Geopolitical developments inevitably affect everyday life and national economies, while the energy sector - as the engine of development and a prerequisite for every business - is always at the epicentre. Through fluctuations in energy prices, especially oil and gas on the global market, the crisis in the Middle East is indirectly impacting Serbia’s energy sector as well. Serbia’s largest energy company, the Electric Power Industry of Serbia (EPS), relies primarily on domestic production resources, above all coal and hydropower, which significantly mitigates the direct consequences of global geopolitical instability on the security of electricity supply.
"We carefully manage our coal stockpiles and water reserves in reservoirs, while continuously monitoring markets in the region, Europe and the world. We optimise the operation of our production capacities while constantly tracking developments and potential risks on international energy markets. Our main priority is ensuring a secure electricity supply for Serbia’s economy and citizens," EPS stated.
Construction of new capacities
When asked what is being done and which key measures are being implemented to ensure stable supply for citizens and the economy in globally unstable conditions, EPS says that the modernisation and improvement of existing capacities, together with the construction of new renewable energy facilities, are the key measures making the country’s largest energy system a secure link in the chain.
"Over the past two years, we have increased EPS capacity by 426 megawatts, which has provided additional security. Construction of a new, modern thermal power unit in Kostolac with a capacity of 350 megawatts has been completed, and we have added 76 green megawatts from a wind farm and solar power plant, also in Kostolac, to our energy portfolio. Following the completion of revitalisation works on our largest hydropower facilities such as HPP 'Đerdap 1', 'Bajina Bašta', and 'Zvornik', which now have greater capacity, improved efficiency and longer operational lifespans, we are continuing to upgrade the hydropower sector. Preparations are already well underway for the modernisation of the 'Vlasina Hydropower Plants', EPS’s veteran hydropower system which has been operating for seven decades. It is particularly significant that we secured €15.43 million in non-repayable grants for this project from the Western Balkans Investment Framework (WBIF)," EPS emphasised.
Investments aimed at improving the operation of thermal capacities are also a major focus, with environmental protection projects being especially important. EPS has successfully completed the construction of three desulphurisation plants, and all major thermal power plants now comply with strict environmental standards regarding SO₂ emissions.
Strategic projects
Work is also actively progressing on preparations for a strategic project - the construction of the Bistrica reversible hydropower plant, which is a key prerequisite for greater integration of renewable energy capacities not only in Serbia, but across the region. Preparations are also underway for the construction of a gas-fired power plant in Niš, which will contribute to decarbonisation and diversification efforts. Another significant undertaking is the large-scale project to build 1 GW of solar power plants with battery storage systems.
"Alongside ensuring energy stability, our goal is greater system flexibility, stable baseload energy and increased resilience to global disruptions in energy markets. We are determined to increase the share of clean energy in our production portfolio so that by 2030 Serbia will obtain 45 per cent of its electricity from renewable energy sources. What is certain is that the energy transition and the pursuit of carbon neutrality impose numerous challenges, and no power utility can or should face them alone. It is important to ensure the financial sustainability of investment projects, because that is a prerequisite for the energy security and stability of the entire system. For this, we also require the support of international, EU and other financial institutions that share the same energy values and goals as we do," EPS stated.
(EUpravo zato)
