RES investment is an opportunity to negotiate with the EU

4/16/2025
From the panel „ETS and CBAM – what is better for Serbia and the region?“

„Elektroprivreda Srbije“, as well as the entire region, has made a leap forward in RES project investments. EPS is intensively investing and completing the wind farm "Kostolac" solar power plant "Petka", developing projects for the construction of the pumped-storage HPP "Bistrica" and 1 GW of solar power plants, and at the same time taking over green energy from other producers through a feed- in tariff and through auction contracts for market premiums. This opens up space for negotiations with the European Union and the Energy Community regarding the Emissions Trading System (ETS) and the Cross-Border Carbon Adjustment Mechanism (CBAM) – said Boriša Davidović, Director of the Energy and Economic Planning and System Services Department at EPS, at the panel "ETS and CBAM – Which is Better for Serbia and the Region?".

He pointed out that EPS largely measures emissions and reports on it, and verification is currently in the procedure, but in the case of CBAM payments, investments in RES are not seen in the energy mix.

- EPS has a balanced portfolio, but in the case of good hydrology, we would not be able to export to the EU, because a tax would be charged on green, hydro energy as if it originated from thermal power plants. Thus, the EU is also giving up clean energy. If we look to the future, for us 2030 is yesterday, 2035 is today, and 2040 is tomorrow – Davidović explained.

Sandra Dokić, State Secretary at the Ministry of Environmental Protection, emphasized that Serbia, as a candidate country, strives to develop the ETS system so that it is ready and able to trade emissions at the time of accession to the EU. She also said that a system of MRVE, monitoring, reporting and verification of emissions has been established. Dokic also stated that Serbia is ready for negotiations, but that studies and analyses are needed on how much some taxes and measures will cost, taking into account the specifics of each country.

Jasmina Trhulj, Head of the electricity unit at the Energy Community Secretariat, explained that the EU is doing a study focusing on electricity as a CBAM product and that it should be completed in the middle of the year. She said that the region must establish its negotiating positions, and that it is important to accelerate the integration of the electricity market so that there may be an exemption by 2030.

Representatives of the Electric Power Industries of Montenegro and Bosnia and Herzegovina also presented their view of this burning energy topic in the direction of a just transition, while Dimitrije Knjeginjić, director of Lafarge Serbia, pointed out that these announced measures and taxes look like a kind of EU racket towards the Western Balkans, and that it is crucial to point out all the shortcomings and consequences.

 

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