Making the transition from fossil fuels and imported gas to more renewable forms of energy is not\u00a0an easy task in any country, but when your share of coal fired electricity production is in the top six,\u00a0with the likes of India and South Africa, the shift required is even greater. Added to the complexity\u00a0are that your gas resources are from Russia and tackling climate change targets is all the harder\u00a0when firewood remains a common source of domestic heating. These are the challenge that Serbia\u00a0currently faces and one which I was pleased to explore recently with a range of experts at a British\u00a0Serbian Chamber of Commerce event supported by Grayling.<\/p>\n
Serbia needs to decarbonise its energy sector if it is to meet its climate change targets and meet\u00a0international obligations to reduce thermal power generation and greenhouse gas emissions. As a\u00a0result, it has set a clear goal to increase the share of renewables electricity production to around\u00a040% by 2030.<\/p>\n
Renewables potential Yet the country\u2019s nascent renewables sector is still restricted. Hydroelectric generation is in jeopardy\u00a0due to drought conditions. And as the expert panel pointed out, while there\u2019s not a problem with\u00a0interest in developing renewable projects, most have been unable to start construction or\u00a0generating because there is a need for clear market mechanisms and a lack of approved connections\u00a0from renewables to the grid infrastructure since 2019.<\/p>\n The vital role of infrastructure and regulatory upgrades Panellists highlighted that Serbia\u2019 electricity network is already quite robust and how upgrades to\u00a0the infrastructure are planned but it needs to be readied for the connection of new renewable\u00a0power sources. This is part of a wider programme of infrastructure works. The EU is currently\u00a0building the Trans-Balkan Electricity Corridor, which should help integrate Serbia, Bosnia and North\u00a0Macedonia into the wider European market. However, according to the Serbian electricity\u00a0transmission system operator, EMS, new cross-border power lines are required across nearly all the\u00a0country\u2019s borders.<\/p>\n Gas supply remains a major issue in Serbia. Balkan Stream, which supplies Russian gas, was only\u00a0opened in 2020 and the country remains heavily dependent on Russian gas. However, a new gas\u00a0interconnector with Bulgaria will open an alternative source of liquified natural gas in the meanwhile\u00a0while other gas pipelines can be developed to other nations in the future.<\/p>\n If Serbia, and countries that are similarly dependent on coal-fired power stations and Russian gas,\u00a0are to make the transition to renewables and new energy sources, they need to invest in its energy\u00a0infrastructure and provide a sound regulatory and market mechanism that energy companies can\u00a0have confidence in. Serbia can benefit from new technological advances, such as battery storage and\u00a0hydrogen, but it needs to ensure the basics are in place first. Beyond that, we should be assured that\u00a0the strong Serbian sunshine, mountain streams and winds can do much of the rest.<\/p>\n
\n<\/strong>Serbia\u2019s issues highlight some of the key challenges that many countries face across the world. On\u00a0the face of it, Serbia has a lot to offer in terms of energy generation from alternative sources. It has a\u00a0long history of hydroelectric, which is still the country\u2019s main source of renewable power. It is also a\u00a0favourable climate for solar power and there is scope for wind power, as well as improved energy\u00a0efficiency and decarbonisation measures. There may even be scope for nuclear power, though there\u00a0is a current moratorium on nuclear energy in the country. And, importantly for the rest of Europe,\u00a0Serbia is a vital transit country for energy from Southeast Europe.<\/p>\n
\n<\/strong>On the regulatory side, the government\u2019s energy and climate change plan have stalled over the past\u00a0couple of years. However, there is now hope that public consultation might start again, opening the\u00a0doors to a debate about what forms of energy Serbia should pursue and the share of renewable\u00a0generation.<\/p>\n