The document outlines comprehensive plans focusing on energy security, decarbonization, and the economic competitiveness of the energy sector, setting a deadline of 15 August for public submissions.
The draft anticipates a 45% reduction in thermal power capacity, while renewable energy capacity is expected to surge by 20 times. The Ministry has organised three public consultations to discuss the draft strategy: the first at the Chamber of Commerce and Industry of Serbia in Belgrade, followed by sessions in Niš and Novi Sad.
A key highlight of the strategy is the gradual phasing out of coal by 2050
The report reflects the significant changes in international energy dynamics, influenced by geopolitical conflicts, notably the Russia-Ukraine war.
In tandem with the draft strategy, the Ministry released the Report on the Strategic Environmental Impact Assessment for the Energy Development Strategy of the Republic of Serbia up to 2040, with projections up to 2050
The draft strategy proposes the introduction of carbon pricing as a pivotal financial mechanism to expedite the energy transition. This measure aims to disincentivize fossil fuel usage and promote energy efficiency, renewable energy development, and support for coal-dependent communities.
By 2040, the strategy envisions the complete cessation of coal use in households and public or private sectors, including district heating systems. The remaining coal reserves will be classified as strategic to ensure readiness for any critical energy situations. Coal plant operations will be adjusted based on electricity demand, with some units maximized and others placed in reserve or decommissioned.
Notably, the coal-fired Kolubara A power plant is scheduled for decommissioning by 2030, and TPP Morava will either be shut down or reserved. The overall capacity of coal and gas thermal power plants is projected to decline from 4,600 MW to 2,520 MW by 2040. This reduction, alongside the utilisation of hydropower, forms the backbone of Serbia’s decarbonization efforts.
Future hydropower developments include the Bistrica project by 2032 and the integration of Đerdap 3 into the transmission network by 2040
Regarding gas power plants, the decommissioning of Panonske Elektrane necessitates the construction of new capacities in Novi Sad, with a planned 350 MW electric and 100 MW heat capacity plant.
Additionally, a potential gas power plant near Niš could offer 150 MW of electricity and 100 MW of heat.
The strategy underscores the necessity of carbon capture and storage to align with decarbonization goals, emphasizing the need for substantial investment in these technologies.
As Serbia embarks on this transformative energy journey, the draft strategy represents a critical step towards achieving a sustainable, secure, and competitive energy future.
