Serbia is ready for winter when it comes to energy sources. There is enough electricity and gas. The question mark remains whether prices will remain the same or will still rise. The IMF warns that Serbia will need an increase in the price of electricity in November, and experts indicate that the rise in energy prices will depend on whether the government wants to buy social peace with low prices.
Serbia is currently in a good position in terms of electricity and gas, which are significantly cheaper on the stock market this year compared to the previous one. Thus, electricity today on the stock exchanges costs around 145 euros per megawatt hour, and gas costs 33 euros. EPS currently buys from 500 to 1,000 gigawatt hours per day at a price of less than 100 euros per megawatt hour. From the New Year until today, Serbia has earned 86 million euros from the sale of electricity.
“At the moment, our accumulations are four percent above plan, and our coal dumps are at their maximum. This saves primary energy that will be used in the winter either to cover domestic needs or for sale when the price is higher,” says David Žarković , Director of the EPS Free Market Trade Sector.
The President of Serbia stated a few days ago in Vienna that Serbia has 588 million cubic meters of gas in stock, which are stored in the Banat Palace, and since last year also in Hungarian underground warehouses. Also, three weeks ago, a joint venture for gas trade was established with Hungary.
“With a regular supply of gas, there should be no problems during the winter, regardless of the fact that prices are expected to increase. I think there will be minimal or no problems at all,” said Serbian President Aleksandar Vučić.
Serbia has a long-term gas supply contract with Russia. Experts note that additional security flows, the Balkan Stream.
“The Balkan stream, which has been completed, has a larger capacity than what we need, so that is also a security if it happens that we need more, it can be passed through. So I think that Serbia is doing very well at the moment prepared for gas consumption and that there will be no problems with supply,” Vojislav Vuletić, president of the Assembly of the Serbian Gas Association.
How certain is the price increase?
The assessment of world analysts is that, if the winter is severe, the increase in the price of natural gas is more than certain. When it comes to the price of electricity, the IMF warns that Serbia will need another price increase in November, and another in early 2024.
Jelica Putniković, editor of the Energija Balkana portal, says that the prices of energy products will depend on whether the government wants to buy public peace with low prices.
“However, they are also doing this in Western Europe now, so we cannot say that Serbia is a great exception. When it comes to gas, more than 80 percent of it is imported and sold cheaper than the purchase price. As for natural gas, it must be make a realistic calculation of how much gas should cost both for households and for the economy, if someone is going to be helped to create a system from where it will be financed. So we have Serbia gas that will be able, not only to service the payment of the gas that it sells further to consumers, than who will have the financial material to be able to finance the construction of gas storage facilities, because then we would not have to rent storage facilities in Hungary,” she says and points out that EPS should operate in the market in order to export electricity at a higher price .
He points out that gas consumption has increased in Serbia, but also that the economy is increasingly using this energy source.
“Consumption is at the level of three billion cubic meters annually. The economy is consuming more and more, and on the other hand, we have gasification not only of cities and municipalities, especially in the south of Serbia, but we also have an action for citizens to connect to the gas pipeline and start consuming gas for heating instead of electricity, and consumption has increased a bit. In this way, foreign investors are also attracted when they are told that we have a secure supply of both gas and electricity,” says Putniković.
Speaking about the Balkan interconnector, she points out that the gas pipeline should be ready by the end of the year.
“I don’t know how far the Bulgarians managed to finish their part and they are working on it. They need to build a buckle from Sofia to the Greek border. Of course there should be excess gas in the gas pipelines that arrive in Greece – either in Tap or for Alexandropoulis to finally work, which is under construction. A real LNG terminal is not being built there, but a ship will be converted into a compressor station, which is good because it will be completed faster and then Serbia will have the possibility to be supplied from that eastern direction.
I would like to mention that we also have the possibility supply and through Horgoš, it is the gas pipeline through which we used to get gas through which we can connect to the gas pipeline systems in Austria,” says Putniković, emphasizing that in emergency situations, if the stored quantities are not sufficient, we will have the option of acquiring additional ones.
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