatts but also enable balancing of variable renewable energy sources,” she said.
She concluded that this year is crucial for completing the technical documentation, with work expected to begin next year.
Đedović Handanović also reiterated that the two-month delay in sanctions against NIS (Serbia’s oil and gas company) is great news for Serbia, as it would have mostly affected citizens and the economy, rather than the Russian energy sector, which was the primary goal of the announced sanctions by the U.S. administration.
“Intensive diplomatic efforts and negotiations have been underway with both the U.S. and Russian sides for four months, and now talks will be raised to the highest level, with expected discussions between President Aleksandar Vučić and President Vladimir Putin, and hopefully, U.S. President Donald Trump. A complete lifting of sanctions is the only long-term sustainable solution, and it is a complex and lengthy process,” she added.
The Minister also stated that Serbia will continue to monitor the market, including falling prices in recent weeks and supply conditions, while strengthening logistical conditions, rail and water terminals, increasing reserves, and bolstering the resilience of the market as much as possible.
“This year, we will also launch oil and oil derivative storage facilities in Smederevo, which will increase our mandatory and commercial reserves by 120,000 cubic meters,” the Minister of Mining and Energy concluded.
