The Serbian government has enacted comprehensive changes to its energy legislation, targeting households, businesses, and the state energy sector. These reforms align Serbia with European Union standards, addressing the country's energy market transformation and climate commitments.
Key Changes for Households and Businesses
- Dynamic Tariffs: Households and small consumers can now sign contracts with dynamic electricity tariffs, enhancing flexibility in energy consumption. Suppliers managing over 200,000 end consumers must provide this option.
- Net Metering to Net Billing Transition: While net metering for electricity self-producers (prosumers) will be phased out by December 31, 2026, current systems will retain the mechanism for their operational lifespan. Net billing, already in use for businesses, will replace it.
- Active Buyer Status: Firms and groups can now independently produce, store, sell electricity, and participate in flexibility and energy efficiency markets, provided these are not their primary commercial activities. This paves the way for broader participation in renewable energy initiatives.
The law introduces Power Purchase Agreements (PPAs) and ancillary service markets, enabling businesses to secure renewable energy sources, lower costs, and reduce carbon tax liabilities both domestically and under the EU’s Carbon Border Adjustment Mechanism (CBAM).
Market Reforms and Liberalization
- Balancing Market: The law creates mechanisms for balancing market responsibilities, ensuring all participants are accountable for power system deviations.
- Auxiliary Services Market: Liberalized conditions allow energy storage operators and active buyers to contribute their services.
- Aggregation and Certification: Aggregators can now facilitate small-scale participants' entry into the energy market, while renewable energy facility installers must obtain certification.
Serbia has also abolished the 1989 ban on nuclear power plants, imposed after the Chernobyl disaster in Ukraine.
The reforms are expected to modernize Serbia's energy sector, making it more competitive and environmentally sustainable. The Ministry of Mining and Energy emphasizes the importance of these measures in decarbonizing Serbia's economy and enhancing its integration with European energy markets.
