The Minister of Mining and Energy, Dubravka Đedović Handanović, was among the participants of the panel titled "Energy Security 2.0: From Diversification to System Resilience," after which she spoke about the current energy situation.
Over the past few months, Serbia has faced numerous energy challenges, but as the minister pointed out, the most important thing is that citizens did not feel them.
"The biggest challenges come from the geopolitical community. What we have shown is that we successfully combat all these challenges, so that our citizens feel nothing, regardless of all the problems we have had over the past four years. We managed to overcome the war in Ukraine, the conflict in the Middle East, the sanctions imposed on NIS, and the lowest water level in history this year, so we managed to deal with all those circumstances successfully," the minister said at the beginning of the interview, adding:
"The most important thing is that there were no shortages of fuel, electricity, or gas. Prices went wild on the European continent. During 2020 and 2023, our citizens did not feel such large consequences as citizens of other European countries. There were fuel shortages in countries in the region, restrictions on refueling, but regardless of the sanctions imposed on Serbia and regardless of the extremely high prices that appeared on the market, our citizens had no restrictions.
Challenges associated with the same level of inflation have lasted for months. Surrounding countries had certain restrictions when it comes to the supply of electricity and energy products, while in Serbia there were none.
So, regardless of the numerous consequences, we successfully fight against them, primarily through measures we implement and decisions we make, guided by the primary goal of protecting our citizens. That, of course, has a certain price, primarily for the budget of the Republic of Serbia and the income of our citizens. However, by creating good energy reserves, which we have built over the past four years and continue to build, we manage to respond - whether it is about gas reserves, coal reserves, or water accumulation - we have everything we need to be ready."
As Đedović Handanović pointed out, the consequences the state encounters are also connected to our infrastructure.
"The consequences are also connected with our infrastructure, which was mostly built 30, 40, or 50 years ago. However, we have also built new infrastructure, primarily when it comes to gas infrastructure, as well as new production capacities and energy facilities. We continue to work, aware of the fact that there are great infrastructural needs, but also that we must strengthen our energy network and our energy foundations so that in the years to come we can follow economic growth, make our economy more competitive, and improve living conditions and energy security."
Where does Serbia stand on the diversification of sources?
"Diversification is an important element. We started diversifying gas supply a few years ago. First, we built the Balkan Corridor, i.e., the interconnection near Zaječar, which is connected to the Bulgarian border and further to Turkey. Before the war in Ukraine, we strengthened additional supply routes and created additional routes for the flow of gas to the Balkans. Today, this is the most significant route that can be available not only to us but also to other countries, including Hungary and Slovakia. In 2023, we also completed another interconnection, which connects us with the Caspian region, primarily with Azerbaijan, where we can get alternative amounts of gas, not only from Azerbaijan but also from Greece, via the energy terminal. We continue to build new interconnections with North Macedonia and Romania, which will provide us with even greater opportunities when it comes to alternative supply sources," the minister stated, adding:
"Of course, we are committed to finding the most competitive conditions for our citizens, the most flexible and cost-effective ones, to ensure the best possible supply.
We will continue to work on this when it comes to crude oil supply as well. The construction of a new oil pipeline between Serbia and Hungary is also planned, so it is important that we strengthen this direction too. When it comes to new sources and capacities, new energy sources have truly achieved great progress over the past four years. I mean the fact that the new capacities added have tripled, or more than tripled, both from solar energy and wind energy. Most of the new capacities come from wind farms, and about 400 megawatts of capacity from renewable energy sources have been added."
It is planned that in the coming years, Serbia will complete the project in Kostolac.
"Today we have 1,300 prosumers, i.e., producers who produce clean energy for their own needs, which is very important because they also contribute to the energy transition, as well as to new production capacities. When it comes to state resources, work is underway to build a new thermal power plant in Kostolac, as well as to complete projects in the field of renewable energy sources in Kostolac. We continue to work with dedication, primarily in accordance with Serbia's plans for 2030 and 2035; we have clear plans to increase our energy capacities."
The phased approach to the European Union
"When it comes to energy, the approach is very clear, and that is the integration of energy markets as soon as possible. And that regardless of the moment of accession of this region, specifically Serbia, to the European Union. That is something that the Energy Community also wants. This integration will bring greater security both to Serbia and the region, as well as to European Union countries. The process is ongoing.
After verification, Serbia received a response from European institutions and feedback, and it is necessary that we continue to work on improving our cooperation to meet the needs of energy markets. I hope we will be successful in that. That is something that remains as a task for the future parliament, but we have certainly contributed a lot - we have adopted a series of new laws and regulations that should open the door to the integration of energy markets.
However, good progress has been made in terms of the first regional energy market, in which Serbia participates together with two member states, Slovenia and Hungary. The accession of this region to the market brings greater competitiveness, better conditions, and better prices to everyone, and that is precisely what we strove for while working on EU accession."