Although the region of Southeast Europe depends on coal when it comes to electricity production, and the emission of harmful gases is many times higher than in the EU, the energy transition and the decarbonisation process have accelerated, it was said at the RES Serbia 2021 conference.
– It is necessary to tax carbon dioxide emissions, and to use the revenues for the needs of transition, because there is no systemic source of money yet. It will be a big social problem, so it needs to be solved as soon as possible. The EU expects the same pace of transition from the Balkans, but it needs help, because the budget is not the same. This must be combined with domestic measures and taxation of emissions – believes the director of the Secretariat of the Energy Community Janez Kopac.
He also mentioned that the goals, when it comes to numbers, are changing very quickly, and that they will not be clear this year either. However, as he stated, that leaves room for the countries in the region to decide on their own future, through their own plans.
Northern Macedonia is the leader in the region
Northern Macedonia is the first country in the region to decide to stop using coal. The idea was concretized through the planned 3.1 million euros for RES projects in the period until 2027 and 2030, respectively, and an oil tax was introduced.
– We started with the reforms in 2017. A new law on energy, regulations, bylaws have been passed. We have also introduced a new model to support RES. In parallel, we prepared a conference for the construction of solar factories, with the support of the EBRD, and there was great interest from EU companies. We have also adopted a strategy for energy development, the first in the region, which is completely with a green agreement – summed up what has been done so far by Viktor Andov, advisor to the Prime Minister of Northern Macedonia.
He pointed out that the Government will give legal investors a legal guarantee, thanks to the law on special investments, which will provide them with security. He also announced that he would work with foreign investors on wind farms with a total capacity of almost 500 MW, and the investment would be between 2 and 3 billion euros.
Clear and secure auctions are important
Giles Dicson, director of Wind Europe, pointed out the importance of quickly obtaining building permits for the construction of wind farms, but also the need for clearer and safer auctions, which will only be interesting to investors.
– The CFD model is the best, because it gives a clear perspective of stable income. If you rely on market revenues, banks will not easily give credit, because the price of financing is higher in relation to bilateral premiums – he stated.
Bankers agreed with this during the second panel, emphasizing that predictability is the most important factor for loans granted for a large number of years.
Dicson also emphasized that the wind creates jobs in rural communities, as well as that the retraining of miners in Poland should be an example for others.
By the end of February 2022, we will have a three-year auction plan
Jovanka Atanackovic, State Secretary at the Ministry of Mining and Energy, stressed the importance of working on regional projects and exchanging experiences. That is exactly how Serbia got, as she pointed out, a flexible law that enables the application of various mechanisms with one goal.
– By the end of October, all bylaws will be passed. Auctions will be electronic, thanks to the modern software that is being worked on. By the end of February 2022, we will have a three-year auction plan – said Atanackovic.
She explained that the auctions will be important for attracting investors by giving premiums, and possible direct contracts between producers and consumers are envisaged, which, as Atanackovic stated, will mean especially for the industry.
– Strategic partnerships are also possible, for the state to offer land, but also all other possibilities – she added.
She stated as especially important that green bonds will be placed on Thursday, but she also drew attention to renewable hydrogen, because the state is especially dealing with the hydrogen strategy, in cooperation with the German Government.
– An investment plan worth 17 billion euros in the field of energy and mining has been made, which also includes private investments related to RES – concluded Jovanka Atanackovic.
The RES 2021 conference is being held in Belgrade, and the organizers are the Renewable Energy Sources Association of Serbia (RES Serbia), in cooperation with the general partner, the European Bank for Reconstruction and Development (EBRD), eKapija reports.
