The reminder by the Minister of Energy, Dubravka Đedović, that the European Bank for Reconstruction and Development (EBRD) recently approved a financial package worth 300 million euros for the liquidity of „Elektroprivreda Srbije“ opened the question of what this means specifically – is it that this joint stock company is insolvent and that it an additional financial injection is needed in order, as the minister said, to finally begin the professionalization of the most important energy company, all with the aim of making it more successful and modern or, after all, something else.
After talking with the director of the EBRD for Serbia and the Western Balkans, Mateo Kolanjeli, the minister pointed out that all the conditions for the payment of the first tranche of the loan of 200 million euros, which will significantly contribute to the liquidity of “Elektroprivreda Srbije”, have been met.
In the Ministry of Energy, when asked by our newspaper to explain what it means that the money is taken for the liquidity of EPS, they answer that the EBRD loan agreement in the value of 300 million euros was signed on March 15, 2023. The signatories are the Ministry of Finance, EBRD and EPS, as the beneficiary of this loan, which faced great challenges during the winter season due to the multiple jump in energy prices on the market.
Among other things, these funds should help develop a regulatory framework for the use of renewable energy sources, ensure the security and sustainability of energy supply, and support the gradual decarbonization of the energy sector. Financing was provided in two tranches, with the guarantee of the Ministry of Finance on behalf of the Republic of Serbia.
Priority projects for all areas of the energy sector are determined by the baselines of the energy infrastructure development plan and energy efficiency measures for the period up to 2028 with projections up to 2030, adopted by the Government of Serbia. In the field of electricity production, the main goal is to ensure the energy independence of the electricity sector, that is, independence from the import of electricity. In the long term, this implies basing the power portfolio predominantly on sources whose raw materials can be provided without the import dependence of our country.
The Increase in the production of electricity from renewable energy sources OIE, with the use of hydropower potential is the basis for the gradual decarbonization of the power sector. The use of RES, especially wind and sun, is also important for reducing import dependence, raising the level of energy security and environmental protection.
In the hydro sector, the priorities are, among other things, the construction of the reversible hydroelectric power plant “Bistrica” (628 megawatts), the provision of regular capital overhauls and the revitalization of the hydroelectric power plant HPP ”Đerdap 2”, as well as the consideration of the financial and technical profitability of the reversible hydropower plant RHE “Đerdap 3”. In the sector of renewable energy sources, the construction of the “Kostolac” wind park (66 megawatts) is underway, and the construction of six self-balanced solar power plants with a high capacity of up to one gigawatt is also planned.
When asked how they comment on the fact that even the European Union has not yet made a final decision to withdraw coal from electricity production, and whether Serbia should hurry, they answer that the goals in the energy transition process will be defined within the framework of the integrated national energy and climate plan, which is in progress, and for which a public discussion has been started. This document, together with the new energy development strategy, should be adopted by the end of the year.
Serbia has ambitions to become a full member of the EU, and in that sense it follows the vision of the members, when it comes to the decarbonization of our energy sector. However, significant financial resources and the support of international partners will be needed in that process, because as in EU members, in Serbia and in our region, the gradual abolition of coal must be accompanied by mechanisms of a just transition in order to protect miners and the mining sector, the relevant ministry points out.
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