Country Report On Energy Business in Serbia January 2014.unlocked

Country Report on Energy Business in
Serbia
(January 2014)
SERBIA
ALBANIA
FYR
MACEDONIA
BOSNIA
AND
HERZEGOVINA
CROATIA
HUNGARY
R
O
M
A
N
I
A
BULGARIA
MONTE-
NEGRO
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Content
Page:
Chapter 1: Basic Info 5
1.1 Basic info 5
1.2 Energy potental 8
1.3 Electricity prices 10
Chapter 2: Electricity market opening and trade 12
2.1 Introducton 12
2.2 Liberalizaton of electricity market 13
2.3 Restructuring of EPS 19
Chapter 3: Market players 21
3.1 Utlites and authorites 21
3.2 Electricity trading companies 24
3.3 Companies involved in generaton projects 24
Chapter 4: Privatzatons 26
Chapter 5: Electricity projects 27
5.1 Actualites 27
5.1.1 Enlargement of lignite mines 27
5.1.2 Electricity meters 28
5.1.3 Nuclear energy 29
5.2 Generaton projects 30
5.2.1 Electricity projects of Oil Industry of Serbia (NIS) 31
5.2.2 Combined Heat and Power Plant Pancevo 31
5.2.3 Combined Heat and Power Plant Novi Sad 32
5.2.4 Thermal Power Plant Kovin 33
5.2.5 Thermal Power Plant Kolubara B 34
5.2.6 Thermal Power Plant Nikola Tesla B 35
5.2.7 Thermal Power Plant in Pester plateau 36
5.2.8 Thermal Power Plant Stavalj 36
5.2.9 Thermal Power Plant Kosovo RE 37
5.2.10 Thermal Power Plant Kostolac B 37
5.2.11 Thermal Power Plant Despotovac 39
5.2.12 Cogeneraton facilites 39
5.2.13 Hydro Power Plants on Ibar River 39
5.2.14 Hydro Power Plants on Drina River 40
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5.2.15 Hydro Power Plant Djerdap 3 41
5.2.16. Hydro Power Plant Bistrica 42
5.2.17. Hydro Power Plants on Lim River 42
5.2.18. Hydro Power Plant Morava 43
5.2.19. Hydro Power Plant on Sava River 43
5.2.20. Renewal of Hydro Power Plant Zvornik 43
5.3 Transmission projects 44
5.3.1 Ongoing projects 44
5.3.2 Recently fnished projects 45
5.3.3 Announced projects 45
Chapter 6: Renewable energy 47
6.1 Introducton and feed-in tarifs 47
6.2 Small hydro power plants 48
6.3 Wind energy 51
6.4 Biomass & biogas energy 56
6.5 Solar energy 57
6.6 Geothermal energy 59
Chapter 7: Consumpton, generaton and export 60
7.1 Electricity consumpton 60
7.2 Electricity generaton and export 62
7.3 Existng generaton facilites 66
7.3.1 Thermal power plants 66
7.3.2 Hydro power plants 70
7.4 Electricity Transmission 72
7.5 Transmission capacity and monthly auctons 74
5
Chapter 1: Basic info
1.1 Basic info
Main characteristcs of Serbian power system are:
- Electricity market is opened for all customers except household and small companies
- Low electricity price on regulated market
- Slow growth, or even reducton in recent years, of electricity demand
- Modest eforts for faster growth of renewable electricity generaton
- Opened for foreign investments in electricity generaton
- Various large generaton projects in preparaton phase
- Good electricity generaton mix
- Old generaton units
- Good power interconnectons with neighbouring countries
Electricity market in Serbia is dominated by natonal power utlity EPS (Elektroprivreda Srbije Power In-
dustry of Serbia), which owns all large generaton capacites and fully supplies all tarif and largest share of
eligible consumers. EPS has 100% share in all large generaton capacites, i.e. no joint venture agreements
were made in the past, except investment with Croatan power utlity HEP in one unit in TPP Nikola Tesla A.
EPS manages 99% of entre electricity generaton - 8,350 MW in power plants, i.e. 5,200 MW in TPPs, 2,800
MW in hydropower plants and 350 MW in CHPPs ((including Kosovo*). Electricity generaton in Serbia is
mainly thermal based. and vary between 60% and 70% of total generated electricity.
Electric power system of Serbia has very favourable hydro thermal generaton mix that enables very fex-
ible operaton. Additonally, Serbian hydro power generaton is very fexible due to existence of reversible
pump storage Bajina Basta that has possibilites to actvate water pumping of 614 MW in each regime.
Major generaton facilites are lignite based generaton complex Nikola Tesla and hydro power generaton
complex on Danube Djerdap. Thermal power is around 70% generated in TPPs Nikola Tesla A and Nikola
Tesla B. Hydro power is around 70% generated in HPPs Djerdap I and Djerdap II. For EPS, electricity gen-
eraton cost is low, since EPS owns lignite mines, and water usage fees are cheap.
All units are older than 20 years, and on average, age of generaton units stands at 30-35 years. Since 2000,
major units in thermal and hydro power plants have been revitalized (or currently being revitalized), so with
low consumpton growth and planned decommissioning tll 2020 there should not be serious problems in
providing security of supply.
Restructuring of EPS was announced in 2009, but since today, only small steps have been made, where larg-
est step is creaton of EPS Supply. There are no plans for privatzaton of EPS, since government is looking
for ways to increase capital value of EPS through 9 billion EUR investments in generaton capacites tll 2015
(with strategic partners) and increase of electricity prices. According to analysis, increase in prices of 1 euro-

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* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declara-
tion of independence.
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cents/kWh would increase value of EPS by 1 billion EUR, but overall expenses for electricity for households
and industrial customers would be increased by 20 %. By new energy law EPS should be transformed into
joint stock company soon. According to Strategy of energy development, EPS should not be privatzed untl
2015, apart from transfer of certain number of free shares to citzens of Serbia.
EPS has posted 21 million euros loss in 2012. EPS plans to post 47.3 million euros of business proft in 2013,
however the overall result will be negatve, some 188 million euros, due to payment of short-term loans.
The overall worth of short-term loans will reach 242 million euros in 2013.According to the budget for 2013,
EPS should earn 1.54 billion euros from electricity sales, while overall business income should reach 1.72
billion euros. Overall business expenses of EPS in 2013 should reach 1.68 billion euros. In the end of June,
EPSs debts toward suppliers were reduced to 140 million euros compared to 215 million euros in the end of
December 2012. By most recent announcements from EPS ofcials, EPS should have zero loss in 2013. Ac-
cording to business plan, EPS should have posted 200 million euros loss in 2013.
In 2011, EPS has posted 240 million euros of proft. Worth of EPS has reached 12 billion euros, due to annual
investments of 400-500 million euros since 2007, company said. In 2007, the companys worth stood at 7-8
billion euros. EPS had posted some 30 million euros loss in the 2010 and EPSs core proft stood at 124.5
million euros. However, overall expenses reached 217 million euros in 2010. The amount includes unpaid
electricity bills.
Largest lignite mine in Serbia is Kolubara. It produces 70% of lignite for TPPs in the country, so around 50%
of electricity is produced by lignite from Kolubara mines. Mine supplies: TPPs Nikola Tesla A and B, TPP Kol-
ubara and TPP Morava. This mine will also supply future TPPs Kolubara B and unit 3 in TPP Nikola Tesla B.
Annual lignite producton of TPP Kolubara is between 25-30 million tons of lignite, while historical maximum
was achieved in 2011, 31 million tons. Before that, maximum was achieved in 2008, 30.6 million tons. Kol-
ubara coalmine produced 30 million tons of lignite during 2013.
It is important to menton 300 MW accumulaton HPP Piva, which is located in Montenegro. In the last 30
years, HPP Piva has been operatng under long-term contract between the Power utlity of Montenegro
(EPCG) and the EPS, which should be renewed in following years (HPP is located in Montenegro, but oper-
ated by EPS). HPP Piva delivers peak energy to Serbian power system, and in return, EPS delivers base energy
to EPCG when needed (mostly during annual overhauls of TPP Pljevlja). Amount of annual deliveries of base
load to EPCG depends on annual generaton of HPP Piva, and it stands at around 70% of HPP Piva generaton.
Due to lack of investments in new generaton capacites Serbia became importng country on the annual ba-
sis for the frst tme in 1996. But, during spring and summer Serbia is signifcant exporter of electric energy.
The biggest electricity imports are in winter because of increased household consumpton. In a period of
November-February, Serbia is importer of electric energy, while it is exportng it in a period of May-October,
almost without excepton. Annual positve export-import balances can occur, but on average, import stands
at 600 MW annually. In 1980s and early 1990s Serbia was important electricity exporter.

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Distributon business in Serbia is performed by fve territorially organized companies, which are part of
public utlity EPS: Elektrovojvodina, Elektrodistribucija Beograd, Elektrosrbija, Jugoistok, ED Centar. General
Manager of EPS announced in 2009 that company would merge fve existng distributon companies into
three what would bring considerable cost reductons, but no progress has been made on this issue.
Total number of customers in Serbia is around 3 485 000, from which 3 100 000 are household customers.
Annual losses in distributon network amount around 4.5-5 TWh, or some 15 % of overall electricity deliv-
ered. Technical losses are estmated on 8.5 %, while non-technical losses are estmated on 6.5 % or 2.1 TWh.
At least 5 TWh is being spent for household heatng, annually. Details regarding distributon companies, and
supply are described in following chapters.
Overall debts of customers toward EPS stand at 900 million euros, where equal amounts are owed by house-
holds and companies. The companies with highest debts are the Mining and Smeltng basin Bor (40 million
euros), Zastava Energetka (27 million euros), Petrochemical plant Pancevo (23 million euros) and Fertlizer
plant Pancevo (11 million euros). The biggest debtors are the customers of Electricity distributon company
Jugoistok from Nis. According to EPSs data, in the end of 2012, some 10 % of customers (some 400,000
customers) had an overall debt of 710 million euros. Debts with maturity over 60 days stand at 715 million
euros, but signifcant amount accounts for penalty interest, which will be writen of according to recent
decision of the government of Serbia.
According to data from Energy Agency of Serbia, share of households consumpton in overall electricity
consumpton in Serbia was increased from 41 % in 1990s up to 60 % in 2000 and it was reduced to 52 % in
2011. In most of the EU countries, this share stands under 30 %.
In accordance with Energy law, startng from January 1, 2013, electricity market was liberalized for 27 larg-
est industrial customers. Startng from January 1, 2014, electricity market was liberalized for all customers
Liberalizaton of electricity market in Serbia ofcially started on 1st of January 2013, when all customers
connected on transmission network (high voltage) became eligible. These 26 customers, which contribute
with 9% share in entre electricity demand of Serbia were forced to abandon low, regulated tarifs and to
sign supply contract with either EPS Supply (branch of public utlity), or with some supplier on open market.
As expected, these consumers were not keen to abandon public utlity, and during past 12 months, only
one customer decided not to sign supply contract with EPS Supply (Messer, currently supplied by Slovenian
GEN-I).
Startng from 1st of January 2014, another step toward full liberalizaton of electricity market in Serbia was
made, when companies with over 50 employees, or with annual income above 10 million euros or compa-
nies, which facilites are connected to mid-voltage grid became eligible. Partcular 3200 customers account
to 25% share in entre electricity demand in Serbia. Only households and small customers remain on regu-
lated tarifs, and supplied by public utlity EPS- but only untl 1st of January 2015, when full liberalizaton will
come into force.

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1.2 Energy potental
The most of the Serbias renewable energy potentals is in biomass (49 %). The rest of the potental is in large
HPPs (27 %), solar (13 %), wind (4%), geothermal energy (4 %) and small HPPs (3 %).
Serbia has high amount of coal reserves, with 4 billion tons of proven lignite deposits. The reserves are
located in two main coal basins, Kolubara and Kostolac. Coal mines in Serbia are owned and managed by
subsidiaries of EPS.
Kolubara basin (southwest from Belgrade) has 300 km2 surface and produces some 70 % of overall domestc
coal output. It has medium calorifc value of 7.7 kJ/kg, and moisture content of 48%. Kolubara mines are
consisted of: Field B mine, Field D mine, Tamnava East mine and Tamnava West mine. Field B and Tamnava
East feld are nearly depleted (around 20 million tons remaining). Field D has 130 million tons of remaining
reserves, while Tamnava West has around 420 million tons reserve. There are proven reserves in Field E
(395 million tons), Veliki Crljeni (30 million tons, recently opened), Radljevo (340 million tons, planned) and
Juzno polje (500 million tons). This basin supplies TPPs Nikola Tesla A, Nikola Tesla B and TPP Kolubara, which
generate around 50% of electricity in Serbia. Kolubara Coalmine has produced 29.7 million tons of lignite in
2012, while overburden removal reached 67 million tons.
Annual lignite producton in Kolubara during 2011 was the highest ever. The overall producton amounted to
31.06 million tons, which was 5.4 % higher than planned. In the same tme, overburden removal amounted
to 71.13 million cbm (+8.6 %), and it was the third best result in companys history. The company also said
that average daily producton during 2011 amounted to 100,000 tons, where 96,000 tons was delivered to
nearby thermal power plants.
Kolubara Coalmine had posted 13 million euros of proft in the frst half of 2013. According to the adopted
fnancial report, the overall income reached 190 million euros, which was 9.7 % higher than planned, while
overall expenses stood at 177 million euros (-8.8 %). In the frst half of 2013, the coalmine produced 14 mil-
lion tons of lignite (+4.2 %). At the end of 2013, Kolubara coalmine produced overall amount of 30 million
tons of lignite. According to the mine management, company has liquidity problems and it should post some
31 million euros loss in 2013.
Kostolac basin (east from Belgrade) has 80 km2 surface. It also has medium calorifc value, 7 kJ/kg, which
is slightly lower than lignite in Kolubara basin. Moisture content is 50%, ash content stands on 15%, while
sulphur content stands on 3%. Kostolac mines are consisted of Klenovnik mine, Cirikovac mine and Drmno
mine. Klenovnik and Cirikovac felds are almost depleted, while Drmno has 440 million tons of reserves. This
mine supplies TPP Kostolac.
With present estmatons, Kostolac and Kolubara mining regions have enough reserves to supply existng
TPPs tll the end of 21st century. Lignite reserves on the mining pits that are already in operaton stand at
around 430 million tons in Kostolac and 570 million tons in Kolubara region. More than additonal 700 mil-
lion tons can be available on surface pits that are presently planned to be opened in Kolubara region, while

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total estmated remaining reserves in Kolubara region are around 1844 million tons. Estmated remaining
reserves in Kostolac region are 575 million tons.
In February 2012, EPS and German Thyssenkrupp signed the 18 million euros contract for purchase of new
bucket wheel excavator, which would be installed in Kolubara coalmine. The purchase of the coal excavator
will be funded from EPSs own funds. The excavator will be installed in period of 20 months, where local
companies will be awarded some 50 % of the contract.
There are huge estmated lignite reserves on the territory of Kosovo of approx. 10 billion tons, mostly located
in two major lignite basins: Kosovo lignite basin and Dukagjini lignite basin. There are also smaller lignite ba-
sins like: Drenica, Malisheve, Babush i Muhaxhereve lignite basin and one potental lignite basin in southern
part of Kosovo. The coal layer in the Kosovo Basin is contnuous, has 45 meters thickness in average and is
overlain by clays and sandy gravels with thickness that vary in from 60 to 130 meters. Moisture content in
lignite from Kosovo varies between 35% and 50%, with 12-21% of ash content. It has medium calorifc value
of 7 800 kJ/kg and 1% of sulphur content.
Existng plans are to increase electricity generaton capacity on the territory of Kosovo by up to an addi-
tonal 1 000 MW, which would require investments in opening new coalmines. Lignite is currently mined at
two locatons in the vicinity of the power plants (Mirash and Bardh mines). These two mines have largely
been exploited and new mines will have to be opened to provide adequate coal supply for the existng and
planned new power plants. With adequate investments, lignite mining will again become a large and proft-
able business in Kosovo.
Serbias gross hydropower potental stands at 27.2 TWh, mostly from rivers Danube, Drina, Lim, Velika Mora-
va and Ibar. Hydro potental in Serbia that can be technically used is about 19.8 TWh/year, out of which
about 10.3 TWh/year is already utlized. 15 TWh/year out of 19.8 TWh/year of technically feasible potental
is related to HPPs with output of more than 10 MW. There is a possible project of directng the water from
the River Tara into the River Moraca in Montenegro, which would reduce the potental of Serbia by 0.7 TWh/
year. The largest part of the remaining potental lies on the river Drina and Morava rivers. The remaining
hydro potental of the middle and lower course of the Drina River is divided between Serbia, Montenegro
and Bosnia and Herzegovina.
Serbia can achieve around 2.3 TWh annual electricity generaton from wind power. According to feasibility
study on wind generaton potental, 1 316 MW can be installed on locatons with more than 5 m/s wind
speed at height of 10 meters above ground. The sites in Serbia with highest average wind speed are Midzor
(with average wind speed of 7.66 m/s), Suva Planina (6.46 m/s), Vrsacki Breg (6.27 m/s), Krepoljani (6.18
m/s) and Deli Jovan (6.13 m/s).
The yearly rato of actual irradiaton to the total possible irradiaton reaches approximately 50%. The total
potental for solar actve technologies has been estmated to be 50-60% of heatng demand in the cloudier
central regions. Large plains are available only in northern parts of Serbia (Vojvodina), but solar irradiaton

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in this part is lower (around 1400 kWh/m2). Recently, 260 kW solar power plant was put in service near city
of Leskovac.
Biomass energy sources are distributed across an area of 24000 km2 (25% of the territory) covered with
forests and 45,000 km2 (55% of the territory) used for agriculture. Biomass energy potental comes mainly
from agricultural wastes (1.6 million toe) and wood biomass (1 million toe). Usable energy potental of ani-
mal waste is estmated at 0.45 million toe, while industrial and municipal waste is estmated at 1.4 million
toe.
In Serbia there are more than 60 geothermal systems with temperatures lower than 150C. Estmated en-
ergy reserves of geothermal resources are around 800 MWh, but utlizaton of this is low: only about 10%.
Identfed geothermal felds are located in Macva, Vojvodina, Podunavlje, Pomoravlje and Stg, while inves-
tgaton in twenty localites is in progress. The priority region in this investgaton is Macva. The installatons
already built are mostly for balneology purposes, tourism and for the heatng of greenhouses (but only in
three localites).
1.3 Electricity prices
Serbia belongs to a group of countries with a lowest electricity price in Europe, and electricity price on
regulated market is set by Energy Agency of the Republic of Serbia (ARES). There are several reasons for low
electricity price: Electricity price for households is infuenced by the government, and kept low. This is also
achievable by low generaton cost, since EPS which supplies almost all customers owns lignite mines, while
water usage fees are cheap.
In this moment, the average price of electricity for households stands at 5.35 eurocents/kWh (without VAT),
and the average price of electricity for industrial customers stands at 5.1 eurocents/kWh. Liberalizaton of
electricity market has started from 1st of January 2013, and it is described in following chapter.
In order to request electricity price increase, EPS and EMS (transmission system operator) must submit their
analysis and proposal of new electricity tarifs. Afer ARES evaluates their proposals and makes new analysis,
it proposes change of price to government, which reaches fnal decision. Startng from October 1st 2012,
the setng of new prices is the sole responsibility of the AERS. That means that the government will not ap-
prove prices anymore and and for price change, procedure is more simple which could refect in more ofen
changes in tarifs. In additon, the price of electricity would not be subsidized anymore.
Staring from 1st of August 2013, electricity prices for customers eligible for public supply (tarif customers)
were increased for 11.3% in average. The average increase for households customers is 10.9 %. Afer the
increase, the new average price for households customers stands at some 6 eurocents/kWh (VAT included).
Average household in Serbia spends some 350-400 kWh of electricity per months while some 2.1 million
customers spend up to 500 kWh of electricity per month.

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Before this increase, electricity prices for tarif customers were increased by 15 % on average in April 2011.
Startng from July 1 2013, EPS Supply was granted license for public supply. EPS Supply took over the public
supply actvites from the previous fve suppliers within the EPS. New company was established in accord-
ance to the new Energy law and in accordance to the restructuring programme of EPS approved by the
government of Serbia. AERS demanded from all fve distributon companies to reduce the planned network
losses and to increase the security and quality of supply.
In the second half of March 2013, the government of Serbia adopted the Bylaw on energy customer pro-
tecton. In mid-October, 2013 the government of Serbia adopted amendments to the Bylaw on energy
customer protecton, which set the eligibility for reducton of electricity, natural gas and heatng bills for
underprivileged customers. The new amendments have set the criteria for subsidies for heatng bills for
underprivileged customers. The status of energy-protected customer will be granted to one-member house-
hold with monthly income of up to 115 euros, for two and three member households with monthly income
of up to 165 euros, for four and fve member households with monthly income of up to 220 euros and for
households with six and more member with monthly income up to 275 euros.
Energy-protected customers are enttled to 120-250 kWh of electricity per month during entre year and 35-
75 cbm of natural gas during heatng season free of charge. These customers will be also enttled to reduc-
ton of heatng bills during the heatng season, i.e. in period October-April, for 25-55 m2 of heatng space.
The status of energy protected customers will be valid for one year. The status can be revoked if the monthly
consumpton of the partcular customers was two and half tmes the limit set by the Bylaw. According to
estmatons, the overall cost for the state budget for energy-protected customers could reach between 30
and 40 million euros per year.
In the end of July 2013, EPS approved the decision on reprogramming the debts for electricity bills. The
debtors will be ofered to pay the debts in 12-120 monthly installments, depending on the debt amount.
The signing of the agreements on debt reprogramming will last between August 15 and November 30. The
Management board warned that the abovementoned debt reprogramming would be the last chance for
the customers to setle their debts. The debtors, who pay the 60 % of the debt at once, will be enttled to
40 % debt write-of. The debtors who decide to pay the debts in up to 60 installments, will be enttled to
15-30 % debt write-of, while debtors who pay the debts in more than 60 installments, will not be enttled
to write-of.

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Chapter 2: Electricity market opening and trade
2.1 Introducton
The frst Energy Law was adopted on 1st of August 2004, giving an impetus for future actons. This law has
incorporated the relevant European legislatve experience. It was in compliance with Directves 2004/54/EC
and 2004/55/EC of the European Parliament and the Council on electricity and gas. Privileged power pro-
ducers were defned by this law, as producers using renewable energy resources and waste in their power
generaton process and producers generatng power in power plants which are considered as small power
plants. But, none of the industrial customers changed its supplier tll 2013, and procedures for constructon
of RES generaton plans were unclear, uncertain and long-lastng. Secondary regulatons for constructon
of generaton capacites from renewable energy sources (especially small hydro power plants) and feed-in
tarifs were expected to be created during 2006, but they have been approved in December 2009.
Major changes in electricity sector deregulaton were made in 2005. Before July 1st 2005, the EPS was
vertcally integrated public utlity, undertaking the actvites of generaton, transmission and distributon
of electricity in Serbia. However, it was the politcal commitment of the Government of Serbia led by the
Ministry of Energy and Mining, to start with restructuring of the electric power sector. On July 1st 2005, EPS
was legally divided into two independent enttes EPS (same name as before Elektroprivreda Srbije) and
EMS (Elektromreze Srbije). EPS was enttled with power generaton, distributon, supply and power trade,
while EMS was enttled with transmission and system operaton. Both EPS and EMS remained 100%public
owned utlites.
In 2005, EPS has published the internatonal call in Financial Times for strategic partners willing to partci-
pate in the constructon of new power generaton facilites and revitalizaton of existng ones. The frst op-
ton proposed in the leter was the contnuaton of constructon of TPP Kolubara B. This can be considered
as frst serious step toward enlargement of Serbian generaton capacites since 1991.
Although there is signifcant trading actvity between trading companies in Serbia and signifcant cross bor-
der transitng actvity, in practce Serbian electricity market is partally open. EPS stll performs almost all of
the generaton and supply, although electricity market was opened on 1st of January 2013.
In 1999, In accordance with UN Security Council Resoluton 1244 (year 1999), territory of Kosovo was put
under United Natons interim administraton (United Natons Mission in Kosovo - UNMIK),with all assets of
EPS on this territory. Kosovo Electricity company (KEK) was formed as independent company that serves all
consumpton and operates all power plants on Kosovo territory. There are lots of electricity exchanges be-
tween EPS and KEK. Usually KEK imports energy from EPS, but also KEK imports energy from trading compa-
nies and Albanian power utlity KESH. Very rarely KEK has its own excess of energy because its power plants
are not reliable and usually there is no enough operatonal generaton. Annual electricity consumpton of
Kosovo is approximately 4.5 TWh.
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The Serbian Regulatory body, AERS, was established in May 2005, but it became operatonal in the end of
2005. In operatonal sense the Law secures its independence.
The Energy Agency performs following actvites:
Tarif systems for power and natural gas for tarif consumers;
Tarif systems for access to and use of the power transmission or gas transportaton;
Determine the methodology for defning tarif elements for the calculaton of the price of power and natu-
ral gas for tarif consumers;
Determine criteria and methods for determining costs of connecton to the energy transmission and dis-
tributon system;
Issues licenses for conductng energy actvites;
Approves Grid Code(s) and the Electricity Market Code;
Determines the minimum annual energy consumpton needed for obtaining the status of an eligible cus-
tomer
2.2 Liberalizaton of electricity market
Initally, from adaptaton of Energy Law in 2004, consumers that use more than 25 GWh of electricity per
year were eligible to choose their supplier of electrical energy afer registering with the Energy Agency. Later,
consumers with annual consumpton of more than 3GWh got the right to change supplier but no consumer
exercised that right due to favourable tarifs of EPS and non-existence of procedures for changing supplier.
Despite the fact that electricity market was formally liberalized for all customers apart from households
(some 47 % of the market) startng from 2008, none of the customers has changed their supplier. They had
right to change supplier - but they were not obliged. Even if they decided to change supplier - functonal
market code was not adopted.
In mid-2012, AERS has published the draf Rules on changing the electricity and natural gas supplier and sent
it to the public debate. AERS said that the Rules would establish simple, efcient and free of charge proce-
dure for changing the supplier for all customers. The regulator also said that the Rules have been made in
accordance to the Energy Law and internatonal obligatons of Serbia set in the Energy community treaty,
and in accordance to the best practce of EU countries, which have energy markets.
GEN-I).
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Almost immediately afer 1st of January 2013, the most of the high-voltage customers in Serbia expressed
their un satsfacton with the current situaton on electricity market. They said that liberalizaton of electric-
ity market implied 70 % rise in tarifs and lack of choice of the supplier instead of the increased competton
and selecton of the most favourable supplier. The representatves of the customers also pointed out that
the necessary bylaws, required by the Energy law, were adopted in the end of December, so that compa-
nies had only nine days to fnd their suppliers for 2013. Despite the liberalizaton, EPS contnued to deliver
electricity to the high-voltage customers. Several customers failed to sign electricity supply contracts untl
January 1, afer which Ministry recommended that contracts could be signed untl January 15.
Seven large customers, cement factories, chemical and steel plants, sent the leters to authorites in Serbia
in which they demanded postponement of the liberalizaton and gradual rise in prices during period of three
years. This initatve was also supported by the Chamber of Commerce of Serbia. Industrial customers also
believed that increase in electricity prices should not be more than 15-20 % during the frst phase of liberali-
zaton. They also said that steep increase in prices would afect the industrial output and infaton in Serbia.
In February 2013, EPS established EPS Supply (as a branch), in order to be the Public supplier of the end
customers at regulated prices (and supplier for eligible customers). In other words, EPS Supply is retail/sup-
ply branch of EPS. Startng from July 1 2013, EPS Supply was granted license for public supply, and took over
supply business from fve distributon companies. Also, EPS Supply contnued with fulflment of obligatons
of EPS toward 25 of 26 eligible customers who signed supply contract with public utlity.
come into force.
Before we proceed with possible scenarios, some defnitons should be clarifed:
Public supply: Sale of electricity to household customers and small customers (tarif customers) at regu-
lated prices. Currently, only EPS Snabdevanje (EPS Supply) has a license to supply tarif customers
Supply contract: there are two types of contracts: Full supply contract, and regular supply contract. Custom-
er can have only one full supply contract, but in additon to that contract, if it decides, it can have unlimited
number of regular supply contract (or only regular supply contract, without Full supply contract).
Full supply contract: Electricity sale where the amount of delivered electricity is not determined by the
contract (it is based on the consumpton measured at the metering point). In this case, electricity supplier is
BRP, who pays access to the system and balancing to EMS while end customer pays balancing to BRP and
pays price of delivered electricity. In this case, customer does not pay access to the network (access is paid
by supplier).
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Regular supply contract: In case of regular supply (not full supply), fnal consumer can either register as
BRP, or transfer balance responsibility on BRP. In both regular supply cases, fnal customers pay access to the
system, and price of delivered electricity to suppliers. End customer also pays balancing to BRP, who pays
balancing to EMS (or directly to EMS, if end customer registered itself as BRP).
Balance responsibility: By signing Balance responsibility contract, market partcipant (in this case supplier)
is obliged to balance its generaton, consumpton, purchases and sales of electricity. In short fnancial re-
sponsibility for imbalances of input and output of electric energy. In order to become Balance Responsible
Party, each partcipant must sign contract with EMS, and submit bank guarantee/deposit, determined by
EMS formula on risk value (minimum 50 000 EUR, max 1 000 000 EUR). Each market partcipant must have
license from regulatory agency of Serbia in order to perform electricity supply business . Electricity supply
license is the same tme electricity trading license.

Last resort/reserve supply: Right to be supplied by Last resort supplier has each eligible consumer who
did not sign supply contract from 1st of January 2014. In additon, this right is obtained when supplier
entered into bankruptcy or liquidaton procedure, or its license was revoked. Also, in case when supply
contract was terminated, except in case when terminaton was consequence of non-fulflment of fnancial
obligaton toward supplier.
By Energy Law, customers have a right to be to be supplied by last resort supply for a period of 60 days, and
during that period they are obliged to sign supply contract with EPS Supply or any other electricity supplier
on the market. If not, they will be disconnected from the grid. This 60-day period started on 1st of January
2014, for all customers who did not sign supply contract with supplier. But it will also be applied in case
when customer/supplier cancels the supply contract or the supply contract expires.
This 60-day period might be misinterpreted by the customer: From 1st of January, customer will not be given
60-day extension period to sign a contract, and contnue to receive the same bill. He will be charged with
more expensive electric energy, because he did not sign a contract before 1st of January.
Government of Serbia has selected EPS Supply as last resort supplier for the year of 2013. In 2013, Price for
reserve supply in a period from 01.01.2013 31.01.2013 was set to 64.825 EUR/MWh (the average price at
which the transmission system operator EMS sells balancing energy). From 1st of February 2013, this price
was increased to 70 EUR/MWh.
What can be expected from 1st of January 2014?
Generally, several problems/scenarios can be expected:
1. Customers show no willingness to change their supplier: Even if some supplier would ofer beter condi-
tons for customer and cheaper electricity, it will be difcult to play against psychological factor of security
- Power Utlity of Serbia existed, exists, it will contnue to exist. On the other hand, customers are not familiar
with electricity market liberalizaton and market players in region/Europe. What would happen to me if
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supplier goes bankrupt, will I lose power, should I gamble for several percentages lower bill is the ques-
ton in customers head, which will be difcult to overcome. 12 months have passed since frst liberalizaton
wave, and only one customer in Serbia decided to switch supplier.
2. Customers ignore call to sign new contract with EPS Supply: This scenario is likely to happen, mostly due
to lack of informaton and will to sign something you dont fully understand (if I close my eyes, maybe the
problem will go away). If this occurs, either 2 month last resort supply period would be extended for some
period of tme, or decree will be approved by the government, where all customers who did not sign new
contract would be by default transferred to universal supply contract of EPS Supply similar to tarif custom-
ers contract. By regulatons, process of supplier change cannot be longer than 21 days, and it must begin at
least 21 days before expiry of valid supply contract.
3. EPS Supply cannot cope with number of new contracts: EPS Supply has limited number of employees, as-
signed to sign contracts with customers. By regulatons, all customers who did not sign new supply contract
with EPS Supply by the end of 2013, will be automatcally switched to more expensive last resort supply.
Each supply contact is slightly diferent; each customer would demand some clarifcatons, which takes tme.
If we just take into account 2 month period on reserve supply, EPS Supply would easily handle spread of 50-
60 customers per day. Problem lays in the fact that most of the customers would wait for some last minute
developments, and exponental curve of contract applicatons can be expected in the end of February 2014.
4. Most important for both supplier and customers: balancing. Only small number of consumers can provide
accurate consumpton diagram and defne their consumpton profle. And it is questonable if even they can
guarantee for it with large error margin. In past, neither customer nor distributon company was interested
in consumpton diagram of specifc customerand why would they be? Customer was only interested in
monthly bill, and distributon company (both supplier and DSO), with 700 000 customers on average can
easily balance itself (distributon dispatching calls EPS generaton, EPS generaton ups/lowers hydro genera-
ton in mater of minutes). Now, situaton is slightly diferent, and creates a problem for supplier, but only
if supplier is not EPS Supply. EPS Supply can stll call EPS generaton to up/lower hydro generaton. Price of
balance energy (upward - shortages), provided by EMS stood at 60.56 EUR/MWh in October 2013 (64.85
EUR/MWh in January 2013). Yes, balance energy is paid by end consumer. But can you ofer a compettve
contract to the customer, include balancing in fnal, compettve price and avoid delivering to him an in-
voice with inconvenient truth regarding his imbalances? Yes, customer pays for his imbalances but he
would like that to cost as low as possible.
During long period of years, customers did not care how overtme work in, for example factory, would in-
fuence on electricity bill with respect to his daily load curve. Are they keen to start caring? No. Is it risk free
for supplier to provide them with that feel? Yes, if you are EPS Supply. Can you, as a supplier be compettve,
have cross border capacity or energy at hand? Point 5.
5. There is no functonal electricity exchange in Serbia (nearest are Hungarian HUPX and Romanian OPCOM),
so obtaining of necessary amounts of electricity and capacites can be a challenge for small suppliers. Form-
ing of South East European Power Exchange (SEEPX) has been announced by EMS, and by most recent an-
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nouncements it should be operatonal in 4th quarter of 2014. EMS expects that companies from Montene-
gro, Macedonia and Republic of Srpska (RS) will take part in the power exchange. Even when formed, it could
take some tme untl there is sufcient number of ofers and purchases for it to become fully trustworthy.
So, what are the optons for supplier to obtain necessary and arranged amounts of energy, and avoid expen-
sive balancing energy? Or if consumer decided to increase its consumpton for short period of tme?
- Obtaining electricity in Serbia can be a challenge. In practce, there are no privately owned generaton ca-
pacites which sell electricity on open market, so energy can only be obtained from electricity traders or from
EPS Trade (in case of good hydrology, mostly intra-day).
- Obtaining electricity from abroad can be expensive, and challenging for new players in supply business. It is
easy to obtain necessary amounts on power exchanges with upper-cup ofer on HUPX and OPCOM, but reg-
istraton on power exchange is expensive. Also, there could be some export fees involved (for exports from
Bulgaria and Romania). Electricity can also be obtained from Bosnia and Herzegovina (highly dependable
on hydrology), mostly from Power Utlity of Bosnia and Herzegovina (EP BIH, long-term or intraday). Also,
allocaton of cross border capacites costs money, and it must be accounted in fnal price.
Who can perform electricity supply?
In order to perform electricity supply in Serbia, several conditons must be met
- Company is registered in Serbia (APR)
- Company obtained license for electricity supply from (AERS)
- Company has valid EIC code issued by EMS
- Company has signed Balance Responsibility contract with (EMS)

One of the obstacles in this process is amount of bank guarantee/deposit, which is determined by EMS,
based on EMS risk assessment formula (minimum 50 000 EUR, max 1 000 000 EUR). In additon, difcultes
related to obtaining necessary amounts of electricity have already been mentoned.
Mid voltage troubles
Situaton will be a bit diferent for customers connected to mid-voltage grid (1kV - 35 kV), who will become
eligible from 1st of January 2014. There are fve territorially organized distributon system operators (DSO)
in Serbia. Startng from 1st of July 2013, EPS Supply took over the public supply actvites from fve distribu-
ton companies, and from that moment they ofcially became only DSO-s. Although they are all owned by
EPS, there is signifcant diference in fees for system usage between diferent distributon system operators.
It can be considered as discriminaton since terms for access to the distributon grid are not equal, and the
customers in mostly underdeveloped parts of Serbia pay higher distributon fees.*
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On regulated market, fnal electricity bill (fees + energy) is the same for all customers. Price of delivered
electric energy is lowered if DSO has higher fee, in order to avoid discriminaton. Eligible consumers cannot
expect lower price of energy alone from its supplier, if they are unfortunate to be connected on DSO with
high fees.
Why diferent DSO-s have diferent fees? Due to diferent operatonal expenses, where the main infuence is
loss in the distributon network. Losses in distributon network are not uniform across Serbia and, for exam-
ple, losses of Elektrovojvodina stood at 11.4% in 2012, while losses of Jugoistok stood at 18.5% (main factor
is electricity thef, which is accounted as loss in network).
The most logical soluton is establishment of the single distributon system operator. Establishment of single
DSO within EPS was recently proposed by the actng Director of EPS (but again, it was also announced in
2009). In additon, establishment of the single DSO was outlined in the Guidelines for restructuring of EPS
adopted by the government of Serbia in November 2012. But, according to the Ministry of energy, develop-
ment and natural protecton, decisions regarding the future organizaton and operaton of DSO could not be
possible before adopton of the necessary amendments to the Energy law. In practce, establishment of sin-
gle DSO will hardly be achieved in next 6 months (steps: internal consensus within EPS > submission of of-
cial request to the Ministry > evaluaton of the Ministry > preparaton of amendments > publishing in ofcial
gazete > implementaton). But, it can be expected that this problem will be solved within next 12 months
(either by establishment of single DSO, or if AERS sets uniform tarif for distributon service, where EPS
would divide income from fees between its distributon companies, based on their operatonal expenses).
If you wish to receive a xls fle with currently valid transmission/distributon/EPS Supply fees and prices,
contact us on news@balkanenergy.com
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2.3 Restructuring of EPS
Restructuring of EPS was announced in 2009, but since today, only small steps have been made, where larg-
est step is creaton of EPS Supply. Startng from July 1 2013, EPS Supply was granted license for public supply,
and took over the public supply actvites from the previous fve suppliers within the EPS.
New Energy Law was adopted in mid 2011, and it adopted tmetable for transformaton of EPS and liberaliza-
ton of electricity market. According to law, the citzens of Serbia will be enttled to 15 % stake in EPS. But,
the transformaton of EPS into joint stock company is necessary in order to transfer free shares to citzens
of Serbia, in accordance to the law. The stake that should be given to current and former employees of EPS
is stll to be determined. According to the Energy law, EPS needed to end transformaton of the company
as well as separaton of supply and distributon actvites by October 1, 2012. In mid-November 2012, the
government of Serbia has approved the Startng points for restructuring of the Power utlity of Serbia. The
document includes plans for changing the legal form and organizaton of the company, in accordance to the
Stabilizaton and associaton agreement with EU and local Energy law.
In January 2013, the actng General Manager of EPS, Mr. Aleksandar Obradovic, announced big organizaton-
al changes in the company during 2013. EPS will be transformed in accordance to EU regulatons, minister
added and announced that fve distributon companies within EPS would be transformed in two companies:
the Distributon system operator, which will be in charge for the management of the network, and the Public
supply company (EPS Supply), which will be in charge of supply of tarif customers.
In the end of July 2013, round table on restructuring of EPS was held, and on that occasion, Minister of
energy, development and natural protecton Zorana Mihajlovic announced that great reshufing in EPS is
underway. EPS has reprogrammed 300 million euros of bad loans, while the debts of the state and munici-
palites for electricity bills will be converted into public debt, Minister said. The restructuring and corporat-
zaton of EPS is necessary in order EPS to become ready for market liberalizaton, she said. Government has
also decided that EPS will not be used for preserving the social peace, where underprivileged customers will
be granted social tarifs, which will be subsidized by the state, Minister Mihajlovic said.
In the second half of December 2013, Supervisory board of EPS, appointed in mid-December 2013, adopted
the new statute of the company. The new statute of EPS needs to be approved by the government of Serbia.
By the new strategy of the company, EPS would become joint stock company by the end of frst quarter of
2014. The new statute introduced two management levels, the Supervisory board and eight-member Board
of directors.
During October 2011, Energy Commission (EC) has published an ofcial report, in which it was stated that
Serbia should make additonal eforts to harmonize its standards in energy sector to EU standards. EC par-
tcularly pointed out difcultes related to monopoly of the EPS. However, EC also said that the recently
adopted Energy law is harmonized, in great extent, with EU standards. The main defciency of the new Law
is that the energy market will not be fully liberalized untl the end of 2013.
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EC said in the report that EPS stll has the monopoly in electricity sector due to fact that electricity prices are
regulated and way below market prices. EC urged Serbia to revise electricity tarif system, i.e. that the tarifs
should be set in accordance to expenses. The reform of the tarif system must not be delayed any further,
EC said. The issue of prices and independence of the Energy Agency of Serbia (AERS) is vital for practcal
liberalizaton of electricity market and atractng the necessary investments, EC said. EC also said that legal
separaton of electricity distributon and electricity supply should be fnalized.
EC said that the new Energy law is mostly in accordance to EU directve on Renewable Energy Sources (RES).
Report from Energy Commission showed that Serbia is lacking energy efciency, i.e. it spends 2.7 tmes more
energy per GDP compared to countries members of OECD. Serbia stll needs to adopt Law on ratonal use of
energy, EC report concluded.
Privatzaton of EPS is stll not in discussion.
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Chapter 3: Market players
3.1 Utlites and authorites
EPS Natonal Power Industry of Serbia (EPS Elektroprivreda Srbije). EPS owns all generaton capacites,
lignite mines, distributon networks, and supplies all tarif consumers and almost all eligible customers.
EPS is 100% state owned. Costs and payments are monitored by government and they are limited, which
is one of the reasons why EPS alone can not achieve enough of fnancial resources for investments, since
government has big impact on EPSs organizaton, incomes, and costs. Therefore power sector in Serbia is
signifcantly determined by governmental decisions. With 34,000 employees, EPS was the biggest company
in the country.
EPS consists of two associatons, Economic Associaton for Coal and Energy Producton, and Economic As-
sociaton for Electric Energy distributon.
Economic Associaton for Coal and Energy Producton consists of following subsidiaries:
HPP Djedrap
HPP Drinsko Limske
TPP Nikola Tesla
Mining basin Kolubara
Mining basin and TPP Kostolac
Panonske TPP-HPPs
Economic Associaton for Electric Energy distributon is consisted of following subsidiaries, i.e. large distribu-
ton companies
Elektrovojvodina
Elektrodistribucija Beograd
Elektrosrbija
Jugoistok
Centar
Besides two Economic Associatons, EPS has divisions for:
Electricity Generaton
Electricity Trade
Electricity Supply (EPS Supply)
Electricity Distributon
Strategy and investments
Electricity Generaton, Transmission and Distributon and Coal producton at the territory of Kosovo and
Metohija.
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In 2012, worth of EPS has reached 12 billion euros, due to annual investments of 400-500 million euros since
2007, company said. In 2007, the companys worth stood at 7-8 billion euros. In the end of June 2013, EPSs
debts toward suppliers were reduced to 140 million euros compared to 215 million euros in the end of De-
cember 2012.
In February 2013, actng General Manager of EPS demanded from the management board to approve 270
million euros loan, in order to avoid bankruptcy. According to the Business plan for 2013, EPS will be miss-
ing some 445 million euros in cash fow. Rest of the funds would be acquired through increase in electricity
prices and restructuring measures. According to current laws, EPS formally could not go bankrupt.
EPS has posted 21 million euros loss in 2012. EPS plans to post 47.3 million euros of business proft in 2013,
however the overall result will be negatve, some 188 million euros, due to payment of short-term loans. The
overall worth of short-term loans will reach 242 million euros in 2013.According to the budget for 2013, EPS
should earn 1.54 billion euros from electricity sales, while overall business income should reach 1.72 billion
euros. Overall business expenses of EPS in 2013 should reach 1.68 billion euros.
EPS should have zero loss in 2013, while, according to original plans, EPS should have posted 200 million
euros loss in 2013.
The biggest investments started by EPS in 2013 are the purchase of coal mining equipment for Kolubara
Coalmine (181 million euros worth) and renewal of hydropower plant (HPP) Zvornik (70 million euros). EPS
has been preparing the feasibility study for constructon of pump storage plant (PSP) Bistrica (4x170 MW).
The rest of the potental projects are unit 3 in TPP Nikola Tesla, unit 3 in TPP Kostolac B and CCGT power
plant Novi Sad.
EPS Supply was established in February 2013 by EPS, as a branch, in order to be the Public supplier of the end
customers at regulated prices (and supplier for eligible customers). In other words, EPS Supply is retail/sup-
ply branch of EPS. Startng from July 1 2013, EPS Supply was granted license for public supply, and took over
supply business from fve distributon companies. Also, EPS Supply contnued with fulflment of obligatons
of EPS toward 25 of 26 eligible customers who signed supply contract with public utlity.
EMS Transmission System and Market Operator (EMS Elektro Mreza Srbije). EMS is at the same tme
transmission system operator and market operator
Major divisions are:
For transmission grid
For transmission system operaton
For market operaton
SEEPX Power Exchange - Forming of Serbian power exchange, called South East European Power Exchange
(SEEPX) has been announced by EMS several tmes. By most recent announcements, SEEPX should be estab-
lished during Q1 2014, where the power exchange should become operatonal in the fourth quarter of 2014.
The partner during the establishment of power exchange would be EPEX SPOT. EMS expects that companies
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from Montenegro, Macedonia and Republic of Srpska (RS) will take part in the power exchange. According
to the head of EMS, the power exchange will reach its full capacity in 2018 and it should post some 400,000
euros of proft per year.
Oil Industry of Serbia (NIS) is one of the largest investors in Serbia, and one of the largest contributors to the
state budget (8-10%). NIS has initated one large scale wind projects, and plans to construct two gas fred power
plants, and one coal fred. Investments during 2013 and 2014 should be 528 and 580 million euros, respectvely.
NIS claims that, that since 2009, some 1.5 billion euros was invested in development projects, in accordance to
the privatzaton contract.
Ministry of Energy, Development and Environmental Protecton as insttuton has signifcant infuence
on energy sector and its development. Dominant functon of Ministry of Energy, Development and Environ-
mental Protecton is to supervise the energy sector and has also some responsibilites for regulaton of the
sector and policy. Currently, mining sector is merged into Ministry of Natural Resources, Mining and Spatal
Planning.
The Agency for Energy Efciency The agency has been formed in 2002 with support of EU and EAR with
the goal order to monitor implementaton of energy efciency project. Main objectve of the agency is im-
provement of energy efciency, by educaton, stmulatons, and management of programs and projects for
ratonal usage of energy.
The Energy Agency is responsible for legislaton in energy sector and issuing of licenses, but it does not
have signifcant infuence on the energy sector. Energy Agency is responsible for determining all prices,
methodologies and tarifs for generaton, transmission and distributon of electricity. Regarding investments
in generaton or electricity trade in Serbia, Energy Agency is responsible for issuing electricity generaton
licenses. Startng from October 1 2012, the setng of new prices will be the sole responsibility of the Energy
agency of the Republic of Serbia (AERS).
EFT and Rudnap Energy Financing Team (EFT) and Rudnap are largest Serbian trading companies. They
are the only two electricity trading companies having large ofce and numerous staf in Serbia. Other trad-
ing companies operate through smaller representatve ofces. These two companies are actve outside the
region as well, partcularly in Hungary, Slovakia, Czech Republic, Ukraine and Turkey. In 2006, one of major
shareholders in EFT (Mr. Vojin Lazarevic) lef and started to work in Energy business independently through
company Rudnap d.o.o. what reduced dominant positon of EFT, mostly in Bosnia and Montenegro. EFT is
currently developing thermal power plant and lignite mine Stanari in Bosnia.
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3.2 Electricity trading companies
Serbia is very important for electricity transitng in the region and bilateral trading between trading compa-
nies since it represents a trading hub of the region due to bordering with eight countries. There are many
internatonal electricity trading companies established in Serbia since local legislaton requires establishing
of local company for any electricity trading and transitng actvity. There are 61 licensed trading companies
in Serbia, as listed below:
SEE Power, Elgas Energy Trading, Enel Trade Serbia, ACEX, Energy Actve, Verde Power, Biogas Energy, EFT
Trade, Danske Commodotes Serbia, MVM Partner Serbia, Europan Plus, Fenix FEN, Petrol, Plava Munja,
Tinmar Energy, Raw and Refned Commodites, Decotra Power, Balkan Energetx, JAS Budapest, EPCG, OET,
Merill Lynch, E&T Energiehandel Serbia, Elxis, BSP Southpool, EVN Trading, EQM, HEP-Trade, Budapest En-
ergy Trading SR, PLC Interenergo, Rrepower Serbia, Statkraf Western Balkans, Conal Group, Verbund Trading
Serbia, PIMA, Rudnap Group, HSE Balkan Energy, EPS, Alpiq Energija RS, Energy Financing Team, CEZ Srbija,
EZPADA, AXPO, E.On Energy Trading Srbija, Energy Holding SR, GEN-i, Korlea, GSA Energy, Proenergija, Swiss
KTG, WP Trade Energy Systems, Energy Supply and Trade, Proentra, Sirius Regulus, Sector-VEKS, Dansenergy
RS, Virtuese Tesla, Arcadia Service, NIS, Sandon Trading, and EI.
3.3 Companies involved in generaton projects
Over last several years many companies expressed interest, were involved and started contacts with govern-
ment with respect to investng in power generaton projects. They are:
TPP Kolubara B and TPP Nikola Tesla B (bidders)
AES (Russia)
CEZ (Czech Republic)
Edison (Italy)
EnBW (Germany)
RWE (Germany)
CHPP Novi Sad (purchased documentaton)
Optma Group (Russia)
Edison (Italy)
PPC (Greece)
HSE (Slovenia)
NIS (Serbia)
TPP Kovin (in development)
Energy Consultng & Engineering (local)
LMBV Internatonal (Germany)
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HPPs on Ibar River (in development)
SECI Energia (Italy)
HPPs on Drina River (in development)
RWE (Germany)
ERS (Bosnia and Herzegovina)
SECI Energia (Italy)
HPP Djedrap 3 (expression of interest)
Guodian Corporaton (China)
RWE (Germany)
United Arab Emirates
Wind Energy (expression of interest/in development)
Bondcom Green Energy (Italy)
Contnental Wind Partners (USA)
Electrawinds (Belgium)
RE Energy (Switzerland)
Gaberia Internatonal (Spain)
Wind Alliance Group (Spain)
Notos Wind Power (Canada)
Wellbury (Austria)
Ventureal (Austria)
Fintel Energia Group (Italy)
Energowind (Local)
Loger (local)
MTC (local)
Velburi-Bela Anta (local)
Balkana (local)
NIS (local)
Solar Projects (expression of interest)
CHD (China), SEPE (Luxemburg), KACOM, Electrawinds, Eurosolar
Geothermal/biodiesel/biomass (expression of interest)
BD Geothermal energy (BDGE) (Canada), ENESCO (Slovakia), Electrawinds, Green Investment (Czech Re-
public)
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Chapter 4: Privatzatons
According to Strategy of energy development, EPS should not be privatzed untl 2015, apart from transfer of
free shares to citzens of Serbia. Government is trying to increase value of EPS, through capital investments
and constructng additonal generaton capacites with strategic partners. According to privatzaton law, cit-
zens are enttled to free shares in state-owned companies, i.e. EPS, Airport, Telecom, and NIS (Oil Industry
of Serbia).
Neither one of state or EPS ofcials did not give any statement which could imply privatzaton of EPS in near
future. In 2011, former General Manager of EPS, Mr Dragomir Markovic said that the best model for privat-
zaton of EPS would be recapitalizaton. This should be done through strategic projects for constructon of
thermal power plants, which have been initated by EPS. He was against sale of parts of EPS, which would
be, according to him, the worst opton for the company.
In February 2010, former President of Serbia Boris Tadic said he would never propose privatzaton of EPS.
He said in interview that EPS is the backbone of natonal economy, which should remain state-owned. Few
months before this statement, former Prime Minister Mirko Cvetkovic announced that EPS would not be
privatzed in conventonal sense; however, natonal power company would be privatzed in certain sense and
in several stages in order to avoid potental mistakes that have been made by some countries in the past.
Recently, Prime Minister of Serbia Ivica Dacic said that EPS would not be privatzed, since he believes that
controlling the majority stake in energy sector would be of key importance. During March 2013,Minister
of energy, development and natural protecton Zorana Mihajlovic once again announced that EPS or its
branches would not be privatzed.
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Chapter 5: Electricity projects (in progress/announced)
5.1 Actualites
5.1.1 Enlargement of lignite mines
Kolubara, Largest lignite mine in Serbia, needs to invest 700-800 million EUR for opening of new, Radljevo
feld, in order to cover lignite demand of new capacites (TPP Kolubara B and unit 3 in TPP Nikola Tesla B).
Before opening of Radljevo feld, felds C and G should be opened in order to provide sufcient amounts of
lignite for existng and future TPPs. Annual investments should reach some 150 million EUR during next 7-8
years, which should be one of the largest investment cycles in companys history. In mid November 2010,
Kolubara started producton on feld E, in which reserves are estmated at 350 million tons. During the frst
phase, the company will be able to produce 100 million tons from this feld.
In August 2012, Kolubara coalmine confrmed that European Investment Bank (EIB) and German KfW Bank
had approved overall 150 million euros loan to the company. The loan will be used for opening of three new
open pit mines, which should enable stable electricity producton in Serbia in incoming decades, the com-
pany said. The loan will also be used for purchase of coal excavators, belt transporters, conveyors and for
coal homogenizaton.
In April 2013, Kolubara Coalmine and Swedish Sandvik signed the 14.4 million euros contract within the pro-
ject Improvement of the environment in Kolubara coalmine. The contract refers to the purchase of system
of coal excavator-belt conveyor-depositor. The project includes the introducton of system for management
of coal quality and homogenizaton in the western part of the coalmine. The latest contract was the third
one within the project, which overall worth is 181 million euros. Funds for the project are being provided by
European Bank for Reconstructon and Development (EBRD, 80 million euros), German KfW Bank (65 million
euros), the government of Germany (9 million euros) and EPS itself (27 million euros).Earlier, EPS has signed
contract with Krupp and Kopex for the purchase of coal excavators and belt transporter. Overall worth of
these contracts is 60 million euros.
The annual savings are estmated at 26 million euros, while the coal consumpton should be reduced by 1
million tons. The emissions of CO2, SO2 and NO2 should be reduced by 3 %, while the amounts of coal ash
and slug should be reduced by 885,000 tons per year.The project should be implemented in period of three
and half years.
Kolubara mine produces 70% of lignite for TPPs that produce over 50% of electricity in the country (TPPs
Nikola Tesla A and B, TPP Kolubara and TPP Morava). This mine will also supply future TPPs Kolubara B and
unit 3 in TPP Nikola Tesla B. Annual lignite producton of TPP Kolubara is between 25-30 million tons of lig-
nite, while historical maximum was achieved in 2011, 31 million tons.
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Lignite reserves in mine Drmno (Kostlac mining complex) are sufcient for electricity producton of existng
units and the new unit of TPP Kostolac tll 2060. In this moment, lignite mine Drmno produces some 9 million
tons of lignite, where some 7.5-8.5 million tons are being spent by nearby TPPs Kostolac A and B. Exploraton
works on new feld Moravica are in fnal phase. According to inital estmatons, the lignite reserves of the
feld stand at some 510 million tons.
5.1.2 Electricity meters
According to the estmatons, EPS has around 80 million EUR of annual losses related to electricity thef. In
order to reduce losses due to electricity thef, EPS decided to start implementng Advanced Meter Infra-
structure and Meter Data Management (AMI/ MDM) equipment, i.e. modern electricity meters. EPS plans
to replace all of 3.5 million meters in period of ten years. Overall cost of the project is estmated at 1 billion
euros. The investments should repay in 5-6 years, since annual losses should be reduced by 4-5 %. EPS had
submited 25,000 lawsuits regarding electricity thef in the last four years. EPS said that new Advanced Me-
ter Infrastructure and Meter Data Management (AMI/ MDM) equipment, would improve energy and eco-
nomic efciency and it should increase collecton rate of electricity bills and reduce losses. New equipment
will enable remote metering of consumpton and management of distributon network.
EPS has already published several tenders for purchase of 250 000 modern electricity meters, as pilot pro-
ject, but they all failed due to complaints of the bidders. EPS has already acquired 80 million euros loan from
European Bank for Reconstructon and Development (EBRD) and European Investment Bank (EIB). EPS said
that new meters should create environment for liberalizaton of electricity market by the end of 2015. The
meters should be installed in the fve municipalites, in which EPS has the biggest commercial losses. How-
ever, EPS wants to increase number of meters to be installed and the company wants to obtain new loan
from EBRD and EIB in order to provide funds for the project.
In the end of April 2012, EPS has published the public procurement for purchase of the system for remote
metering and management of the electricity consumpton. The estmated worth of the procurement is 60
million euros. The procurement will be funded by domestc banks. The procurement will refer to purchase
of electricity meters for large industrial customers and for metering points for public lightning and for high
voltage substatons. EPS expects that both domestc and foreign companies would take part in the tender.
EPS said that the new system would enable remote metering of 30 % of overall electricity consumpton in
Serbia, i.e. for all customers except for households.
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5.1.3 Nuclear energy
Serbia has signed moratorium afer accident in Chernobyl, which forbids constructon of NPPs. Moratorium
has been signed by all countries in former Yugoslavia in 1989, afer four-year long public debate and ref-
erendum, and it expired in 2015. Before that, experts have selected two potental sites for constructon of
NPP: Kostolac and Mladenovo. Local experts believe that if Serbia decides to build NPP, it should be built on
Danube, on the border with Croata.
First ofcial who pointed out importance of investments in nuclear energy was former Vice Prime Minister,
Mr. Bozidar Djelic, in 2007. He was supported by some experts, who pointed out that coal reserves in Serbia
might last only for another 50 years, and hydro capacites are insufcient. A year later, former Minister of en-
ergy of Serbia, Petar Skundric expressed his believes that Serbia needs to reconsider opton for constructon
of nuclear power plants, despite the current moratorium on constructon of NPPs. But, shortly afer those
statements, he said that no NPPs would be built in Serbia in the next 15 years. It is simply because it takes
minimum 12 years for preparing the feasibility study so that no one should fear that NPP would be built in
next 15 years. Former minister Skundric, was in favour for both constructon of NPP on Serbian soil, as well
as partcipaton in NPP Belene project in Bulgaria.
NPP Belene involvement
Government of Serbia consideried partcipaton in Nuclear Power Plant Belene project, which envisages
constructon of 2 000 MW power plant in Bulgaria. In April 2010, prime minister of Bulgaria Boyko Borisov in-
vited Serbia to take part in the project. In December 2010, minister Skundric confrmed that government of
Serbia has reached preliminary decision to take part in NPP Belene project. The fnal decision on the partci-
paton was to be reached afer Bulgaria submits ofcial ofer and afer Serbia completes necessary studies.
According to preliminary announcements, Serbia aimed to acquire 5 % stake in the project, which would,
according to the estmatons, require investments of some 300-350 million EUR. China development bank
(CDB) confrmed it was ready to provide loan to Serbia for the purpose of partcipaton in the project for
constructon of NPP Belene. In the beginning of February 2012, Minister of infrastructure and energy of
Serbia Milutn Mrkonjic met with the delegaton of the state-owned Russian nuclear company Rosatom, and
discussed partcipaton of Serbia in the NPP Belene project.
NPP Belene project is in a standstll.

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5.2 Generaton projects
There are several on-going generaton projects in Serbia, but generally they are all marked with slow pro-
gress and delays. For some large projects, documentaton was made 40 years ago, but due to sufcient
generaton in that period, there was no need for their urgent implementaton. Since 1991, there were no in-
vestments in new large power plants or additonal units, except modernizaton and extension of operatonal
life in existng power plants.
EPS has 100% share in all large generaton capacites, i.e. no joint venture agreements were made in the
past, except investment with Croatan power utlity HEP in one unit in TPP Nikola Tesla A. By plans from
several years ago, EPS should invest some 9 billion EUR by 2015. Some 3.5 billion EUR should be provided
from companys income, 2 billion EUR should be invested by strategic partners, while 3 billion EUR should
be provided from loans. Investments are aimed to support sustainable development of the company, where
1 billion EUR should be invested in ecological projects. This amount does not include investments in renew-
able energy sources. Some 5 billion EUR will be invested for new facilites, i.e. 2.5 billion EUR for thermal
capacites, 0.6 billion EUR each for hydro capacites and coalmines and 0.7 billion EUR each for new electric-
ity meters and new distributon networks. Remaining funds will be invested in rehabilitaton and renewal of
existng generaton capacites.
In mid-December 2012, Minister of energy, development and natural protecton Zorana Mihajlovic present-
ed the list of priority projects in energy and environment sectors in Serbia. Overall worth of the projects is
estmated at 7-12 billion euros.
The most important priority projects for electricity generaton are: TPP)Nikola Tesla B3 (700 MW), Radljevo
coalmine, CCGT Novi Sad (450 MW), TPP Kolubara B (700 MW), pump storage plant (PSP) Djerdap 3 (1,200
MW), TPP Kostolac B3 (350 MW), TPP Novi Kovin (700 MW), HPP Velika Morava (150 MW), HPP Ibar (100
MW), HPP Middle Drina (320 MW) and TPP Stavalj (300-350 MW).
The biggest investments started by EPS in 2013 are the purchase of coal mining equipment for Kolubara
Coalmine (181 million euros worth) and renewal of hydropower plant (HPP) Zvornik (70 million euros). EPS
has been preparing the feasibility study for constructon of pump storage plant (PSP) Bistrica (4x170 MW).
The rest of the potental projects are unit 3 in TPP Nikola Tesla, unit 3 in TPP Kostolac B and CCGT power
plant Novi Sad.
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5.2.1 Generaton projects of Oil Industry of Serbia (NIS)
Oil Industry of Serbia (NIS), which is, along with EPS, backbone of energy sector in Serbia. NIS is majority owned
by Russian Gazprom Nef, which purchased 51 % stake in NIS in 2008 for 400 million euros in cash and 500 million
euros in investments. Currently, Gazprom Nef owns 56.2 % stake in NIS, while the government of Serbia owns
29.9 % stake.
As a part of Gazprom`s involvement in Serbia through South Stream Project, Serbia and Gazprom (through NIS)
agreed to build four natural gas fred power plants with overall power output of 450 MW in upcoming period.
The potental locatons are near Belgrade, Novi Sad, Zrenjanin, Kragujevac, Nis, Subotca and Sremska Mitrovica.
New gas fred power plants will be enttled to natural gas at preferental prices enabling them to produce electric-
ity at compettve prices (NIS has 95 natural gas wells in northern Serbia). Although it is not directly involved in
constructon of South Stream pipeline through Serbia, its largest shareholder is Gazprom, which has 51% share in
South Stream Serbia AG, joint venture formed by Gazprom and Srbijagas, for the purpose of constructng South
Stream Pipeline through Serbia.
In additon to gas fred power plants, NIS is also looking in coal generaton and renewable generaton. Company
plans to install 14 cogeneraton facilites with overall output of 25 MWt tll the end of 2014. Beside ongoing Plan-
diste wind project, NIS is also involved in geothermal electricity generaton project Kikinda.
NIS is one of the largest investors in Serbia, and one of the largest contributors to the state budget (8-10%). In the
frst seven months of 2013, NIS paid over 550 million euros for various taxes. Investments during 2013 and 2014
should be 528 and 580 million euros, respectvely. NIS claims that, that since 2009, some 1.5 billion euros was
invested in development projects, in accordance to the privatzaton contract.
In 2012, NIS posted the net proft of some 450 million euros (+20 % increase) and business income of some 2
billion euros. NIS was the most successful company in 2011 and 2012, according to Serbian Business Registers
Agency (SBRA). In a period January-September 2013, the net proft of the NIS Group reached 277 million euros,
which was similar to the same period last year.
5.2.2 Combined Heat and Power Plant Pancevo
Although it was discussed earlier in 2013, frst ofcial announcements from NIS for constructon of combined
heat and power plants (CHPP) power plant in Pancevo, near NIS refnery, came in May 2013. Beside electricity
generaton, power plant will supply heat and steam to the NISs refnery in Pancevo and Petrochemical factory.
In the end of September 2013 in Moscow, General Manager of NIS, Kiril Kravchenko and Director of Gazprom
Energoholding Denis Fedorov signed the Memorandum of understanding for constructon of natural gas fred
CHPP in Pancevo, with 208 MW output. According to MoU, Gazprom Energoholding will own 51 % stake in the
project, while NIS will own the rest (Gazprom Energoholding is 100 % owned by Gazprom). The cost of the project
is estmated at 182 million euros. According to the ofcials of NIS, the plant should be completed by mid-2016.
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The electricity and heat produced in the future power plant will be primarily used by NISs refnery in Pancevo and
petrochemical plant Petrohemija. The rest of the electricity will be ofered to Serbian market, which will be 100
% liberalized from 2015. NIS said that the project would reduce expenses for purchase of electricity for Pancevo
refnery and Petrohemija.
5.2.3 Combined Heat and Power Plant Novi Sad
Idea for constructon/modernizaton of CHPP Novi Sad exists for some tme, and actvites related to this project
were intensifed in recent years. Although there were many interested partes, it seemed that highest chances for
the project to succeed were when NIS expressed interest during April 2013. For Ministry of Energy, this is one of
the priority projects. Beside refnery in Pancevo, NIS also owns refnery in Novi Sad. In recent months, it seems
that focus has been placed on power plant in Pancevo but idea for power plant in Novi Sad is not abandoned.
NIS plans to invest 100 million dollars in modernizaton of Novi Sad Refnery.
Project for CHPP Novi Sad envisages modernizaton of existng and constructon of new unit in existng CHPP Novi
sad. In the beginning of 2009, the government announced it would publish a tender for constructon of a new
CCGT power plant in Novi Sad. EPS expected that the project will be jointly developed by EPS, municipality of Novi
Sad and foreign strategic partner, which will have the majority stake in the project. EPS will invest existng facility,
while municipality will provide land and necessary infrastructure. Strategic partner should invest 250 million EUR
for constructon works.
On July 6 2009, EPS and municipality of Novi Sad have signed a contract for establishment of a joint venture
company called Energija Novi Sad (ENS). According to the contract, ENS will be involved in modernizaton of CHPP
Novi Sad and constructon of a new Combined Cycle Gas Turbine (CCGT) plant. ENS will be an independent com-
pany and it will sell electricity to EPS and heat to city of Novi Sad.
On October 8 2009, ENS has published public invitaton for leters of interest for this project. At that point, the
cost of the project was estmated at 250 million euros. ENS, EPS and municipality of Novi Sad will invest existng
CHPP Novi Sad in new joint venture, while future strategic partner will acquire a majority stake through recapi-
talizaton. The future partner, apart from providing funds for the project, should have experience in managing
and building similar facilites. The deadline for leters of interest was set in December 1, 2009 and 9 companies
expressed their interest for this project.
But, during 2010, only four companies purchased tender documentaton: Russian Optma Group, Italian Edison,
Greek PPC and Slovenian HSE. Tender was opened untl September 30, and in December 2011, EPS has confrmed
that the consortum of companies from Russia, Slovakia and Greece submited the only bid in the tender for
modernizaton and upgrade of existng CHPP Novi Sad. However, EPS said that technical part of the bid was ac-
ceptable, but the fnancial part of the bid was inadequate due to high ofered price of natural gas.
On April 24 2012, joint venture company Energija Novi Sad (ENS), on one side, and the consortum of Greek
Metka, Slovak Grafobal Group Energy (GGE) and Optma Energostroi from Russian Federaton, on the other side,
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signed the Protocol on startng the negotatons for signing the joint venture agreement for modernizaton of
CHPP Novi Sad. The protocol refered to reconstructon of existng facilites in CHPP Novi Sad (200 MW) and con-
structon of new CCGT unit. The modernized CHPP Novi Sad would have electricity output of 450 MW and heat
output of 300 MW. The cost of the project was expected to reach 320 million euros.
The efciency of the new plant will be 80 % compared to the current rate of 30 %. By original plans, the plant was
to be built in cooperaton with strategic partner by 2012. The future unit should produce some 3 TWh of electric-
ity and some 840 GWh of heat energy for the city of Novi Sad (some 80 % of the citys needs). The plant should
be connected to an existng natural gas network. The studies showed that constructon of a new unit should last
three years. But, project went into standstll.
During April 2013, CEO of NIS, Kiril Kravchenko, had a meetng with Minister of energy, development and natural
protecton Zorana Mihajlovic and GM of EPS, where the main topic of a meetng was the restart of the project
for constructon of the CHPP Novi Sad. Earlier in April, NIS has asked for help from the Minister in reaching the
agreement with Power utlity of Serbia EPS regarding the development of the project. Details were not disclosed,
and since then, there were no ofcial announcements related to this project.
The existng Combined Heat and Power Plant (CHPP) Novi Sad has 200 MW of electricity output. The study made
by Energoprojekt showed that constructon of a new power plant on the same site is more proftable than mod-
ernizaton of the existng one. But, since the existng plant is vital for providing the heat for the city of Novi Sad
and cannot be out of operaton for two years constructon period, EPS recently decided to upgrade the existng
one.

5.2.4 Thermal Power Plant near Kovin
During September 2013, President of Serbia Tomislav Nikolic met the General Manager of NIS and discussed fu-
ture projects of NIS. During that occasion, plans for constructon of 700 MW thermal power plant near Kovin was
also discussed.
Old TPP Kovin project refers to constructon of 300-600 MW power plant and lignite mine with estmated reserves
of 276 million tons and exploitable reserves of 176 million tons. The project is planned to be developed through
public private partnership, and it is listed within 15 generaton project with highest priority by Ministry of Energy,
Development and Environmental Protecton. The project is the part of Strategy of energy development of Serbia
related to Vojvodina province.
The project in Kovin has been initated by the government of Serbia 15 years ago by opening of the experimental
underwater mine. In 2007, the company Energy Consultng & Engineering has won lignite exploraton contract
and the company has estmated abovementoned lignite reserves.
In the frst week of May 2010, in the premises of Chamber of commerce of Serbia, Energy Consultng & Engineer-
ing and LMBV Internatonal signed a Memorandum of understanding regarding environmental projects related
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to the constructon of lignite mine and TPP near the city of Kovin. One of the important parts of the project is
environmental protecton, having in mind that future lignite mine should be spread near the protected natural
resort Deliblatska pescara, Danube River and sources of drinking water.
The company LMBV Internatonal, owned by Federal Ministry of Finance of Germany, has already cooperated
with EPS in several projects. One of the goals of the abovementoned MoU is turning the wasted lignite into com-
mercial products. Problems in the project could be related to exploraton and exploitaton rights. NIS and one
Bulgarian company, which made the study on coal reserves in Kovin coalmine, were granted approvals for startng
the exploraton works.
The coalmine and the future TPP will be located near sources of fresh water, within the defensive belt between
Kovin and Danube River. However, some experts said that water polluton would be minimal. Kovin Coalmine is
unique in the World in terms of coal producton, having in mind that coal is being excavated 40 meters under the
level of Danube River. In this moment, Kovin Coalmine produces some 180,000 tons of coal per year through the
special underwater technique. The coalmine should be enlarged on the surface, where the TPP should be built.
5.2.5 Thermal Power Plant Kolubara B
The project should be jointly developed by EPS and Italian Edison. TPP Kolubara B will be lignite-fred plant
and it will be replacement capacity for several older TPPs in Serbia. New power plant will have 750 MW out-
put, while overall cost of the project is estmated to around 1 billion EUR.
The constructon of TPP Kolubara B has started in 1988, but it was stopped due to lack of funds. In June 2011,
EPS and Edison signed the preliminary agreement for constructon of TPP Kolubara B, since Edison won in
the tender for strategic partnership and it proposed the constructon of two 375 MW units. According to
Edisons proposal, EPS should own 36.4 % stake in the future plant, which is the worth of already installed
equipment and carried out works. EPS has already invested some 300 million EUR in the project.
In the beginning of May 2012, government handed over the leter of support to EPS and Italian Edison for
the development of the TPP Kolubara B. Project fnance manager of Edison said that the next step in the
project would be establishment of joint venture company and preparaton of the feasibility study, in order
to start the project during 2013. According to original plans, the TPP Kolubara B should be put in service in
2017. European Bank for Reconstructon and Development (EBRD) has entered the fnal phase for approving
the 400 million euros loan for the project.
Partly constructed TPP Kolubara B is located around 40 km southwest from Belgrade. It was predicted to be
a combined cycle power plant, producing both thermal and electric energy. Thermal energy was planned to
be delivered to Belgrade and be used for district heatng. By original project, power plant would have two
350 MW units.
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The plant is constructed in the close vicinity of the open-pit-mine Tamnava-West Field, from which it will
be supplied with coal. The constructon started in 1988, and a part of the equipment has been contracted
and partally delivered (95% of the imported boiler (Canadian Combuston and local Minel Kotlogradnja),
steel supportng frame, generator transformers and generators). Civil and design works are also partally
contacted and implemented. About 40% of the estmated investments have been implemented. By that es-
tmaton, 300 million EUR have been spent into constructon and equipment. For completon of this project
it is necessary to invest additonal 540 million EUR for constructon completon and around 200 million EUR
for coal mine. According to some estmaton, TPP will have a closed cooling system. The problem lies in the
fact that the delivered equipment is considered as old fashioned, and that the part of already invested 300
million EUR must be reinvested. Power plant is expected to be fnished in 2017 at earliest, and would be
built in accordance to EU standards that will be in power in 2016. The TPP will have older technology so its
efciency will be 35 %
During September 2013, several media recently announced that EBRD is not interested in funding the con-
structon of TPP Kolubara, although ofcial announcement has not been published by EBRD. Commentng
the recent news, deputy Minister of energy, development and natural protecton Dejan Trifunovic said that
the Ministry questons the proftability and sustainability of the project, especially in terms of price of elec-
tricity and environmental risks.
It is estmated that TPP Kolubara B will need at least 6 million tons of coal for one year of operaton.
5.2.6 Thermal Power Plant Nikola Tesla B, new unit
Project envisages constructon of new, 3rd unit in existng TPP Nikola Tesla B, with 700 MW output. But, dur-
ing tender procedure in 2011, none of the eligible candidates submited bid. Government later announced
that the project could be developed through interstate agreement, i.e. without publishing the tender, in or-
der not to waste tme. During January 2013, Minister Mihajlovic stated TPP Nikola Tesla B3 project as priority
project in 2013.
In the end of October 2011, EPS and consortum of Chinese companies, the China Environmental Energy
Holdings (CEE) and Shenzhen Energy Group (SEC) have signed Protocol for development of projects in energy
sector in Serbia. The protocol partcularly refered to development of unit 3 (700 MW) in TPP Nikola Tesla B
and opening of the Radljevo coalmine. Overall cost of the project was estmated at over 2 billion EUR.
In September 2012, EPS and German RWE have signed Memorandum of Understanding on strategic co-
operaton. Part of the MoU referred to the development of TPP Nikola Tesla B3. According to MoU, in 1.2
billion euros would be invested in new unit (700 MW) in TPP Nikola Tesla B. Several days afer signing the
MoU, Minister of energy, development and environmental protecton confrmed that RWE should build unit
3 in TPP Nikola Tesla B and it should develop Radljevo coalmine. In return, Serbia should deliver the part of
electricity produced by the future unit to the RWE, Minister said.
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According to current estmatons, the constructon works in TPP Nikola Tesla B could start in 2014, at earliest.
The constructon works should last 4-5 years. The new unit should be independent electricity producer and
it will sign electricity sale agreement with EPS.
Existng TPP Nikola Tesla B has two 620 MW units, with available output of 1160 MW and annual generaton
of around 7 500 GWh. TPP Nikola Tesla B is located near the older TPP Nikola Tesla A, which has 1500 MW
output, but lower annual generaton. It is the largest thermal generatng capacity in Serbia.
New 700 MW unit in TPP Nikola Tesla B will have a supercritcal boiler so that its efciency will be over 40%.
EPS share in this project should be close to 200 million EUR (it includes the worth of the land, infrastructure
and 60 million EUR of cash investments).
5.2.7 Thermal Power Plant in Pester plateau
In September 2010, Czech Energy-economy fund has expressed interest for constructon of 320 MW TPP in
Pester plateau. The project should be developed in cooperaton with the government of Serbia and Sjenica
municipality. The cost of the project is estmated at 700 million EUR, and the TPP could be built in the next
10 years. According to estmatons, coal reserves in Pester stand at 1 billion tons. In this moment, coalmine
Stavalj, in Sjenica municipality, produces only 70,000 tons coal per year.
5.2.8 Thermal Power Plant Stavalj
The future TPP should be built near coalmine Stavalj, on Pester plateau near town of Sjenica. The cost of the
project is estmated at 700 million euros. During mid-December 2012, Minister of energy, development and
natural protecton Zorana Mihajlovic stated TPP Stavalj project as one of priority energy projects in Serbia.
Recently, minister announced that the government the government has been negotatng with two investors
interested in TPP Stavalj.
On 9th of May 2012, representatves of the Ministry of Energy, Development and Environmental Protecton
and representatves of Czech company Alta signed the statements of business and technical cooperaton
related to renewal of coalmine and constructon of TPP Stavalj. Czech company VDO would also take part in
the project. The project includes constructon of 350 MW TPP on Pester plateau (500 million euros cost) and
renewal of the coalmine Stavalj (150 million euros cost). According to the studies made by Alta and VDO,
lignite reserves in Stavalj stand at 70 million tons. According to domestc studies, reserves stand at around
200 million tons, and it is the biggest underground coal deposit in Serbia. Annual producton could reach
2.3 million tons at least, and the coalmine should provide supplies to the TPP Stavalj for period of 50 years.
The constructon of the TPP should last between 3 and 5 years, during which 3,000 people should be em-
ployed.
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5.2.9 Thermal Power Plant Kosovo RE
Project for constructon of third TPP in Kosovo initally envisaged constructon of 2 000 MW TPP. In July 2009
government of Kosovo ofcially adopted the decision for constructon of new TPP, with 1 000 MW output.
The cost of the project is estmated at 3.5 billion EUR. On the same occasion, government announced de-
commission of the TPP Kosovo A in 2015, and separate tender for modernizaton of TPP Kosovo B. New TPP
Kosovo C is also addressed as TPP Kosovo RE.
The future investor will be obliged to revitalize the old units in TPP Kosovo A and to open the new coalm-
ine in Sibovc. The old TPPs in Kosovo province were built during 1960s and 1980s. The previous researches
showed that coalmine Sibovc could supply existng and future power plants in Kosovo.
Procedure:
Pre-qualifcaton process for 2 000 MW opton was fnished in November 2006, and four consortums
were qualifed for bid submission: RWE Power AG (Germany), ENEL S.p.S / SENCAP S.A (consortum: Italy /
Greece,USA), CEZ / AES (consortum: Czech Republic / USA), EnBW / Washington Group Internatonal (con-
sortum: Germany / USA). It was expected that in second half of 2007 bids submission will happen and that
afer bids submission winner will be announced. In Mid July 2007, RWE Power AG decided to retreat from
the project. Two months later, consortum EnBW / WGI also decided to retreat from the tender. Before of-
fcial adaptaton of the project in July 2009, it was stated that future investor will be obliged to revitalize old
units of TPP Kosovo A.
In March 2010, on prequalifcaton tender, four companies bids were selected as eligible to partcipate in
future tender: consortum Adani Power (India) and Adani Global (Indonesia), consortum of AES (USA) and
Demir Export (Turkey), Park Holding (Turkey) and consortum of PPC (Greece) and Contour Global (USA).
Shortly afer, CEZ decided to step out from the procedure. Afer selecton of potental bidders, there were no
actvites related to this project.
There are no recent actvites related to this project.
5.2.10 Thermal Power Plant Kostolac B
Beside revitalizaton and capacity increase of existng units, project also envisages constructon of new unit
with output of 350 MW and elargement of coal mine. Project is on-going.
Kostolac TPPs are second by size thermal power generaton complex in Serbia. There are two TPPs, TPP Kos-
tolac A (280 MW) and TPP Kostolac B (700 MW), which is the youngest TPP in Serbia (constructed in 1990),
and they are operated by subsidiary of EPS, called TPP and mines Kostolac. TPP and mines Kostolac has
signed contract with China Natonal Machinery & Equipment Import & Export Corporaton (CMEC), for the
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frst stage of revitalizaton of TPP Kostolac B, which is is on-going. Second phase envisages constructon of
new unit and enlargement of coal mine Drmno.
Overall worth of the modernizaton project in TPP Kostolac is estmated at 1.06 billion dollars, while contract
for constructon of new unit is 715 million dollars worth. The 85 % of the project will be funded through the
loan provided by Chinese ExIm Bank. The maturity of the loan is 15 years (grace period included) and interest
rate is 3 %. The loan agreement was signed in the end of 2011. The government of Serbia has allocated 609
million dollars in the budget for the loan guarantees, for constructon of new unit, for which contract could
be signed by the end of the year.
Modernizaton of TPP Kostolac B has started in April 2012. The project for modernizaton will include renew-
al of mills and reconstructon of electrical flters, modernizaton of the boiler, steam lines, electrical supply
and control systems. The fue gas desulphurizaton (FGD) units will be installed on both units. The partners
from China will design, build, deliver and install part of the equipment for the FGD units.
The frst phase of modernizaton of TPP Kostolac B includes upgrade of power output of two units, construc-
ton of FGD units, constructon of river port on Danube River and railway. Overall cost of this phase of the
project, which should be completed in period of 30 months, is 344 million dollars. In December 2012, afer
eight-month renewal, unit 2 (350 MW) in TPP Kostolac B was put in service. The cost of this phase reached
90 million euros and it included works on boiler and electrical flters. Output of the unit was increased by 8.5
GWh (7.5%), and operatonal life prolonged by 150,000 hours.
Regarding 2nd phase, on November 20 2013, EPS and CMEC signed the 715 million dollars contract for con-
structon of unit 3 in TPP Kostolac B and enlargement of nearby Drmno coalmine. The contract marked the
start of the second phase of the modernizaton of TPP Kostolac B. The new unit will have power output of
350 MW and it should be put in service by the end of 2019. In the same tme, the annual capacity of Drmno
coalmine will be increased from 9 to 12 million tons of lignite. New unit will employ 300 people. Construc-
ton works should start in the beginning of 2014, afer the signing of loan agreement for the second phase
of the project.
According to the draf budget for 2014, the state of Serbia will provide guarantees for 608 million dollars loan
for the project, which will be provided by Export-Import Bank of China. The loan maturity will be 10 years,
with fxed interest rate of 3 % and grace period of fve years.
The unit 3 should be built in period of 58 months afer signing the contract, while the coalmine should be en-
larged and modernized in period of 42 months. New unit should spend some 3 million tons of coal per year.
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5.2.11 Thermal Power Plant Despotovac
During April 2013, Turkish company Teknotes and Despotovac municipality signed the Agreement on long-
term business and investment partnership, which envisages constructon of TPP with power output of 320
MW in the next two and half years. The future TPPs should be built at the site of exhausted coalmine Resava
near Despotovac. In June 2013, Teknotes signed the pre-contract agreement for constructon of this TPP. The
cost of this project is estmated at over 500 million euros.
The future TPP should produce 2 TWh of electricity per year, where TPP should earn some 100 million euros
from electricity sales annually. The strategic partner in the project will be the Public company Coalmine Re-
savica, which will deliver the coal for the plant.
5.2.12 Cogeneraton facilites
In the frst half of September 2013, Ministry of energy, development and natural protecton and Italian
company Gemo signed the Memorandum of understanding on potental investment of 100 million euros for
constructon of cogeneraton facilites in Serbia. The projects should be developed through public-private-
partnership, and their implementaton will depend on the analyses conducted by Gemo. Italian company
expressed plans to build cogeneraton facilites in cooperaton with Clinical center of Serbia, Nikola Tesla Air-
port, Public utlity Novi Sad Plant, City hospital in Zrenjanin and Public heatng utlity in Pancevo. The overall
electricity and heat output of the facilites envisaged by MoU stands at 75 MW and 65 MW, respectvely.
5.2.13 Hydro Power Plants on Ibar River
The development plan for HPPs on Ibar River dates from 1996, and it envisages constructon of ten (initally
nine) HPPs, each with 15 MW output, which should be built between cites Raska and Kraljevo. Constructon
of the HPPs is expected to start in 2013.
In mid-2009, EPS and Italian company SECI Energia signed an agreement for making the analyses and fea-
sibility studies for constructon of HPPs on Ibar River. At that point, the plan was to construct 9 HPPs, as it
was predicted by the old development plan. Feasibility study was completed in February 2010. In the end of
April 2010, in Belgrade, former General Manager of EPS, Dragomir Markovic and the president of Seci Energy
Gaetano Maccaferri signed the Protocol for constructon of small HPPs on Ibar River. The Protocol refers to
constructon of ten small HPPs with an overall power output of 103 MW and annual producton of 420 GWh.
The worth of the project is estmated at 285 million EUR.
The feasibility study showed that constructon of HPPs on Ibar River is justfed and economically feasible.
According to plans, electricity produced from future HPPs will be exported to Italy at privileged prices. Afer
some local communites opposed the project, Ministry of Energy, Development and Environmental Protec-
ton said that future cascade HPPs would not harm natural environment.
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In the beginning of July 2010, EPS and SECI Energia signed the agreement for establishment of joint venture
company Ibarske Hidroelektrane (IH). The joint venture company IH will be involved in designing, construc-
ton and operaton of ten HPPs on Ibar River.
In the end of October 2011, minister of infrastructure and energy of and minister of economic development
of Italy Paolo Romani signed the agreement on cooperaton in energy sector.According to the agreement,
Italy guarantees to purchase all electricity produced from jointly developed power plants, which will use
renewable energy sources (RES). The purchase price was set at 155 euros/MWh. The agreement will refer to
purchase of electricity produced by the future hydropower plants (HPPs) on Ibar River and in middle part of
Drina River, which will be built in cooperaton with Italian Seci Energia.
Italian company will provide entre funds for the project and it will be granted 51 % stake in IH, while EPS will
own the rest. The cost of the project is estmated at 285 million EUR. Entre project should be completed in
2016.
5.2.14 Hydro Power Plants on Drina River
There are two hydro projects on Drina River with recent actvity: Upper (Gornja) Drina and Middle (Sred-
nja) Drina. There is also Lower (Donja) Drina project but it is less atractve comparing to previous two
projects. Both project were expected to start during 2013.
Upper Drina project was planned to be developed by the joint venture company of Power utlity of Repub-
lic of Srpska (ERS) and EPS, for which MoU was signed in February 2008. During March 2009, some media re-
ported that German RWE could obtain majority stake in the project, while the rest would be equally owned
by ERS and EPS. That rumour was denied by the Ministry of Industry, Energy and Mining of the Republic of
Srpska. But, in November 2009, EPS and RWE signed a Memorandum of Understanding regarding construc-
ton of several power plants, where Gornja Drina project was included. New project for Gornja Drina
which will be developed with RWE slightly difers from the one which was to be developed with EPS. EPS
never objected to new agreement signed with ERS and RWE where it does not have share, and remained
focused on Middle Drina project.
Middle Drina project will most probably be consisted of HPP Rogacica (135 MW), HPP Tegare (110 MW)
and HPP Dubravica (122 MW). However, exact number of HPPs and overall power output will be known afer
completng the necessary feasibility studies. Overall output of the future HPPs should be over 300 MW, with
overall annual output of 1.2-1.5 TWh. The overall worth of the investment is estmated at 820 million EUR.
Middle Drina project is developed by joint venture between EPS, ERS and Italian Seci Energia. In September
2010, Power utlity of Serbia (EPS) and ERS signed the cooperaton protocol for preparaton of technical
documentaton for future HPPs in middle part of Drina River. The protocol referred to joint funding of fea-
sibility study and environmental impact study. Later, in February 2011, Serbian EP and Italian Seci Energia
have signed the preliminary cooperaton agreement for the project. Finally, in September 2011, ERS, EPS
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and Seci Energia have signed preliminary agreement on strategic partnership in the project for development
of hydropower system (HES) Middle Drina. Seci Energia will hold 51% stake in the project, while ERS and EPS
will hold remaining 49%. Seci Energia would secure subsidies for the project from the government of Italy,
where electricity from the future system should be exported to Italy at the price of 155 EUR/MWh in period
of 15 years.
5.2.15 Hydro Power Plant Djerdap 3
The plans for constructon of pump storage HPP Djerdap 3 were developed in 1970s. According to original
plans, during the frst stage, HPP Djerdap 3 will have power an output of 600 MW, while annual producton
should reach 2 TWh. When the HPP is fnally completed, its output should reach 2 400 MW, while annual
producton should reach 7.6 TWh. Accumulaton lake should be able to store 850 GWh of electricity. The cost
of the project is currently estmated at 4-6 billion EUR.
In June 2009, Ministry of Energy and Mining of Serbia confrmed it had started preliminary talks with Chi-
nese companies regarding the constructon of HPP Djerdap 3. On the other hand, ofcials from EPS said they
had no knowledge of potental partcipaton of Chinese companies in the project. Later, in mid 2010, Chinese
Guodian Corporaton (GC) expressed interest for the project.
In mid October 2009 in Germany, EPS and German RWE signed a Memorandum of Understanding regarding
constructon of several HPPs in Serbia, where HPP Djerdap 3 was included. During January 2010, EPS an-
nounced beginning of preparaton actvites related to these two projects. In Mid 2010, general manager of
EPS confrmed that EPS and RWE have initated feasibility study for HPP Djerdap 3 and HPPs on Morava River.
During recent meetng in Bucharest, Romania opposed to HPP Djedap 3 project claiming that the project
needs Romanian approval. Although HPP Djerdap 3 and its accumulaton lake are completely located on
the territory of Serbia, Romanian standpoint is that pumping water from Danube to accumulaton of HPP
Djerdap 3 would afect efciency of two existng and jointly operated HPPs on Danube River, Djerdap 1 and
Djerdap 2. In order to avoid disputes with Romania, with which it has long-term agreement for joint opera-
ton of HPPs on Danube River, Serbia obliged itself to make new project for the HPP, which would take some
two years.
EPS is planning to restart this project, but with smaller output. By schedule of EPS, in 2013 company should
start the frst phase of the project for constructon of pump storage HPP Djerdap 3. The cost of the frst phase
of the project is estmated at 400 million euros.
During March 2013, Minister of energy, regional development and natural protecton announced that gov-
ernment of Serbia could sign an agreement for constructon of HPP Djerdap 3 with investors from United
Arab Emirates and China.
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5.2.16 Hydro Power Plant Bistrica
The project envisages constructon of pump storage HPP, with four 170 MW units (680 MW output). HPP
Bistrica will be built near the existng HPPs Uvac, Bistrica and Potpec. The cost of the project is estmated at
600 million euros and the constructon works should last six years.
In 2011, EPS announced that HPP Bistrica should be developed by EPS alone, without including strategic
partners. But in March 2012, EPS and consortum of Canadian Lavalin and China Nuclear Power Engineer-
ing (CNPE) have signed the Memorandum of understanding for this project. The MoU includes preparaton
of justfability study, environmental impact study and preparaton of fnancial plan for constructon of PSP
Bistrica.
A year later, Minister of energy, regional development and natural protecton announced that government
of Serbia could sign a contract for constructon of PSP Bistrica with Canadian company SNC-Lavalin in 2014.
The contract will be signed afer ratfcaton of the agreement with the Canadian Chamber of Commerce.
5.2.17 Hydro Power Plants on Lim River
The project envisages constructon of two HPPs, with overall output of 59 MW, and untl recently it was
developed by Canadian based company Renewable energy Ventures (REV) (subsidiary of Reservoir Capital).
HPPs Brodarevo 1 (26 MW) and Brodarevo 2 (33 MW), will be built on Lim River, near city of Prijepolje. The
overall annual producton of HPPs is estmated at 230 GWh. The cost of the project is estmated at 146 mil-
lion euros. Representatves of NGOs in Prijepolje municipality several tmes protested against the construc-
ton of new HPPs claiming they will harm the environment.
In March 2011, REV has announced constructon start for summer 2011. But soon afer, In April 2011, REV
announced it gave up the project. REV said that its business units in Prijepolje and Brodarevo would be
terminated due to unfavourable development of the project, especially due to inability to solve legal and
property issues with landowners. REV has invested some 7.5 million EUR in preparaton works, but due to
high land prices in Lucice village, where the main dam should be built, it was decided to cancel the project.
But, government reacted and said that the problems would be resolved, and that obstacles for REV would
be removed. Several days later, company announced that development of the project would be contnued
as scheduled.
IIn June 2013, REV said it has obtained the positve opinion on the Environmental impact assessment (EIA)
for hydropower plants Brodarevo 1 and Brodarevo 2. The approval of EIA will enable company to obtain the
constructon permit in several months and to start the implementaton of the project this autumn, ofcials
from REV said.
In the second half of July 2013, Administratve Court of Serbia reached the decision on annulling the energy
license for constructon of HPPs Brodarevo 1 and Brodarevo 2. The license was revoked at the request of
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several environmental NGOs from Serbia, who claimed that the project was not in line with ESPO conven-
ton. NGOs also demanded that they should take part in the procedure for issuing the energy license for the
project. Commentng the recent development, REV said that that the Court verdict was ridiculous and an-
nounced fling the appeal.
5.2.18 Hydro Power Plant Morava
In the end of May 2012, EPS and German RWE Innogy signed the contract for establishment of joint venture
company for constructon of at least fve HPPs on Morava River. The overall power output of the future plants
will be 150 MW and the cost of the project is estmated at 352 million euros. New company, called Moravske
HPPs, will be independent electricity producer in Serbia. RWE will own 51 % stake in new company, while EPS
will own the rest.Study made by EPS and RWE proved the feasibility of the project.
The constructon works should start in 2014 or in 2015 and the frst HPP should be operatonal in 2017 or in
2018. The fve HPPs should produce some 650 GWh of electricity per year. Company is currently involved in
obtaining necessary permits.
5.2.19 Hydro Power Plant on Sava River
In the end of June 2013, Turkish company Teknotes signed the Memorandum of understanding with the
Pecinci municipality in Vojvodina province regarding the constructon of 98 MW HPP on Sava River. Teknotes
plans to invest 300 million euros in the project.
5.2.20 Renewal of Hydro Power Plant Zvornik
In July 2012, EPS has published the internatonal tender for delivery of equipment and services for the
purpose of the renewal of HPP Zvornik. The deadline for bids was set to September 15. Overall cost of the
renewal was estmated at 95 million euros. It will be funded by the 70 million euros loan provided by Ger-
man KfW Bank, while the rest will be provided by EPS from its own sources. The renewal is aimed to prolong
operatonal life of HPP Zvornik by 25-35 years. HPP Zvornik was put in service in 1955.
The renewal will include replacement of the turbines, generators, block transformers, substaton and mod-
ernizaton of the control system. The overall power output of the HPP will be increased up to 130 MW. In the
same tme, the annual electricity producton will be increased by 70 GWh, i.e. annual producton should be
increased up to 550 GWh.
In the end of June 2013, EPS and Austrian Voith Hydro signed the contract on renewal of HPP Zvornik (96
MW). The worth of the contract is 63.7 million euros. Two units in HPP Zvornik, which are in operaton for
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60 years have been manufactured by Voith. The 70 million euros loan for the renewal of HPP Zvornik was
provided by German KfW Bank.
The renewal will increase the power output of the plant by 34 MW, while annual output will be increased by
70 GWh up to 550 GWh. In the same tme, the operatonal life of the plant will be increased by 30-40 years.
5.3 Transmission projects
EMS plans to invest 50-70 million euros in the next 5-7 years. The funds will be invested for development of
transmission grid, where the main projects will be replacement of 220 kV power lines with 400 kV lines in
western part of Serbia. The cost of this project is estmated at 61 million euros. The most important part of
this project will be replacement of power lines between pump storage hydropower plant Bajina Basta and
400 kV substaton in Obrenovac.
The feasibility study for this project is under way, and the project should be completed by 2015. EMS said
that this project might be funded by European Bank for Reconstructon and Development (EBRD) and Ger-
man KfW Bank.
Among other project, EMS is currently involved in constructon of 400/100 kV substaton in Vranje. Overall
cost of the project is 19 million euros, where EU will donate 15.5 million euros, and the rest of the funds
will be provided by EMS. The constructon of Vranje substaton was preceded by the constructon of 400 kV
interconnecton power line from Nis toward Macedonian border, which was prerequisite for constructon of
Vranje substaton and further enlargement of Leskovac substaton (upgraded from 220 kV up to 400 kV volt-
age). Vranje substaton should be put in service in the frst half of 2014.
EMS also considers constructon of new interconnecton power lines toward Montenegro, Bosnia and Herze-
govina, Romania and Macedonia.
5.3.1 Ongoing projects
Serbia Macedonia (Nis Stp)
We characterize this project as on-going, since only Serbian secton of the power line is completed. EMS has
fnished works on its secton of the power line on 8th of December 2011. Serbian part of the interconnecton
is 140 km long, where frst secton Nis Leskovac is 40.5 km long and second secton, Leskovac Macedoi-
nan border, is 100 km long. European agency for reconstructon (EAR) and EMS funded this project. Overall
cost of the Serbian part of the interconnecton is 31 million EUR, where 27 million EUR was donated from
EAR, and remaining funds were provided by EMS alone. When completed, Serbia Macedonia NTC will be
increased for sam 250 MW. According to latest announcements (October 2010), EMS expects that Serbian
part of the interconnecton would be fnished during 2011.
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The constructon works have lasted for three and a half years. The power line has OPGW cables, which cre-
ated telecommunicaton network for this part of the country. The constructon works were carried out by
local companies Energoprojekt, ABS Minel and Energomontaza. The project has also created conditons for
further enlargement of 400 kV Leskovac substaton (upgraded from 220 kV) and constructon of new 400 kV
substaton Vranje 4.
The project is supported by EU. The power line will be important for transmission in Southeastern Europe,
especially for increasing imports of Greece, but will also strengthen local electricity grid
In December 2012, EMS has put in service the secton of the 400 kV interconnecton power line between
Leskovac and Macedonian border. The secton of the power line between Leskovac and Macedonian border
will be in no-load operaton, due to fact that Macedonia stll did not complete its secton of the interconnec-
ton power line. Nevertheless, the power line in no-load operaton is expected to improve voltages in this
part of the country, EMS said.
5.3.2 Recently fnished project
Serbia Bosnia and Herzegovina (Ugljevik Sremska Mitrovica)
In April 2006, new 400 kV line between Thermal Power Plant Ugljevik in Bosnia and Herzegovina and Srem-
ska Mitrovica in Serbia was put in operaton. This power line is contributng with signifcant relaxaton of
400 kV line. Ernestvnovo (Croata) - Sremska Mitrovica (Serbia). Average achieved power fow on new line is
around 170 MW in directon to Bosnia and Herzegovina.
5.3.3 Announced projects
Serbia Romania (Pancevo Resita)
EMS also plans to build new 400 kV interconnecton power line toward Romania, from Pancevo to Resica
(Romania). This partcular power line will be important for constructon of wind farms in Vojvodina province.
The justfability study, general design as well as environmental impact study for this project was completed,
and the exact 80 km route of the power line on Serbian soil was set. According to plans, the power line
should be completed in 2015.
The agreement for constructon of this power line might be signed in 2013, and the line could be put in ser-
vice two years later. The cost of the Serbian part of the project is estmated at 24 million euros. The funding
of the project was not secured yet. In July 2011, EMS and Romanias counterpart Transelectrica (TEL) agreed
to speed up constructon of the future interconnecton. Both companies gave the priority status to this pro-
ject.
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Serbia Various projects
In March 2009, Serbia and Italy have signed a Protocol on cooperaton in energy sector. The protocol envis-
ages joint investments in Serbian electricity grid, where main priorites would be constructon of new 400kV
links toward Romania, Macedonia and Montenegro. Strengthening of the grid is necessary due to undersea
cable which will be built between Montenegro and Italy.
Serbia Montenegro (Bajina Basta Pljevlja)
The draf feasibility study for this project is initated, but the route has not yet been set. EMS hopes that
projects for new interconnecton power lines will be able to atract EU funding. This project is part of the
Trans-Balkan corridor, which includes the transmission power lines between Obrenovac and Bajina Basta
and toward Montenegro and Bosnia and Herzegovina.
Serbia Bosnia and Herzegovina (Bajina Basta Visegrad)
The draf feasibility study for this project is initated, but the route has not yet been set.
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Chapter 6: Renewable energy
6.1 Introducton and feed-in tarifs
The most of the Serbias theoretcal RES potental is in biomass (49 %). The rest of the potental is in large
HPPs (27 %), solar energy (13 %), wind energy (4%), geothermal energy (4 %) and small HPPs (3 %). The
exploitable RES potental in Serbia is estmated at 6 million toe per year, i.e. 3.3 million toe from biomass,
1.7 million toe from hydropower, 200,000 toe from geothermal sources, 200,000 toe from wind power and
600,000 toe from solar power. In this moment, Serbia uses some 2 million toe of its RES potental: 1 mil-
lion toe from biomass (mostly frewood) and 0.9 million toe from hydropower sources. Renewable energy
actvites in Serbia became more intensive from December 2009, when feed-in tarifs were adopted. Legal
procedure for obtaining all necessary permits is stll long lastng, but it is being simplifed.
In December 2009, Serbia has adopted feed-in tarifs for electricity generaton, while revisited tarifs were
adopted in 2013:
Type of power plant Feed-in tarif (eurocent/kWh)
Small Hydro Power Plant 7.4 - 13.7
Biomass Power Plant 8.2 - 13.8
Biogas Power Plant 12 - 16
Landfll Gas Power Plants 6.7
Solar Power Plants 16.3-19.8
Wind Farms 9.2
Geothermal Power Plants 7.5
Combined Heat/Electricity Power Plants 7.6 - 10.4
Commercial Residue Power Plants 8.5 - 9.2

New Bylaw was adopted, related to producton from RES. The Bylaw prescribes the minimum efciency rate
for producton of electricity in combined power plants as well as the overall maximum installed power out-
put in wind farms and solar plants that could obtain the status of privileged producers. The quota for wind
farms was increased from 450 up to 500 MW, i.e. the frst 300 MW will be enttled to feed-in tarifs untl
2015, while the rest of 200 MW of the quota refers to the wind farms built untl 2020. The solar power quota
was set at 6 MW for solar power plants built on ground and at 4 MW on residental buildings. The new feed-
in tarifs for the frst tme envisaged adjustment of tarifs in accordance to infaton rate in EU once per year.
In accordance with the Bylaw on green energy fee, EPS has implemented RES fee in electricity bills, and it
will be revisited each year. The average monthly bill for households, with average consumpton of 400 kWh,
will be increased by some 0.15 euros due to RES fee. EPS said that funds collected through new fee would be
transferred to power plants that use RES, which are enttled to feed-in tarifs. During 2013, some 10 million
euros should be collected through RES fee. Green energy fee was set to 0.04 eurocent/kWh.
EPS purchases electricity from around 40 privileged electricity producers at feed-in tarifs, which own power
plants with 50 MW of installed output. In October 2011, EPS renewable energy sources was formed, as a
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branch ofce of EPS. The new branch has the head ofce in city of Uzice and it started to operate on January
1, 2012. The new branch within EPS, the 12th, will be in charge for management of all RES projects, for issu-
ing the licenses and approvals, for signing the contracts and for negotatons with investors.
According to the Draf acton plan for RES, Serbia should build some 1 100 MW in RES power plants untl
2020. Overall investments in abovementoned projects are estmated at 2 billion euros. The Acton plan en-
visages the increase of the share of RES power plants in overall electricity producton from 29 %, in this mo-
ment, up to 37 % untl 2020. In the same tme, Serbia wants to increase the share of green energy in overall
energy consumpton from 21.2 % up to 27 % untl 2020.
Cooperaton of EPS with other investors
In March 2012, EPS and consortum of Spanish companies have signed Memorandum of understanding
regarding electricity producton from RES. The consortum of Spanish companies includes Subco-Biniluca,
Grupo Labaro, Energy Resources, Catalana Investors Pull and Catalana Energy Insttute. EPS and Spanish
companies plan to build small hydropower plants on rivers Ibar and Morava and to build solar parks.
In February 2012, EPS announced that the President of US company New Generaton Power (NGP) Chirinjeev
Kathuria has confrmed NGPs interest for investng in renewable energy sources in Serbia. According to the
press release of EPS, the consortum led by NGP and EPS should sign the leter of intent for constructon of
1,430 MW in power plants. The overall worth of the projects is some 4 billion dollars. The projects should
include constructon of 50 MW in solar parks, 200 MW in biomass power plants, 50 MW in waste fred power
plants, 450 MW in wind farms and 680 MW in large hydropower plants. Kathuria confrmed this in Brussels
in the second half of February, during the debate named Serbia as an investment destnaton.
6.2 Small hydro power plants
There are around 60 operatonal small HPPs in Serbia, and most of them are managed and owned by EPS.
Serbia has made the cadastre of small HPPs 20 years ago. According to the cadastre, potental power output
in small HPPs stands at 450 MW, while annual producton was estmated at 1.55 TWh or some 15 % of overall
electricity producton in HPPs in Serbia. Hydropower potental in small HPPs accounts for 10 % of overall RES
potental of Serbia. By some analysis, small HPPS with power output up to 10 MW could be able to produce
around 4.8% of overall electricity in the country. There are 856 potental sites for small hydro power plants
with a capacity of up to 10 MW
Ofcials from natonal water company Srbijavode believe that hydropower potental could hardly become
Serbias development potental. They said that only 20 % of 850 locatons for small HPPs meet technical
terms, while this percentage is even lower for economic viability. If HPPs were built on every possible loca-
ton, some 2,500-3,000 km of water fows in Serbia would become sewer, Srbijavode warns.
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Till mid 2010, Ministry of Energy and Mining has issued 20 permits for small HPPs with overall output of 53
MW. Small HPPs should be built in municipalites Kursumlija, Crna Trava, Krusevac, Cajetna, Priboj, Uzice,
Arilje, Kraljevo and Zagubica, while wind farms should be built in Bela Crkva, Kovin, Vrsac, Alibunar, Plan-
diste, Indjija, Golubac and Vrsac. There are also several on-going projects for small HPPS with output above
2 MW, but largest number of projects is for small output, up to 500 kW.
EPS is currently in a process of renewing 15 existng and constructon of 7 new small HPPs. EPS plans to
build HPPs Bovan, Celije, Braje, Zlatbor, Parmenac, Selova and Vrutci. In the same tme, existng small HPPs
Radaljska reka, Vrelo, Raska, Seljasnica, Turica, Kratovska reka, Pod gradom, Moravica, Sveta Petka, Sicevo,
Temac, Sokolovica, Gamzigrad, Vucje and Jelasnica will be revitalized.
Current overall output of 15 existng small HPPs is 17.7 MW, while their annual output stands at 55 GWh.
Afer the renewals, their overall power output would be increased up to 23.3 MW and their annual produc-
ton should be increased up to 77 GWh. 23 million euros will be spent for reconstructon of 15 existng small
HPPs.On other hand, overall power output of seven new HPPs will be 13 MW. The cost of the constructon
of eight small HPPs is estmated at 19 million euros. The implementaton of the projects should reduce emis-
sion of CO2 by 60,000 tons per year.
The projects will be funded by EPS itself and by 45 million euros loan provided by the European Bank for Re-
constructon and Development (EBRD). The ofcials from EPS said that the project is developing as planned.
The modernizaton of existng HPPs is being managed by Energoprojekt-Hidroinzenjering, while the con-
structon of new HPPs is being managed by Jaroslav Cerni Insttute.
EPS has been also engaged in preparaton of the technical documentaton for constructon of several other
small HPPs. The company also plans to build HPPs within the water supply system of city of Nis.
Newest small HPP built by EPS is HPP Prvonek, in April 2012. The HPP Prvonek was built on water supply ac-
cumulaton near Vranje. The cost of the project was 1.6 million euros, and the funds were provided by EPS.
HPP has two units and overall power output of 0.9 MW. Its annual producton should reach 2.5-3 GWh, and
the electricity will be sold at feed-in tarifs.
The small HPPs in Serbia are enttled to feed-in tarifs, which vary between 7.4 eurocents/kWh and 13.7
eurocents/kWh, in period of 12 years.
1st public call
IIn February 2013, Ministry of energy, development and natural protecton published the public invitaton
for constructon of small HPPs on 317 sites in Serbia. Overall power output of small HPPs, that should be built
in 17 municipalites across Serbia, is estmated at 110 MW and the overall worth of the projects is estmated
at 120-200 million euros. The partcular HPPs, when built, should produce overall amount of 400 GWh of
electricity.
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In the beginning of July, Ministry of energy, development and natural protecton published the list of the
interested investors for constructon of 213 small HPPs across Serbia. 173 investors submited over 1,400
applicatons for the projects. For 65 ofered sites, there were no interested investors, while 39 sites were
deleted from the list, from various reasons (lack of quality bids, ownership disputes, disputes between mu-
nicipalites ...). For each site, the Ministry has selected three investors, in case if some of the investors decide
to abandon the projects. The Ministry decided to sign tripartte Memorandums of understandings with 91
investors, where 65 of them are from Serbia.
In the end of July, Ministry of energy, development and natural protecton, local municipalites and investors
started signing Memorandums of understanding regarding the constructon of small HPPs. Some 60 MoU
have been signed for constructon of small HPPs in Ivanjica and Arilje municipalites with almost 40 investors.
Ministry believes that the frst small HPPs should be connected to the grid in 2015-2016.
Ministry has announced it would establish special ofce for the investors, which will provide answers, infor-
maton and permits for investments in RES projects, where number of necessary permits and approval will
be reduced from 27 to only 5. For HPPs up to 1 MW of power output, only the consent will be issued and for
HPPs with power output above 1 MW, energy permits will be issued.
2nd public call
In the end of December 2013, Ministry of energy, development and natural protecton published the second
public invitaton for grantng the concessions for constructon of small HPPs. The partcular invitaton is re-
lated to 143 constructon sites in 20 municipalites across Serbia. Estmated power output of partcular HPPs
is 57 MW and the overall investments are estmated at 130 million euros. The deadline in the tender was
set at the end of February 2014, while the memorandums for each locaton should be signed by the end of
May 2014.
Ministry said that potental investors would have less complicated procedures for obtaining the necessary
permits compared to the previous public invitaton. The deadline for obtaining the energy permit was pro-
longed from 6 to 12 months, Ministry said.
Small HPPs on Ibar River
There are two projects for constructon of small HPPs on Ibar River.
First project envisages constructon of 10 small HPPs, with overall output of 103 MW. It is expected that
investment would reach 285 million EUR. Project is managed by EPS and Italian Seci Energia, for which two
companies established joint venture Ibarske Hidroelektrane, in July 2010. It is expected that the project
could be completed in 2016. . According to Law, small HPP is every hydro generaton capacity with output
lower than 10 MW, so some of HPPs in the system would not have ofcial Small HPP status.
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Second project envisages constructon of 6 small HPPs. Overall cost of the project on Lim River is estmated
at 120 million EUR. The power output of single HPP should be 10 MW at most. Project is being developed
by Italian company Lusis&Partners, and constructon of frst two power plants, with joint output of 15.3 MW
should start as soon as company obtains all permits.
Small HPPs on Morava River
This project envisages constructon of 8-9 small HPPS, and it should be developed by German RWE, in coop-
eraton with EPS. There are no additonal details regarding this project. Also, in mid 2009, Austrian KELAG
expressed interest to construct one 10 MW Small HPP on Juzna Morava river, which is part of Morava River.
Small HPPs on Ljutna River
Italian company Hydro-One has expressed interest for constructon of three small HPPs on Ljutna River in
Priboj municipality. Joint output of these power plants would be 2.8 MW, with estmated cost of 4 million
EUR. Municipality and Italian company have signed the contract for constructon of HPPs in the frst half of
April 2009. The separate contract envisaged that Italian company should build another small HPP on Uvac
River.
6.3 Wind energy
According to the feasibility study on wind generaton potentals in Serbia, overall 1,316 MW (over 5 m/s wind
speed) can be installed in wind farms with annual producton of 2.3 TWh. The sites in Serbia with highest
average wind speed are Midzor (with average wind speed of 7.66 m/s), Suva planina (6.46 m/s), Vrsacki breg
(6.27 m/s), Krepoljani (6.18 m/s) and Deli Jovan (6.13 m/s). This data is based on the measurements at 10m
height, usually near towns, so for beter estmaton, more precise measurements are needed. Areas with
good potental are in Miroc, Suva planina, Vrsacki breg, Tupiznica and Krepoljina. Current maximum installed
output of wind farms in Serbia is set to 450 MW, by legislaton
Regarding development and producton of equipment, Siemens Serbia announced that the company would
invest 24 million euros in the wind generators factory in Subotca. The factory should employ 150 new work-
ers. The project was started in September 2011 and it should be completed during 2014. The project includes
expansion of the factory and producton of the new type of the wind generators. The new wind generators
produced in Subotca factory will have power output of 6 MW. In this moment, Subotca factory has 500
employees, and the 50 % of the factorys output is being sold in USA.
Recently, Serbian Wind Energy Associaton (SEWEA) said that the constructon of the wind farms in Serbia,
with overall output of 450 MW, is being delayed since investors were unsatsfed with the model of the
power purchase agreement adopted by the Ministry of energy, development and natural protecton in July
2013. SEWEA, which members are the investors in the projects, said that banks are not willing to provide
up to 200 million euros loans based on current PPA.The ofcial from SEWEA said that several investors have
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been fnalizing the acquiring the constructon permits during May and June, while the constructon works
should start in the beginning of 2014. However, the PPA adopted by the Ministry was not acceptable for
the banks, SEWEA said. SEWEA also said that the deadline for completon of the projects was reduced from
three to two years. Another problem for investors is unstable and unpredictable legal framework in renew-
able energy sector, SEWEA said.
On the other hand, the ofcials from the Ministry of energy, development and natural claim that the neces-
sary regulatory and insttutonal conditons for the investments in renewable energy sector were provided.
Currently, there are no operatonal wind farms in Serbia.
Ongoing and announced projects:
Wind farm Vrska Cuka 2A VE PE Energy Systems
Constructon of this wind farm has started in May 2012, when foundaton stone was laid. Vrska Cuka 2A will
have 9 MW output, and it is part of larger project, which envisages constructon of three more wind farms on
a same site, with overall output of 35.45 MW. The project will include constructon of the substaton and 5.5
km long power line as well as reconstructon and constructon of 50 km of local roads. Wind farm is located
near Zajecar. Overall cost of the project is estmated at 100 million EUR. The winds farm should be put in
service in period of 30 months and their annual electricity producton should reach 75 GWh.
The project is being developed by local company Kolubara DOO and Worley Parsons Europe Energy Systems
from Bulgaria. The investor in the project is the VE PE Energy Systems from Switzerland.
Wind farm in Plandiste - NIS
Plandiste wind project will be jointly developed by Oil industry of Serbia (NIS) and Energowind, where two
companies will hold equal stake in the project. NIS has paid 9 million euros for the 50% stake in the project
in April 2013. The worth of the project is estmated at 160 million euros and NIS plans to invest 23.5 million
euros of own funds in the project, while the rest will be provided through loans acquired by two partners.
The wind farm Plandiste will have 34 wind generators and overall power output of 102 MW. The wind farm
is expected to produce 212 GWh of electricity per year. The electricity produced by the farm will be sold to
EPS at feed in tarifs in period of 12 years.
In mid-September 2013, NIS ofcially inaugurated the constructon works at the frst wind farm in Serbia, the
wind farm Plandiste. The ofcial ceremony was atended by the General Manager of NIS, Kiril Kravchenko,
the frst Vice Prime Minister Aleksandar Vucic and Minister of energy, development and natural protecton
Zorana Mihajlovic. Project should be completed in 12-month period. The project was delayed for three
months, because the model of the power purchase agreement with privileged electricity producers was not
adopted.
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In parallel to the start of civil engineering works, NIS Energowind has been fnalizing the negotatons with
equipment suppliers, where the fnal decision will be reached by the end of 2013.
Plandiste municipality and Energowind signed the contract for constructon of wind farm in January 2006.
However, Energowind said that bureaucratc procedures, i.e. some 45 necessary licenses and permits have
considerably slowed the entre project. Energowind has leased the land on 50 sites for period of 25 years.
Wind farm in Kovin - CWP
Contnental Wind Partners (CWP) is owner of the project for development of 170 MW wind park, called
Cibuk, near city of Kovin. The cost of the project is estmated at 300 million euros, where some of 90 million
euros would be provided from company`s own funds, while remaining 210 million euros would be provided
by creditors. Constructon works should start during 2014.
During the frst phase of the project, CWP should built 57 wind generators with overall power output of
142.5 MW, which will provide electricity for some 40,000 households. Entre project should be completed
untl the beginning of 2015. CWP and Kovin municipality signed the Cooperaton agreement in 2008, accord-
ing to which the municipality will be enttled to 2 % of annual proft from electricity sales.
Company also announced possible constructon of 150 MW wind park in Serbia.
Wind farm in Veliko Gradiste - MK-Fintel Wind
In the second half of December 2013, Italian-Serbian company MK-Fintel Wind has obtained the locaton
permit for constructon of 30 MW wind farm in Veliko Gradiste municipality. The farm will have nine 3.3 MW
turbines. The project will be developed under turnkey contract by the turbines manufacturer. According to
legislaton, MK-Fintel Wind will be obliged to obtain constructon permit in period of 90 days.The company
also said it had signed several preliminary agreements with leading internatonal banks for funding the 45
million euros worth project.
MK-Fintel Wind is owned by Fintel Energia Group (54 %) and local comapny MK Group (46 %).
Wind farm in Tutn - Hidrovint
This project is being developed by the Slovenian-Serbian company Hidrovint. In 2011, company has started
with constructon works. Hidrovint invested some 1 million EUR in the project. Municipality of Tutn has pro-
vided land for the project and it will be enttled to the part of electricity output.
The wind farm should have 30 generators once it was completed. The enlargement of the wind farm will
depend on the enlargement of the local electricity grid.
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Wind farm near Negotn Vat Energija
Vat Energija, majority owned by Vat Portugal, plans to invest 60 million EUR for constructon of wind farm
near Negotn. Wind farm will have 18 turbines and output of 60 MW. The director of the company said that
the constructon should start immediately afer acquiring the permits.
The company has already signed land lease contracts, according to which landowners will receive 1,200 EUR
per wind generator per year during next 25 years. In the same tme, the Negotn municipality will be enttled
to 1.5 % of annual electricity sales.
Wind farm in Alibunar Electrawinds
Company expressed plans to build 48 MW wind farm in Alibunar municipality. The farm should have 21 gen-
erators, where four generators should be installed during the frst phase of the project.
Wind farm Vetropark Pricon 1 PBC
Austrian-Serbian company Pricon Business Creaton (PBC) plans to invest 50 million EUR for constructon of
the wind farms, near Negotn. Wind farm will have 40 MW output, and it will be called Vetropark Pricon 1.
Wind farm on Zlatbor mountain EPS
EPS is developing one wind project, near Kostolac (Zlatbor mountain), with 30 MW output. The cost of the
project is estmated at 35-40 million EUR. EPS has already completed wind measurements near Kostolac,
which showed that the site has met the criteria for constructon of wind farms. The constructon of the wind
farm should start in 2014 and the farm should be operatonal in 2015. Its annual generaton is estmated at
93 GWh.
Wind farm in Indjija Re Energy
First announcements for constructons of wind farm in Serbia came in mid 2006, from local company MTC.
Company announced plans to construct wind farm near city of Indjija. But in August 2006, Re-Energy signed
a contract for constructon of wind farm in Beska, near city of Indjija, which is close to Belgrade-Novi Sad
highway. The wind generator will have power output of 1 MW, and the worth of the investment was est-
mated at 1 million EUR. Re-Energy expressed plans to build several wind generators in aforementoned site
and other suitable sites in municipality in the nearest future, in order to create wind farm with power output
of 25 MW.
Re-Energys ofcial said that that municipality of Indjija maybe did not have the best wind conditons for the
constructon, but it had the most efcient local government, which provided all necessary permits for the
project.
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Wind farm in Pancevo Loger
During March 2008, the representatves of company Loger, the municipality of Pancevo and autonomous
province of Vojvodina signed a protocol for constructon of 20 MW wind farm. By signing the protocol, the
municipality and the province were obliged to launch the initatve for providing subsidies for electricity
produced in wind farms.
The project called Wind farm Dolovo envisages constructon of 25 wind turbines. The cost of the project is
estmated at 30 million EUR. According to Loger, before the singing the protocol, the one-year wind meas-
urement project was conducted and the feasibility study, prepared by Canadian company Helimax, for the
project was presented. During signing of the protocol, it was announced that wind farm would be fnished
in period of one year.
In December 2008, Department for energy of Vojvodina province and municipality of Pancevo, on one side,
and company Loger signed an annex to the protocol for constructon of wind farm. The annex refers to
increase of power output of the farm from 20 MW up to 100 MW, in accordance to the approval of EMS.
Director of Loger said that company would build wind farm in cooperaton with Spanish company Gaberia
Internatonal.
Wind farms in Pancevo Wellbury - Bela Anta and Balkana
In January 2010, municipality of Pancevo and companies Velburi-Bela Anta and Balkana signed two contracts
for constructon of two wind farms with overall output of 170 MW. The constructon was expected to start
in spring 2011. The wind farms will be built between cites Pancevo and Kovin, where farms will have overall
number of 60 turbines. Overall constructon costs are estmated at 470 million EUR. The private investors are
obliged to provide funds, while municipality will provide land and necessary constructon permits. During
next 25 years, municipality will be enttled to 0.5 % of gross income from electricity sales. In the same tme,
constructon works will be carried out by local companies.
Wind farm in Pancevo WAG
In December 2009, Spanish company Wind Alliance Group (WAG) expressed plans to invest 420 million EUR
for constructon of wind farms in Serbia tll 2014. WAG should build 350 MW wind farm near city of Pancevo.
Wind farm in Zrenjanin Notos Wind Power
During mid 2008, Canadian company Notos Wind Power expressed its intentons to invest 20 million EUR for
constructon of wind farms in Vojvodina. 17 wind turbines would be installed, near city of Zrenjanin.
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Wind farm on Zlatbor mountain Ventureal
During July 2009, Austrian company Ventureal expressed interest in constructon of wind farms on Zlatbor
Mountain. Municipality said in a press release that Austrian investors were given all necessary data related
to wind potental, while local electricity distributor has presented technical data regarding potental connec-
ton of wind farms.
Wind farms in Vrsac MK Fintel and Vingtm
Municipality of Vrsac, in Vojvodina province has issued two licenses for constructon of wind farms to foreign
companies MK Fintel and Vingtm. The investors are obliged to pay fxed fee for each wind generator, and
to deliver 2.5-3 % of annual electricity output to the municipality. Ofcials confrmed that two companies
have completed necessary measurements and signed contracts for purchase of land for the wind generators.
Ofcials from municipality said that several other companies expressed interested in constructon of wind
farms. MK Fintel has licenses for constructon of two wind farms with 52 wind generators, with output of
2.5-3 MW. Director of MK Fintel Tiziano Giovanet, said they have already ordered wind generators, which
should be delivered in the beginning of 2010. Giovanet hopes that constructon works could start in spring
2010. However, the project could be delayed, since the biggest problem in this sector in Serbia is unclear
legislaton, director of MK Fintel said.
Vingtm was granted license for constructon of 60 MW wind farm with 24 wind generators on outskirts of
Deliblatska Pescara (Deliblato Sands). According to estmatons, constructon works should start in two years.
Wind farm in Boljevac - Bontkom
Italian company Bondcom Green Energy is currently developing project for constructon of 100 MW wind
farm in Boljevac municipality, on Rtanj Mountn. The farm will have 40 wind generators and cost of the pro-
ject is estmated at 100 million EUR.
Bondcom and municipality of Boljevac have signed Memorandum of understanding for this project in No-
vember 2009. Italian company has been granted 30-year land lease concession, and Bondcom will be obliged
to pay concession fee equal to 1.5 % of annual income from electricity sales. The annual fee is expected to
reach to 1 million EUR.
6.4 Biomass & biogas energy
Biomass energy sources are distributed across an area of 24000km2 (25% of the territory) covered with for-
ests and 45,000 km2 (55% of the territory) used for agriculture. Biomass energy potental comes mainly from
agricultural wastes (1.6 million toe) and wood biomass (1 million toe). Usable energy potental of animal
waste is estmated at 0.45 million toe, while industrial and municipal waste is estmated at 1.4 million toe.
Good results are achieved in biodiesel producton (out of beet, sunfower and soybean oil) while results
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from biomass briquetes producton are also expected. There are several announced and ongoing biomass
projects.
Biomass plant in Bac Enesco
Constructon of this biomass plant has started in April 2012, and the project is developed by Slovakian com-
pany Enesco. . The plant will use agricultural bioorganic waste. It will have 4 MW output and it will employ
25 people.
The cost of the project is estmated at 15 million EUR and the biogas power plant should be completed dur-
ing 2013.
Biomass plant in Indjija Electrawinds
Subsidary of Electrawind Energo Zelena is developing project for constructon of factory for processing the
animal waste in Indjija municipality. 22 million EUR contract hass been signed in 2011.
Biomass power plant near Ruma Green Investment
During mid 2011, municipality of Ruma has signed protocol for constructon of energy plant with Czech
company Green Investment and local company Angler. The future plant will be built in Hrtkovci and it will
produce 5 MW of electricity and 30 tons of steam per hour. The worth of the project is estmated at 15 mil-
lion EUR, where the funds will be provided by Green investment and Angler.
The future plant will deliver energy to the future factories that should be built near Hrtkovci as well as to the
households customers.
6.5 Solar energy
The yearly rato of actual irradiaton to the total possible irradiaton reaches approximately 50%. The total
potental for solar actve technologies has been estmated to be 50-60% of heatng demand in the cloudier
central regions. Due to lack of feed in tarifs and non-existng law procedures, there are no installed solar
electricity producton capacites or announcements for possible projects. Large plains are available only in
northern parts of Serbia (Vojvodina), but solar irradiaton in this part is lower (around 1400 kWh/m2). Re-
cently, 260 kW solar power plant was put in service near city of Leskovac.
1 000 MW solar park SEPE
This project is owned by Luxembourg-based Securum Equity Partners Europe (SEP), and it envisaged con-
structon of 1000 MW solar park. SEP planned to invest 1.7 billion euros for constructon of 1,000 MW solar
park, which would be located between municipalites Nis and Vranje in southern Serbia. The project would
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also include the constructon of three solar panels factories, which would deliver panels for the project and,
later, the panels would be exported. Constructon was to start in mid-2013.
In August 2013, Securum Equity Partners (SEP) announced it would launch the proceedings at Internatonal
Court of Arbitraton of London against the government of Serbia over abandoning the large-scale project
for constructon of 1,000 MW solar park. SEP said it would demand 160 million euros compensaton. Previ-
ously, SEP cancelled the agreement for constructon of the solar park, which should have been built on area
of 3,000 hectares. SEP argued that the government did not provide the land for the project. Commentng
the latest news, Ministry of energy, development and natural protecton said that SEP was ofered the land
for the project, with overall area ten tmes the demanded one. However, SEP was not satsfed with ofered
sites.
In October 2013, local media have reported that SEP has submited at the Internatonal Centre for Setle-
ment of Investment Disputes (ICSID) in Washington. The start of the both court proceedings was scheduled
for January 29 2014. Untl then, two sides could reach an out-of-court setlement.
In May 2011, the government of Serbia and SEP signed the Memorandum for constructon of the solar park,
where the state of Serbia was obliged to provide land and infrastructure for the project free of charge in
period of 25 years. In November 2011, the government and SEP signed non-binding Framework agreement
for constructon of solar park.
Solar park in Beocin Prima Energy
Project is being owned by Slovakian Prima Energy. In May 2013, constructon of photovoltaic power plant
in Beocin, Vojvodina province has started, on 2.5 acres. Power plant will have 1 MW output, while overall
investment should reach 1.5 million euros.
Solar park in Kursumplija Gascom
Constructon of frst solar park in Serbia has started with this solar park, in April 2012, by italian companies
Gascom and local Multenergy. Photovoltaic plant called Matarova is located in Merdare village, near Kur-
sumlija, and it was completed in January 2013. Cost of the constructon has reached 4 million euros, and it
was built on area of four hectares.
Solar park in Backa Topola S-Tech
During November 2012, German company S-Tech Energie expressed plans to invest some 5 million euros for
development of 2 MW solar par near Backa Topola. Local authorites said that German company has been
engaged in obtaining the necessary documentaton, afer which the constructon works should start and
they should be completed in one-year tme. Company is also interested in development of two more solar
parks, with overall output of 3 MW.
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Solar plant Zrenjanjin - Electrawinds
During April 2012, company expressed plans to build 10 MW solar park in Zrenjanjin, in cooperaton with
municipality of Zrenjanin. Municipality has ofered several locaton proposals to the company, and negota-
tons are ongoing. Company is also developing wind project in Alibunar and biomass plant in Indjija.
Solar park near Vranje Euro Solar
In September 2011, Chinese company Euro solar parks and municipality of Vranje have signed agreement for
development of 150 MW solar park. The park should be built in period of fve years through several phases
and overall worth of the project will reach 300 million EUR. The municipality of Vranje has provided fve loca-
tons for the project. In the second phase of the project, the solar panel factory should be built.
The pilot project should include constructon of 10 MW solar park. Chinese company has entered fnal phase
for signing the Power purchase agreement (PPA) for this pilot project with the Ministry of Energy, Develop-
ment and Environmental Protecton.
Solar park near Kikinda CHD Power Plants
Durimg September 2011, Chinese company CHD Power Plants Operaton expressed interest for constructon
of 30 MW solar park near Kikinda, Vojvodina province.
The cost of the project is estmated at 100 million EUR, where the necessary funds and the equipment would
be provided by the Chinese company CHD Power Plants Operaton, a subsidiary of China Huadian Corpora-
ton. On the other hand, the government of Vojvodina province would provide the land and it would make
necessary preparatons for the project.
6.6 Geothermal energy
In Serbia there are more than 60 geothermal systems with temperatures lower than 150C. Estmated en-
ergy reserves of geothermal resources are around 800 MWh, but utlizaton of this is low: only about 10%.
Identfed geothermal felds are located in Macva, Vojvodina, Podunavlje, Pomoravlje and Stg, while inves-
tgaton in twenty localites is in progress. The priority region in this investgaton is Macva. The installatons
already built are mostly for balneology purposes, tourism and for the heatng of greenhouses (but only in
three localites).
In February 2010, Canadian company BD Geothermal energy (BDGE), subsidiary of Tender group, expressed
plans to build 25 MW geothermal power plant near city of Vranje, where cost of the project is estmated at
50-70 million EUR. Local ofcials and Canadian company have signed memorandum of understanding for
this project.
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60
Chapter 7: Consumpton, generaton and export
7.1 Electricity consumpton
EPS is owner of coal mines which supply thermal power plants, so variable cost of generated electricity is
very low, what enables Serbia to have lowest electricity price in the region, well below realistc market price.
Because of low electricity prices startng from 1990, household consumpton increased, but at the same tme
industrial consumpton decreased, so overall Serbian consumpton did not experience big increases. Increase
of electricity consumpton in the industrial sector was lower than expected, since industrial development was
overestmated. Average monthly consumpton per household is around 400 kWh. Untl 2008, rise in electric-
ity consumpton was evident, with some 3% of annual level (32.5 TWh in 2000, 39 TWh in 2008). Since 2008,
annual growth is less than 1% or negatve. Consumpton deviaton in 12 month period is high: consumpton
in winter can be 50% higher comparing to electricity consumpton during spring/summer months, so annual
overhauls are performed in Q2 and Q3.
Households have the largest share in electricity consumpton, due to lack of large industry consumers and
high usage of electricity in heatng purposes. According to ofcial estmatons, one third of households in Ser-
bia use electricity for heatng, but at least another third occasionally use electricity for heatng purposes as
well. According to data from Energy Agency of Serbia, share of households consumpton in overall electricity
consumpton in Serbia was increased from 41 % in 1990s up to 60 % in 2000 and it was reduced to 52 % in
2011. In most of the EU countries, this share stands under 30 %.
Distributon business in Serbia is performed by fve territorially organized companies, which are part of public
utlity EPS: Elektrovojvodina, Elektrodistribucija Beograd, Elektrosrbija, Jugoistok, ED Centar. General Man-
ager of EPS announced in 2009 that company would merge fve existng distributon companies into three,
which would bring considerable savings, but no progress has been made regarding this issue. Startng from
July 1, EPS Supply was granted license for public supply. EPS Supply took over the public supply actvites from
the previous fve suppliers within the EPS. New company was established in accordance to the new Energy
law and in accordance to the restructuring programme of EPS approved by the government of Serbia. AERS
demanded from all fve distributon companies to reduce the planned network losses and to increase the
security and quality of supply.
Purchased in 2010 (GWh) Number of customers Share in overall sales
Elektrovojvodina 9 109 910 000 28 %
ED Beograd 8 150 800 000 25 %
Elektrosrbija 7 498 895 000 23 %
Jugoistok 4 909 600 000 14 %
Centar 3 167 280 000 10 %
Total 32 833 3 485 000
Table: Distributon companies
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Total number of customers in Serbia is around 3 485 000, from which 3 100 000 are household customers.
Annual losses in distributon network amount around 4.5-5 TWh, or some 15 % of overall electricity deliv-
ered. Technical losses were estmated on 8.5 %, while non-technical losses were estmated on 6.5 % or 2.1
TWh. Around 5 TWh is being spent for household heatng.
Overall debts of customers toward EPS stand at 900 million euros, where equal amounts are owed by house-
holds and companies. The companies with highest debts are the Mining and Smeltng basin Bor (40 million
euros), Zastava Energetka (27 million euros), Petrochemical plant Pancevo (23 million euros) and Fertlizer
plant Pancevo (11 million euros). The biggest debtors are the customers of Electricity distributon company
Jugoistok from Nis. According to EPSs data, in the end of 2012, some 10 % of customers (some 400,000
customers) had an overall debt of 710 million euros. Debts with maturity over 60 days stand at 715 million
euros, but signifcant amount accounts for penalty interest, which will be writen of according to recent
decision of the government of Serbia.
GEN-I).
come into force.
Table: Monthly electricity consumpton
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4123
3660
3859
3114
2744 2718
2819 2844 2788
0
1000
2000
3000
4000
5000
1 2 3 4 5 6 7 8 9 10 11 12
GWh Serbia - Monthly consumption
2009
2010
2011
2012
2013
1 2 3 4 5 6 7 8 9 10 11 12 Sum
2009 4317 3769 3841 2801 2682 2601 2727 2737 2690 3367 3669 4144 39345
2010 4280 3824 3812 3080 2849 2766 2795 2794 2747 3514 3444 4264 40169
2011 4338 3993 3885 3043 2891 2665 2805 2794 2746 3380 3910 4178 40628
2012 4257 4173 3615 3065 2815 2713 2810 2769 2671 3075 3454 4250 39667
2013 4123 3660 3859 3114 2744 2718 2819 2844 2788 28669
62
7.2 Electricity generaton and export
Electricity generaton in Serbia did not change signifcantly since the year 1991. The reason is that since 1991
there has been no new generaton capacites built. he last power plants built in Serbia are HPP Pirot (2x40
MW) commissioned in 1990 and second unit in TPP Kostolac B (350 MW) in 1991. Electricity generaton
is mainly thermal based, and vary between 60% and 70% of total generated electricity. Thermal power is
around 70% generated in TPPs Nikola Tesla A and Nikola Tesla B. Hydro power is around 70% generated
in HPPs Djerdap I and Djerdap II. The renewable energy sources should provide 18 % of domestc primary
energy producton, where 9 % of overall producton will be provided from frewood, 8 % from hydropower
and 1 % from geothermal sources.
Electric power system of Serbia has very favourable hydro thermal generaton mix that enables very fex-
ible operaton. Reversible pump storage HPP Bajina Basta provides additonal balance possibilites, with wa-
ter pumping or power generaton of 2 x 307 MW (614 MW total in both regimes). Generaton cost of Serbian
power system is generally low, since EPS is owner of coal mines which supply power plants.
Hydro power generaton is highly dependable on Danube, since 50% of generated electricity from hydro
power plants comes from HPP Djerdap 1. In summer, especially in July, August and September, hydrology
is unfavourable and electricity generaton from hydro capacites is low. Monthly hydro power generaton in
summer months can be even four tmes lower than in spring. Average water infows are the biggest in the
period from January tll May. Although largest hydro power plants are mostly run-of-river type, they all have
signifcant accumulaton basins. Hydro power generaton in Serbia is based on water coming from diferent
hydrology territories. Lots of water that is originally far away from Serbia is coming in Serbia with Danube
and River Sava, so locally unfavourable hydrology conditons do not drastcally infuence hydro power gen-
eraton. Generaton in oil fred power plants is marginal, due to expensive operaton and low efciency.
Although total available power generaton output of old CHP plants is 437 MW, their partcipaton in total
generaton structure is below 3%.
Annual overhauls are mostly scheduled for Q2 and Q3 (most of them occur in May and June), when demand
is the lowest. Consequently, due to large number of hydro power plants, hydro generaton is also highest
in May and June (stored water for melted ice, for covering missing thermal capacites which are being over-
hauled).
Due to lack of investments in new generaton capacites Serbia became importng country on the annual ba-
sis for the frst tme in 1996. But, during spring and summer Serbia is signifcant exporter of electric energy.
The biggest electricity imports are in winter because of increased household consumpton. In a period of
November-February, Serbia is importer of electric energy, while it is exportng it in a period of May-October,
almost without excepton. Annual positve export-import balances can occur, but on average, import stands
at 600 MW annually. In 1980s and early 1990s Serbia was important electricity exporter.
In October 2012, EPS has signed electricity sale and purchase contract for 2013 with Power utlity of Republic
of Srpska (ERS). According to the contract, ERS will deliver 572.8 GWh of electricity to EPS during 2013 at
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overall price of some 30.7 million euros. Eight companies took part in the tender, where EPS managed to
purchase 68 % of ofered quanttes at the average price of 53.6 euros. By this purchase, EPS has provided
some 70 % of its electricity import needs in 2013.
EPS should decommission power units with overall output of 1,100 MW untl 2020. The decommissioning
will be the consequence of increasing the efciency of natonal power system. Plants to be decommissioned
are TPP Kolubara, TPP Morava, combined heat power plants Novi Sad, Zrenjanin and Sremska Mitrovica, TPP
Kostolac A and units 1 and 2 in TPP Nikola Tesla. Decommissioned units would be replaced by the more ef-
fcient coal fred units and by upgrade of existng power plants.
In 2012, EPS had produced overall amount of 39.9 TWh of electricity. The annual producton in 2011 was
41.2 TWh. Electricity producton in hydropower plants stood at 9.8 TWh, while producton in thermal power
plants stood at 30 TWh. Due to extremely favourable hydrology and high availability of HPPs, especially HPPs
on river Drina and Danube, in 2010 HPPs had achieved highest annual output from hydro power plants in
companys history, i.e. 12.4 TWh, The previous record of 12.3 TWh was reported in 1996. The annual pro-
ducton in HPPs was 12 % higher compared to 2009 and 20 % higher than planned. This was the main reason
for increased electricity export in 2010.
In the frst half of 2013, EPS produced some 19 TWh of electricity, which was historic half-year output and
1.14 TWh higher compared to the same period last year. The result was 0.8 % higher than planned and 6.4 %
higher compared to the same period last year. Electricity producton in HPPs was 26 % higher than planned,
and mostly because of such development, EPS managed to sell some 1.6 TWh of electricity on open market.
In 2013 EPS exported 150 million euros worth electricity, which was a record result.In the same tme, the
company posted record electricity output in hydropower and thermal power plants of some 37.4 TWh. The
result is some 430 GWh higher than planned and almost 3 TWh higher compared to 2012.
It is important to menton 300 MW accumulaton HPP Piva, which is located in Montenegro. In the last 30
years, HPP Piva has been operatng under long-term contract between the Power utlity of Montenegro
(EPCG) and the EPS, which should be renewed in following years (HPP is located in Montenegro, but oper-
ated by EPS). HPP Piva delivers peak energy to Serbian power system, and in return, EPS delivers base energy
to EPCG when needed (mostly during annual overhauls of TPP Pljevlja). Amount of annual deliveries of base
load to EPCG depends on annual generaton of HPP Piva, and it stands at around 70% of HPP Piva generaton.
Serbia and Croata had dispute related to one 300 MW unit in TPP Nikola Tesla A. By investments made in
1986, Croata is enttled to one 300 MW unit, but afer 1991, no energy has been delivered, and Croata
contnued to pay loan. Croata is looking for ways to either obtain energy or invested funds, but talks are in
standstll, although Serbia acknowledges Croatan investment in TPP Nikola Tesla A.
EMS is Transmission System and Market Operator (EMS Elektro Mreza Srbije) in Serbia. Since opening of
electricity market, EMS started to perform its actvity of market operator in practce. There are three divi-
sions within EMS: for transmission grid, for transmission system operaton and for market operaton.
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Serbia has good interconnectons with neighbouring countries, which would be strengthened by new inter-
connectons with Romania and Macedonia. Weakest interconnectons are on borders of Kosovo with neigh-
bouring countries.
On the territory of Kosovo, the only one electricity service provider is Kosovo Electricity Company (KEK).
Relatons between EPS and KEK are not stll completely defned. One of the biggest disputes is ownership
of assets and old residual debts of KEK to EPS. Before war in Kosovo, EPS, i.e. Serbian government has been
investng in constructon of generaton and transmission capacites, maintenance and cost covering. Now,
Serbian government does not have authority on the territory of Kosovo district. Recently, many questons
regarding ownership has been arisen because of initated privatzaton actvites in Kosovo. KEK and EPS
do have intensive every-day cooperaton regarding scheduling, power network, balancing and electricity
exchanges. Since EPS is performing balancing services for KEK they do have specifc bilateral agreements
regarding balancing and electricity trading.
Table: Monthly electricity generaton
3151
2835
2593
2242
2025
2227
2751
2638
2727
0
500
1000
1500
2000
2500
3000
3500
1 2 3 4 5 6 7 8 9 10 11 12
GWh Serbia - Thermal generation
2009
2010
2011
2012
2013
Table: Monthly generaton from Thermal Power Plants
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4162
3927
4106
3293 3245
3342
3562
3136
3242
0
500
1000
1500
2000
2500
3000
3500
4000
4500
1 2 3 4 5 6 7 8 9 10 11 12
GWh Serbia - Electricity generation
2009
2010
2011
2012
2013
1 2 3 4 5 6 7 8 9 10 11 12 Sum
2009 4197 3621 3915 2908 3002 3165 3283 3013 2977 3436 3628 3975 41120
2010 3989 3686 3841 3439 3217 2982 3113 2987 3029 3469 3301 3908 40961
2011 4147 3824 4092 3277 3247 3046 3091 2994 2878 3322 3584 3764 41266
2012 4010 3599 3696 3345 3123 2843 2895 2814 2793 3265 3458 4059 39900
2013 4162 3927 4106 3293 3245 3342 3562 3136 3242 32015
1 2 3 4 5 6 7 8 9 10 11 12 Sum
2009 3180 2541 2778 1674 2028 2332 2272 2332 2423 2799 2702 2966 30027
2010 2836 2638 2591 2191 1985 2047 2195 2211 2250 2567 2317 2680 28508
2011 2944 2865 3052 2408 2433 2291 2369 2337 2389 2689 3093 3234 32104
2012 3281 2822 2702 2181 1995 1843 2178 2236 2227 2650 2768 3161 30044
2013 3151 2835 2593 2242 2025 2227 2751 2638 2727 23189
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Table: Monthly generaton from Hydro Power Plants
Table: Monthly export-import balances (negatve values - import)
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1011
1092
1513
1051
1220
1115
811
498 515
0
200
400
600
800
1000
1200
1400
1600
1 2 3 4 5 6 7 8 9 10 11 12
GWh Serbia - Hydro generation
2009
2010
2011
2012
2013
1 2 3 4 5 6 7 8 9 10 11 12 Sum
2009 1017 1080 1137 1234 974 833 1011 681 554 637 926 1009 11093
2010 1153 1048 1250 1248 1232 935 918 776 779 902 984 1228 12453
2011 1203 959 1040 869 814 755 722 657 489 633 491 530 9162
2012 729 777 994 1164 1128 1000 717 578 566 615 690 898 9856
2013 1011 1092 1513 1051 1220 1115 811 498 515 8826
1 2 3 4 5 6 7 8 9 10 11 12 Sum
2009 -179 -196 12 -9 237 449 459 246 206 -25 -107 -233 860
2010 -393 -180 -65 230 227 138 218 188 232 -123 -305 -490 -323
2011 -277 -199 166 178 271 294 230 136 32 -99 -387 -572 -227
2012 -294 -588 -67 147 192 87 39 14 45 74 -91 -204 -646
2013 -10 201 141 43 362 512 656 246 372 2523
-10
201
141
43
362
512
656
246
372
-800
-600
-400
-200
0
200
400
600
800
1 2 3 4 5 6 7 8 9 10 11 12
GWh Serbia - Electricity export
2009
2010
2011
2012
2013
%
year on year on year on year on year on year on year on year on year on year on year on year on year on year on year on year on
year 2008 year 2008 year 2008 year 2008 year 2008 year 2008 year 2008 year 2008
Consumpton Pumps Hydro gen Thermal gen Nuclear gen Renewable gen Overall gen Exchanges
2008
2009 0.60 0.60 20.00 6.89 10.71 10.71 2.19 2.19 4.36 4.36 253.02 253.02
Serbia 2010 2.09 2.71 -12.50 30.26 12.26 24.28 -5.06 -2.98 -0.39 3.95 137.56 42.53
2011 1.14 3.88 -28.57 1.05 -26.43 -8.56 12.61 9.26 0.74 4.73 29.72 59.61
2012 -2.37 1.43 -53.33 2.69 7.57 -1.64 -6.42 2.25 -3.31 1.26 -184.58 -14.95
Table: Annual comparison (year-to-year and year-to-2008, in %)
* Exchange values represented increase of electricity export. Positive value represents decrease of import.
66
7.3 Existng generaton facilites
7.3.1 Thermal power plants
Thermal electricity generaton in Serbia is divided into four groups/companis:
Termoelektrane Nikola Tesla - EPS
Termoelektrane Kostolac - EPS
Panonske termoelektrane Toplane - EPS
Kosovo TPPs - KEK Energy
At the end of this chapter, you can fnd compact list of all thermal generaton capacites
Termoelektrane Nikola Tesla
Termoelektrane Nikola Tesla has been founded in 1992, by linking up TPPs: Nikola Teslka A, Nikola Tesla
B, Kolubara A and Morava. Kolubara B is also a part of the company, but it has not been completed. All TPPs
within Termoelektrane Nikola Tesla use lignite, except TPP Morava, which uses coal. TPPs Nikola Tesla in-
cludes 14 units in four TPPs and it produces over 50 % of overall electricity in Serbia.
TPP Nikola Tesla will invest at least 500 million euros for environmental projects untl 2017.In the past ten
years, TPP Nikola Tesla invested some 100 million euros in environmental projects. Some 55 million euros
was invested in reconstructon of electrical flters in TPPs Nikola Tesla A and B and in TPP Kolubara. In 2014,
9 million euros will be invested for electrical flters in TPP Nikola Tesla A and 6 million euros in TPP Morava
in 2015.
By 2017, EPS will invest 250 million euros for constructon of fue gas desulphurizaton (FGD) installatons
in TPP Nikola Tesla A, which will be the biggest environmental project in South East Europe. The project will
start in 2014 and the similar project will be implemented in TPP Nikola Tesla B in the future.
In this moment, overall power output of TPP Nikola Tesla stands at 3,270 MW. Afer the renewals, the power
output will be increased up to 3,400 MW. United Natons Industrial Development Organizaton (UNIDO)
awarded cleaner producton certfcate to TPP Nikola Tesla, i.e. to all four power plants, which are part of
TPP Nikola Tesla.
TPP Kolubara A has been introduced into system in 1956 with 32 MW generaton unit. Last unit, number 5,
was introduced into system in 1979. TPP Kolubara has 5 units. Three 32 MW, one 64 MW and one 110 MW.
Available output 245 MW.
TPP Morava has been introduced into system in 1969, with its 125 MW unit. Available output is 108 MW. It
is coal fred.
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TPP Nikola Tesla A was built under the name TPP Obrenovac, but it has been changed in 1975, when it
was decided to build 2nd TPP near Nikola Tesla A. Last unit was put in operaton in 1979. TPP Nikola Tesla A
has 6 units; two 210 MW units one 305 MW unit and three 308 MW units. Overall installed power is 1650
MW, while available output is 1500 MW. Japan has provided 250 million euros loan for constructon of FGD
facilites in TPP Nikola Tesla A. Overall worth of the project in TPP Nikola Tesla A is 300 million euros, where
the rest of the funds will be provided by EPS.
TPP Nikola Tesla B was introduced into system in 1983, and it is the largest TPP in Serbian system. Last unit
was introduced into system in 1985. TPP Nikola Tesla B has two 620 MW units, with available output of 1160
MW.
In April 2012, EPS has started major renewal of unit 1 (620 MW) in TPP Nikola Tesla B. The worth of the pro-
ject is 80 million euros and the project will last six months. 59 million euros will be provided by EPS, while
12 million euros was granted by EU (for reconstructon of electrical flters) and another 8.7 million euros was
granted by the government of Switzerland (for replacement of control and management systems).
The project in TPP Nikola Tesla B is the part of the second phase of renewal of TPP Nikola Tesla untl 2017,
which is aimed to prolong operatonal life, to increase power output of units and to improve energy efcien-
cy and operatonal safety as well as to improve environmental protecton. The modernizaton will increase
overall power output of the units by 350 MW, it will made savings of 500,000 tons of coal per year, and it will
improve environmental protecton through installaton of fue gas desulphurizaton (FGD) units and through
wastewater treatment.
Termoelektrane Kostolac
Termoelektrane Kostolac has been founded in 2005, by EPS, in order to link mines and thermal power
plants Kostolac into one company. Company operates two TPPs, Kostolac A and Kostolac B. Both TPPs use
lignite as a fuel. TPP Kostolac has posted net proft of 41.5 million euros in 2011. The company has reported
highest ever electricity producton of 6.22 TWh. In the same tme, the coal producton reached 9.25 million
tons, while overburden removal reached 39.5 million cbm.
TPP Kostolac produced 6.5 TWh of electricity in 2013. Due to modernizaton and technological changes, TPP
Kostolac spent 8.8 million tons of lignite for electricity producton in 2013, and it posted 32 million euros
proft. In 2013, Drmno Coalmine posted record overburden removal of 41.5 million tons. The annual target
was set at 40 million cbm.
In the second half of September, TPP Kostolac signed the contract for the renewal of the turbine and the gen-
erator of unit 1 (300 MW) in TPP Kostolac B with the Polish subsidiary of Alstom. The worth of the contract is
21.9 million dollars. Unit 1 will be out of service in period March 1-December 1, 2014 for the purpose of the
large-scale overhaul. The main goal of the overhaul is to reach the 350 MW output of the unit, to increase
the efciency and reliability of the unit and to prolong its operatonal life, the company said. Alstom was
already engaged in the similar overhaul of unit 2 in TPP Kostolac B.
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TPP Kostolac A has two units with available output of 281 MW. First 100 MW unit was fnished in 1967,
while 2nd, 210 unit was fnished in 1980. Annual producton is around 710 GWh.
TPP Kostolac B also has two units, but with available output of 640 MW. Firs 348 MW unit was completed in
1987, while 2nd 410 MW unit was completed in 1991. Annual producton is around 3 000 GWh.
Panonske termoelektrane Toplane
Panonske termoelektrane toplane is also a company within EPS, founded in order to operate three CCGTs
in Serbia. There are three CCGTs in Serbia, all run on heavy oil.
TE-TO Novi Sad, with twho units, and 208 MW of available output.
TE-TO Zrenjanin, with one 129 MW unit and 100 MW of available output.
TE-TO Sremska Mitrovica, with three units and 45 MW of available output.
Electricity generaton by CCGTs in Serbia is insignifcant, with average of 350 GWh per year.
Kosovo TPPs
There are two TPPS in Kosovo and they are both operated by KEK Energy. There is a dispute regarding owner-
ship of assets and old debts of KEK towards EPS. Before war in Kosovo, EPS, i.e. Serbian government has been
investng in constructon of generaton and transmission capacites, maintenance and cost covering. Beside
two thermal power plants, there is only one hydro: Gazivoda, with 35 MW output.
TPP Kosovo A has 5 units. First unit (65 MW) has been introduced into system in 1962, and three years, later,
120 MW unit has been added. Later, three 200 MW units have been installed (last in 1975). Currently, only
two 200 MW units are operatonal, with average output of 260 MW.
TPP Kosovo B consists of two 310 MW units. First unit has been introduced into system in 1983, second a
year later. These two units generate around 4500 GWh per year.
In 2012, power plants Kosovo A and Kosovo B produced highest ever annual generaton of 5.85 TWh. TPP
Kosovo A has produced 2 107 GWh, while Kosovo B produced 3 739 GWh.
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Name
Fuel
Owner
Output (MW)
Generation
(GWh)
Comissioned Details
Generation
cost
Kolubara
Coal
EPS
245 MW
1100 GWh
1956-1979
Power plant is lignite fred, with fve units: 3x32, 1x64
and 110 MW. Suplied from Kolubara mine Low
Morava
Coal
EPS
125 MW
600 GWh 1969
Coal fred power plant.
Low
Nikola Tesla A
Coal
EPS
1650 MW
10000 GWh 1979
Power Plant Nikola Tesla A, previously known as Obren-
ovac 1, has overall installed output of 1650 MW, but
available output is 1500 MW. Ecological projects are on-
going. Kolubara mine
Low
Nikola Tesla B
Coal
EPS
1160 MW
7500 GWh 1983
One of the most important power plants in EPS system,
with two 620 MW units. Renewal is ongoing, which will
extend operational life, efciency and output for 350
MW. Kolubara mine
Low
Kostolac A
Coal
EPS
310 MW
2000 GWh
1967-1980
Power plant has two units, with 100 and 210 MW out-
put. Supplied from Kostolac mine Low
Kostolac B
Coal
EPS
700 MW
3000 GWh
1987-1991
Power plant has two units, with 350 MW output. Pro-
cess of modernization is ongoing, and project for con-
struction of new unit
Low
TE-TO Novi Sad
Oil
EPS
208 MW
340 GWh
Heavy oil fred, mostly used as reserve capacity due to
expensive operation. Two units. High
TE-TO Zrenjanin
Oil
EPS
100 MW
40 GWh
expensive operation. One unit High
TE-TO Sremska
M.
Oil
EPS
45 MW
4 GWh
expensive operation. Three units
High
Kosovo A
Coal
EPS - KEK Energy
260 MW
1900 GWh 1962-1975
Power plant has fve units, but only two are operation.
Although two operational units have 400 MW installed
output, real output is around 260 MW
Low
Kosovo B
Coal
EPS - KEK Energy
620 MW
3400 GWh 1984
Power plant has two 310 MW units, and it is most impor-
tant generation capacity in Kosovo. Low
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7.3.2 Hydro power plants
Hydro producton in Serbia is divided into two companies, both as a part of EPS. First, Hidroelektrane Djer-
dap operates with HPPs: Djerdap 1, Djerdap 2, Pirot and Vlasina. 2nd company, Drinsko Limske Hidroe-
lektrane operates with HPPs: Elektromorava, Zvornik, Limske HE, Bajina Basta and reversibile HPP Bajina
Basta.
Hidroelektrane Djerdap
HPP Djerdap 1 has been introduced into system in 1972. It has six 176 MW units, with total capacity of 1057
MW, with annual generaton of 5 700 GWh. It is run of river type.
The renewal of HPP started in 2009, where two out of six units have been revitalized so far. The renewal will
prolong operatonal life of the largest HPP operated by EPS by 40 years, while the overall power output will
be increased by 66 MW. Overall cost of the project should reach 217 million dollars, where 157 million dollar
worth works will be carried out by Silovie Mashini and 60 million dollar worth works will be carried out by
HPP Djerdap 1 itself. Some 100 million euros for the project was provided from the clearing debts of Russian
Federaton toward Serbia, while 117 million euros will be provided by HPP Djerdap 1.
In mid-November, 9th Annex to the Contract for renewal of HPP Djerdap 1 was signed between EPS and Rus-
sian company Silovie Mashini. The latest annex will enable purchase of additonal equipment and comple-
ton of the modernizaton of the plant by the end of April 2018.
In mid-November, 9th Annex to the Contract for renewal of HPP Djerdap 1 was signed between EPS and Rus-
sian company Silovie Mashini. The latest annex will enable purchase of additonal equipment and comple-
ton of the modernizaton of the plant by the end of April 2018.
HPP Djerdap 2 has been introduced into system in 1987. It has nine 27 MW generators, with total capacity
of 243 MW. It is also run of river type. In 2012, power plant has produced 1500 GWh.
HPP Pirot has been introduced into system in 1990, with two 40 MW units. It is run-of-river type. In 2012,
power plant has produced 89 GWh.
HPP Vlasina system has four run of river HPPs: Vrla 1, Vrla 2, Vrla 3 and Vrla 4. Overall Output of HPP Vlasina
system is 129 MW. In 2012, these power plants produced 276 GWh.
Drinsko Limske Hidroelektrane
HPP Zvornik was introduced into system in 1958, with four 23 MW generators. Total capacity of HPP Zvornik
is 92 MW, with annual generaton of 477 GWh. It is run of river type. In 2012, power plant has produced 426
GWh
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In the end of June 2013, EPS and Austrian Voith Hydro signed the contract on renewal of HPP Zvornik (96
MW). The worth of the contract is 63.7 million euros. Two units in HPP Zvornik, which are in operaton for
60 years have been manufactured by Voith. The 70 million euros loan for the renewal of HPP Zvornik was
provided by German KfW Bank. Renewal works have not started yet.
The renewal will increase the power output of the plant by 34 MW, while annual output will be increased by
70 GWh up to 550 GWh. In the same tme, the operatonal life of the plant will be increased by 30-40 years.
HPP Bajina Basta was introduced into system in 1968. It has four 91 MW units, with total capacity of 420
MW. It is run on river type. HPP Bajina Basta is the largest HPP on Drina River, with annual generaton of 1
500 GWh.
In 2006, EPS started project for large-scale renewal of HPP Bajina Basta, and entre project was fnalized in
October 2013. The overall output of HPP Bajina Basta was increased by 52 MW up to 420 MW, while the an-
nual output was increased by 40 GWh. In the same tme, operatonal life of the plant is prolonged by 30-40
years. The works on renewal have lasted for four years, and all four units in HPP were upgraded, including
the block transformers and high-voltage equipment. The main contractor in the project was Austrian com-
pany Andritz Hydro, while the several domestc companies were hired as subcontractors.
Overall cost of the project amounted to 77 million euros. 30 million euros was provided by German KfW
Bank, while the rest was provided by EPS.
Reversibile pump storage HPP Bajina Basta has two 307 MW units with total 614 MW of capacity. It has
been constructed in 1982. Annual generaton of reversible pump storage Bajina Bata vary between 500
GWh and 900 GWh having between 1000 and 1800 operatng hours.
HPP Limske HE has four HPPs:
HPP Uvac, one 36 MW unit, storage HPP, constructed in 1979
HPP Kokin Brod, two 11 MW units, storage HPP, constructed in 1967
HPP Bistrica, two 51 MW units, storage HPP, constructed in 1967
HPP Potpec, three 17 MW units run of river type, constructed in 1970.

HPP Elektromorava operates with two HPPS:
HPP Medjuvrsje, 11 MW, run of river type
HPP Ovcar Banja, 6 MW, run of river type
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7.4 Electricity transmission
EMS is at the same tme transmission system operator and market operator. There are three divisions within
EMS: for transmission grid, for transmission system operaton and for market operaton. Serbia has good
interconnectons with neighbouring countries, which would be strengthened by new interconnectons with
Romania and Macedonia. Weakest interconnectons are on borders of Kosovo with neighbouring countries.
Serbia imports electricity in winter, due to increase household consumpton, and exports energy in summer.
Forming of Serbian power exchange, called South East European Power Exchange (SEEPX) has been an-
nounced by EMS several tmes. By most recent announcements, SEEPX should be established during Q1
2014, where the power exchange should become operatonal in the fourth quarter of 2014. The partner
during the establishment of power exchange would be EPEX SPOT. EMS expects that companies from Mon-
tenegro, Macedonia and Republic of Srpska (RS) will take part in the power exchange. According to the head
of EMS, the power exchange will reach its full capacity in 2018 and it should post some 400,000 euros of
proft per year.
EMS will be in charge for the implementaton of the SEEPX project. In the beginning, power exchange will
establish day-ahead market in Serbian control area. However, the power exchange could be joined by the
partcipants from neighbouring countries, while respectable strategic partners should also became owners
of SEEPX.EMS said that the proposed model of SEEPX is entrely in accordance to European market model
and Regional acton plan for market integraton in South East Europe, which is being implemented by the
Energy Community and ENTSO-E.
The biggest risks are the technical solutons and procedures of the power exchange, quality of the manage-
rial and the operatonal staf, fnancial limitatons related to price policy and credit ratng of the partcipants
and cross-border limitatons that could prevent foreign partcipants to take part in the power exchange.
Afer successful establishment of SEEPX and start of its operatons, it was envisaged that SEEPX should be
linked with neighbouring power exchanges.
From 1st of March 2013, transmission fee in Serbia was increased for 29%, to 3.9 euros.MWh. The partcu-
lar fee for use and access to electricity transmission system is being paid by the customers connected to
high-voltage grid. For other customers, who purchase electricity at regulated prices, transmission fees was
increased by 9.2 %.
On the territory of Kosovo, there is another TSO and Market Operator: KOSTT. Relatons between EMS and
KOSTT are not stll completely defned. One of the biggest disputes is ownership of transmission, distributon
assets, and old residual debts of KEK to EPS.
There is large number of announced project, but currently there is not much actvity. Most recent project
was constructon of 400 kV interconnecton toward Macedonia.
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Table: Existing high voltage interconnections in the region
Montenegro Serbia Hungary Romania
Pljevlja 400 B. Basta Subotica 400 Sandorfalva Sandorfalva 400 Arad
Pljevlja 400 Pozega Subotica 110 Szeged Bekescsaba 400 Nadab
Ribarevine 400 Kosovo
Pljevlja 110 Visegrad Romania Moldova
Djerdap 1 400 P. de Fier 1 Isaccea 400 Vulcanesti
Croatia Djerdap 2 110 Ostrovu Mare Stanca 110 Costesti
Ernestinovo 400 S. Mitrovica Sip 110 Gura Vaii Tutora 110 Ungheni
Nijemci 110 Sid Kikinda 110 Jimbolia Husi 110 Cioara
B. Manastir 110 Apatin
Albania
Pristina 220 Fierze
Bosnia &
Herzegovina Bulgaria Romania Ucraine
Ugljevik 400 Mitrovica Nis 400 Sofa Varna 750 Isaccea Isaccea 750 Ucraina Sud
Visegrad 220 Varazdiste Bor 110 Kula Dobrudzha 400 Isaccea
Visegrad 110 Zamrsten Vrla 110 Breznik Kozlodul 400 Tantareni
Zvornik 110 M. Zvornik
Macedonia Bulgaria Turkey
Hungary Kosovo B 400 Skopje 5 Stip 400 Ch. Mogila Maritsa I. 3 400 Hamitabat
Sandorfalva 400 Subotica Nis 400 Stip Susica 110 Petrich Maritsa I. 3 400 Babaeski
Szeged 110 Subotica Kosovo A 220 Skopje 1
Bosnia &
Herzegovina
Montenegro Albania Greece Bulgaria
Trebinje 400 Podgorica Podgorica 400 Tirana Elbasan 400 Kardia Thessaloniki 400 Blagoevgrad
Sarajevo 220 Piva Podgorica 220 Vau I Dejes Bistrice 110 Mourtos
Trebinje 220 Perucica
Bileca 110 Niksic Macedonia Turkey
Cajnice 110 Pljevlja Skopje 4 400 Thessaloniki N. Santa 400 Babaeski
Trebinje 110 Herceg Novi
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7.5 Transmission capacity and monthly auctons
Following table present ofered ammounts on monthly auctons, allocated ammounts and price of trans-
mission capacity on Serbian borders. EMS performs daily auctons for 100% ATC on borders with Hungary,
Romania, Bulgaria and Croata, and on other borders, for 50% of ATC. For long term auctons, EMS performs
auctons for 100% ATC on border with Hungary, and auctons for 50% of ATC on borders with Macedonia,
Montenegro, Albania and Bosnia and Herzegovina. On other borders (Croata HEP OPS, Bulgaria TSO EAD,
Romania Transelectrica), neighboring TSO-s perform auctons for 100% of ATC on long term auctons.
Some TSO-s do not make aucton results public, so we cannot publish them.
- NTC (Net Transfer Capacity) value represents total capacity which is available for auctons (yearly + monthly
+ daily auctons). 100% of capacity for each directon is presented
- AAC (Already Allocated Capacity) value represents part of transmission capacity which is already allocated
earlier by TSO in auctons prior to monthly auctons (annual auctons).
- ATC (Available Transfer Capacity) value represents amount of transmission capacity, which is ofered by
the TSO on monthly aucton through allocaton procedure: usually by pro-rata or explicit auctons method.
- Price (EUR/MWh) is the clearing price of capacity. If amount of requested capacity is lower than ofered
amount, price of capacity is 0, and all partcipants receive requested capacity for free.
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Border+Directon NTC AAC ATC AATC Price Validity period: Border+Directon NTC AAC ATC AATC Price Validity period:
IMPORT EXPORT
Albania > Serbia 250 24 101 90 0.00 01.-31.01.2013 Serbia > Albania 250 25 100 100 1.00 01.-31.01.2013
BiH > Serbia 500 50 200 199 0.14 01.-31.01.2013 Serbia > BiH 400 50 150 150 0.04 01.-31.01.2013
Bulgaria > Serbia 250 75 50 50 0.93 01.-31.01.2013 Serbia > Bulgaria 200 50 50 50 0.41 01.-31.01.2013
Croata > Serbia 500 50 200 200 0.23 01.-31.01.2013 Serbia > Croata 400 50 150 150 0.08 01.-31.01.2013
Hungary > Serbia* 700 200 500 499 1.03 01.-31.01.2013 Serbia > Hungary* 700 200 500 496 0.01 01.-31.01.2013
Montenegro > Serbia 600 99 201 197 0.01 01.-31.01.2013 Serbia > Montenegro 600 99 201 201 0.03 01.-31.01.2013
Macedonia > Serbia 250 50 75 75 0.16 01.-31.01.2013 Serbia > Macedonia 650 75 250 250 1.47 01.-31.01.2013
Romania > Serbia 1000 300 700 700 0.18 01.-31.01.2013 Serbia > Romania 400 200 200 200 0.03 01.-31.01.2013
Albania > Serbia 250 24 101 100 0.03 01.-28.02.2013 Serbia > Albania 250 25 100 100 0.53 01.-28.02.2013
BiH > Serbia 400 50 150 150 0.35 01.-28.02.2013 Serbia > BiH 400 50 150 150 0.06 01.-28.02.2013
Croata > Serbia 400 50 150 149 0.17 01.-28.02.2013 Serbia > Croata 400 50 150 150 0.14 01.-28.02.2013
Montenegro > Serbia 550 99 176 174 0.03 01.-28.02.2013 Serbia > Montenegro 500 99 151 148 0.09 01.-28.02.2013
Macedonia > Serbia 250 50 75 75 0.14 01.-28.02.2013 Serbia > Macedonia 600 75 225 225 1.15 01.-28.02.2013
Romania > Serbia 1000 300 700 700 0.16 01.-28.02.2013 Serbia > Romania 300 200 100 50 0.13 01.-28.02.2013
Albania > Serbia 250 24 101 101 0.05 01.-31.03.2013
Serbia > Albania
250 25 100 100 0.63 01.-24.03.2013
BiH > Serbia 500 50 200 200 0.38 01.-31.03.2013 200 25 75 75 1.33 25.-28.03.2013
Bulgaria > Serbia 250 75 50 50 0.31 01.-31.03.2013 250 25 100 100 0.56 29.-31.03.2013
Croata > Serbia 500 50 200 199 0.05 01.-31.03.2013 Serbia > BiH 450 50 175 174 0.03 01.-31.03.2013
Hungary > Serbia* 700 200 500 500 0.29 01.-31.03.2013 Serbia > Bulgaria 200 50 50 50 3.17 01.-31.03.2013
Montenegro > Serbia 550 99 176 176 0.08 01.-31.03.2013 Serbia > Croata 450 50 175 175 0.21 01.-31.03.2013
Macedonia > Serbia 250 50 75 75 0.15 01.-31.03.2013 Serbia > Hungary* 700 196 504 503 0.11 01.-31.03.2013
Romania > Serbia
550 150 400 400 0.01 01.-17.03.2013
Serbia > Montenegro
600 99 201 185 0.00 01.-24.03.2013
600 150 450 420 0.00 18.-29.03.2013 500 99 151 151 0.02 25.-28.03.2013
550 150 400 400 0.01 30.-31.03.2013 550 99 176 176 0.01 29.-31.03.2013
75
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IMPORT EXPORT
Albania > Serbia 250 24 101 0.17 100.00 01.-30.04.2013 Serbia > Macedonia 550 75 200 200 1.11 01.-31.03.2013
BiH > Serbia 400 50 150 0.75 150.00 01.-30.04.2013
Serbia > Romania
250 100 150 150 0.08 01.-07.03.2013
Bulgaria > Serbia 250 75 50 0.13 49.00 01.-30.04.2013 350 100 250 200 0.00 08.-10.03.2013
Croata > Serbia 400 50 150 0.11 149.00 01.-30.04.2013 200 100 100 100 0.20 11.-14.03.2013
Hungary > Serbia* 700 200 500 500 0.16 01.-30.04.2013 300 100 200 200 0.00 15.-17.03.2013
Montenegro > Serbia 550 99 176 0.49 176.00 01.-30.04.2013 200 100 100 100 0.18 18.-29.03.2013
Macedonia > Serbia 250 50 75 0.2 73.00 01.-30.04.2013 250 100 150 150 0.08 30.-31.03.2013
Romania > Serbia
600 150 450 450 0.03 01.-28.04.2013
Serbia > Albania
250 25 100 0.57 100.00 01.-21.04.2013
550 150 400 400 0.04 29.-30.04.2013 210 25 80 0.67 80.00 22.-26.04.2013
Albania > Serbia
210 24 81 81 1.11 01.-12.05.2013 250 25 100 0.57 100.00 27.-30.04.2013
0 0 0 0 0.00 13.-16.05.2013
Serbia > BiH
450 50 175 0.06 175.00 01.-09.04.2013
210 24 81 81 1.33 17.-31.05.2013 400 50 150 0.07 149.00 10.-12.04.2013
BiH > Serbia
500 50 200 200 1.30 01.-05.05.2013 450 50 175 0.06 175.00 13.-21.04.2013
600 50 250 250 1.25 06.-14.05.2013 350 50 125 0.09 125.00 22.-26.04.2013
500 50 200 200 1.30 15.-25.05.2013 450 50 175 0.06 175.00 27.-30.04.2013
450 50 175 175 1.50 26.-31.05.2013 Serbia > Bulgaria 200 50 50 3.6 49.00 01.-30.04.2013
Bulgaria > Serbia 250 75 50 50 0.23 01.-31.05.2013
Serbia > Croata
450 50 175 0.55 175.00 01.-09.04.2013
Croata > Serbia
500 50 200 200 0.08 01.-05.05.2013 400 50 150 0.58 150.00 10.-12.04.2013
0 0 0 0 0.00 06.-14.05.2013 450 50 174 0.55 175.00 13.-21.04.2013
500 50 200 200 0.08 15.-25.05.2013 350 50 125 0.76 125.00 22.-26.04.2013
450 50 175 175 0.11 26.-31.05.2013 450 50 175 0.55 175.00 27.-30.04.2013
Montenegro > Serbia
550 99 176 176 1.06 01.-12.05.2013
Serbia > Montenegro
600 99 201 0.04 201.00 01.-07.04.2013
600 99 201 201 1.06 13.-23.05.2013 500 99 151 0.09 151.00 08.-21.04.2013
650 99 226 225 1.10 24.-31.05.2013 400 99 101 0.23 101.00 22.-26.04.2013
Macedonia > Serbia 250 50 75 75 0.30 01.-31.05.2013 600 99 201 0.04 201.00 27.-30.04.2013
Romania > Serbia
400 150 250 228 0.00 01.-17.05.2013
Serbia > Macedonia
600 75 225 1.13 225.00 01.-07.04.2013
450 150 300 228 0.00 18.-19.05.2013 550 75 200 1.52 200.00 08.-21.04.2013
400 150 250 228 0.00 20.-24.05.2013 400 75 125 2.01 125.00 22.-26.04.2013
450 150 300 228 0.00 25.-26.05.2013 600 75 225 1.13 225.00 27.-30.04.2013
400 150 250 228 0.00 27.-31.05.2013
Serbia > Romania
450 100 350 350 0.03 01.-05.04.2013
Albania > Serbia 210 24 81 81 0.43 01.-30.06.2013 350 100 250 250 0.07 06.04.2013
BiH > Serbia 500 50 200 200 0.25 01.-30.06.2013 400 100 300 300 0.05 07.04.2013
Bulgaria > Serbia
150 75 50 49 0.02 01.-05.06.2013 450 100 350 350 0.03 08.-19.04.2013
200 75 25 25 7.00 06.-07.06.2013 350 100 250 250 0.07 20.-21.04.2013
250 75 50 49 0.02 08.-30.06.2013 250 100 150 150 0.17 22.-26.04.2013
Croata > Serbia 500 50 200 200 0.07 01.-30.06.2013 350 100 250 250 0.07 27.-30.04.2013
Hungary > Serbia* 700 200 500 499 0.15 01.-30.06.2013
Serbia > Albania
210 25 80 80 0.28 01.-12.05.2013
Montenegro > Serbia
600 99 201 201 0.11 01.-16.06.2013 0 0 0 0 0.00 13.-16.05.2013
600 99 201 201 0.11 17.-30.06.2013 210 25 80 80 0.28 17.-25.05.2013
Macedonia > Serbia 250 50 75 75 0.17 01.-30.06.2013 150 25 50 50 0.52 26.-31.05.2013
Romania > Serbia
350 150 200 200 0.06 01.-05.06.2013
Serbia > BiH
400 50 150 150 0.07 01.-25.05.2013
200 150 50 50 0.16 06.-07.06.2013 360 50 130 130 0.09 26.-31.05.2013
350 150 200 200 0.06 08.-09.06.2013 Serbia > Bulgaria 100 50 0 0 0.00 01.-31.05.2013
400 150 250 250 0.03 10.-18.06.2013
Serbia > Croata
500 50 200 200 0.73 01.-05.05.2013
450 150 300 300 0.01 19.-28.06.2013 0 0 0 0 0.00 06.-14.05.2013
400 150 250 250 0.03 29.-30.06.2013 500 50 200 200 0.70 15.-25.05.2013
Albania > Serbia 210 24 81 81 0.21 01.-31.07.2013 360 50 130 130 1.10 26.-31.05.2013
BiH > Serbia 500 50 200 199 0.11 01.-31.07.2013 Serbia > Hungary* 800 196 604 604 0.87 01.-31.05.2013
Bulgaria > Serbia 150 75 50 50 0.20 01.-31.07.2013
Serbia > Montenegro
600 99 201 201 0.10 01.-23.05.2013
Croata > Serbia 500 50 200 200 0.18 01.-31.07.2013 400 99 101 101 0.26 24.-31.05.2013
Hungary > Serbia* 700 200 500 500 0.35 01.-31.07.2013
Serbia > Macedonia
300 75 75 75 7.12 01.-12.05.2013
Montenegro > Serbia 600 99 201 201 0.12 01.-31.07.2013 550 75 200 200 1.62 13.-25.05.2013
Romania > Serbia
400 150 250 250 0.03 01.-02.07.2013
Serbia > Romania
250 100 150 150 0.16 01.-03.05.2013
450 150 300 293 0.00 03.-05.07.2013 200 100 100 100 0.37 04.-05.05.2013
400 150 250 250 0.03 06.07.2013 250 100 150 150 0.16 06.-07.05.2013
500 150 350 308 0.00 07.-09.07.2013 200 100 100 100 0.37 08.-12.05.2013
400 150 250 250 0.03 10.-21.07.2013 250 100 150 150 0.16 13.-17.05.2013
400 150 250 250 0.03 22.-26.07.2013 200 100 100 100 0.37 18.-31.05.2013
350 150 200 200 0.05 27.-28.07.2013
Serbia > Albania
210 25 80 80 0.24 01.-09.06.2013
300 150 150 150 0.21 29.-31.07.2013 150 25 50 50 0.43 10.-30.06.2013
Albania > Serbia 210 24 81 81 0.11 01.-31.08.2013
Serbia > BiH
420 50 160 160 0.03 01.-18.06.2013
BiH > Serbia 500 50 200 199 0.15 01.-31.08.2013 250 50 75 75 0.15 19.-30.06.2013
76
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IMPORT EXPORT
Croata > Serbia 500 50 200 200 0.12 01.-31.08.2013
Serbia > Croata
420 50 160 160 0.37 01.-18.06.2013
Hungary > Serbia*
700 200 500 500 0.38 01.-11.08.2013 250 50 75 75 0.93 19.-30.06.2013
- 196 0 0 0.00 12.-16.08.2013 Serbia > Hungary* 800 196 604 604 0.41 01.-30.06.2013
700 200 500 500 0.38 17.-31.08.2013
Serbia > Montenegro
580 99 191 189 0.13 01.-09.06.2013
Romania > Serbia
500 150 350 350 0.11 01.-04.08.2013
Serbia > Macedonia
580 75 215 215 1.88 01.-09.06.2013
450 150 300 300 0.13 05.-11.08.2013 450 75 150 150 7.01 10.-30.06.2013
500 150 350 350 0.17 12.-25.08.2013
Serbia > Romania
450 100 350 288 0.00 01.-02.06.2013
0 150 0 0 0.00 26.-28.08.2013 400 100 300 289 0.00 03.-05.06.2013
500 150 350 350 0.11 29.-31.08.2013 350 100 250 250 0.03 06.-07.06.2013
Albania > Serbia
210 24 81 80 0.15 01.-11.09.2013 450 100 350 288 0.00 08.-09.06.2013
0 0 0 0 0.00 12.-13.09.2013 200 100 100 100 0.17 10.-16.06.2013
210 24 81 81 0.15 14.-30.09.2013 150 100 50 50 0.33 17.-30.06.2013
BiH > Serbia 450 50 175 174 0.17 01.-30.09.2013 Serbia > Albania 210 25 80 80 1.15 01.-31.07.2013
Bulgaria > Serbia
300 75 75 74 1.23 01.-15.09.2013
Serbia > BiH
500 50 200 200 0.11 01.-08.07.2013
0 0 0 0 0.00 16.-22.09.2013 400 50 150 150 0.14 09.-19.07.2013
250 75 50 50 1.30 23.-30.09.2013 500 50 200 200 0.11 20.-28.07.2013
Croata > Serbia
550 50 225 225 0.09 01.-22.09.2013 450 50 175 175 0.13 29.-31.07.2013
500 50 200 200 0.14 23.-30.09.2013 Serbia > Bulgaria 100 50 0 0 0.00 01.-31.07.2013
Hungary > Serbia* 700 200 500 500 0.25 01.-30.09.2013
Serbia > Croata
500 50 200 200 0.23 01.-08.07.2013
Montenegro > Serbia
600 99 201 200 0.06 01.-08.09.2013 400 50 150 150 0.32 09.-19.07.2013
500 99 151 149 0.07 09.-26.09.2013 500 50 200 200 0.23 20.-28.07.2013
600 99 201 200 0.06 27.-30.09.2013 450 50 175 174 0.27 29.-31.07.2013
Macedonia > Serbia
300 50 100 100 0.38 01.-08.09.2013 Serbia > Hungary* 800 196 604 604 0.31 01.-31.07.2013
0 0 0 0 0.00 09.-13.09.2013
Serbia > Montenegro
600 99 201 200 0.30 01.-21.07.2013
300 50 100 100 0.38 14.-30.09.2013 550 99 176 176 0.39 22.-31.07.2013
Romania > Serbia
500 150 350 350 0.05 01.9.2013
Serbia > Macedonia
450 75 150 150 14.21 01.-08.07.2013
450 150 300 300 0.11 02.-06.09.2013 600 75 225 225 5.62 09.-21.07.2013
500 150 350 350 0.05 07.-08.09.2013 500 75 175 174 12.01 22.-31.07.2013
450 150 300 300 0.13 09.-11.09.2013
Serbia > Romania
500 100 400 288 0.00 01.-07.07.2013
500 150 350 350 0.05 12.-13.09.2013 450 100 350 289 0.00 08.-12.07.2013
550 150 400 370 0.00 14.-15.09.2013 500 100 400 288 0.00 13.-14.07.2013
450 150 300 300 0.11 16.-22.09.2013 250 100 150 150 0.16 15.-19.07.2013
500 150 350 350 0.05 23.-30.09.2013 500 100 400 305 0.00 20.-21.07.2013
Albania > Serbia
210 24 81 80 0.17 01.-25.10.2013 300 100 200 200 0.10 22.-31.07.2013
250 24 101 101 0.15 26.-31.10.2013
Serbia > Albania
210 25 80 80 0.48 01.-18.08.2013
BiH > Serbia 550 50 225 225 0.11 01.-31.10.2013 150 25 50 50 0.97 19.-25.08.2013
Bulgaria > Serbia
250 75 50 50 3.59 01.-20.10.2013 210 25 80 80 0.48 26.-31.08.2013
200 75 25 24 4.59 21.-31.10.2013
Serbia > BiH
400 50 150 149 0.23 01.-04.08.2013
Croata > Serbia 550 50 225 224 0.08 01.-31.10.2013 200 50 50 50 1.10 05.-07.08.2013
Hungary > Serbia* 700 200 500 500 0.36 01.-31.10.2013 400 50 150 150 0.37 08.-18.08.2013
Montenegro > Serbia
600 99 201 201 0.06 01.-06.10.2013 450 50 175 174 0.23 19.-25.08.2013
500 99 151 151 0.08 07.-10.10.2013 500 50 200 200 0.20 26.-30.08.2013
600 99 201 201 0.06 11.-25.10.2013 400 50 150 149 0.23 31.08.2013
650 99 226 226 0.04 26.-31.10.2013 Serbia > Bulgaria 100 50 0 0 01.-31.08.2013
Macedonia > Serbia
300 50 100 99 0.07 01.-13.10.2013
Serbia > Croata
500 50 200 200 0.36 01.-04.08.2013
150 50 25 25 0.85 14.-25.10.2013 200 50 50 50 0.87 05.-07.08.2013
300 50 100 99 0.07 26.-31.10.2013 500 50 200 200 0.37 08.-11.08.2013
Romania > Serbia
400 150 250 250 0.43 01.-17.10.2013 450 50 175 175 0.44 12.-25.08.2013
450 150 300 300 0.40 18.-20.10.2013 500 50 200 200 0.36 26.-31.08.2013
400 150 250 250 0.43 21.-25.10.2013
Serbia > Hungary*
800 196 604 601 0.25 01.-04.08.2013
450 150 300 300 0.40 26.-27.10.2013 300 196 104 104 - 05.-07.08.2013
400 150 250 250 0.43 28.-31.10.2013 800 196 604 601 0.25 08.-11.08.2013
Albania > Serbia 250 24 101 101 0.23 01.-30.11.2013 - 196 0 0 0.00 12.-16.08.2013
BiH > Serbia
550 50 225 225 0.30 01.-06.11.2013 800 196 604 601 0.25 17.-31.08.2013
500 50 200 200 0.35 07.-18.11.2013
Serbia > Montenegro
600 99 201 201 0.16 01.-04.08.2013
550 50 225 225 0.30 19.-30.11.2013 550 99 176 176 0.22 05.-07.08.2013
Bulgaria > Serbia 300 75 75 75 4.72 01.-30.11.2013 600 99 201 201 0.19 08.-18.08.2013
Croata > Serbia 600 50 250 249 0.06 01.-30.11.2013 370 99 86 85 0.57 19.-25.08.2013
Hungary > Serbia* 700 200 500 499 0.45 01.-30.11.2013 400 99 101 100 0.36 26.-28.08.2013
Macedonia > Serbia 300 50 100 100 0.52 01.-30.11.2013
Serbia > Macedonia
550 75 200 200 1.37 01.-07.08.2013
Romania > Serbia
600 150 450 450 0.56 01.-04.11.2013 600 75 225 225 0.70 08.-18.08.2013
550 150 400 400 0.65 05.-12.11.2013 400 75 125 125 6.23 19.-28.08.2013
600 150 450 450 0.56 13.-30.11.2013 500 75 175 175 1.65 29.-31.08.2013
77
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IMPORT EXPORT
Albania > Serbia 250 24 101 99 0.15 01.-31.12.2013
Serbia > Romania
350 100 250 250 0.01 01.-02.08.2013
BiH > Serbia 500 50 200 200 0.63 01.-31.12.2013 400 100 300 265 0.00 03.-04.08.2013
Bulgaria > Serbia 250 75 50 50 2.83 01.-31.12.2013 350 100 250 229 0.00 05.-07.08.2013
Croata > Serbia 600 50 250 250 0.12 01.-31.12.2013 450 100 350 268 0.00 08.-11.08.2013
Hungary > Serbia 700 200 500 500 0.53 01.-31.12.2013 400 100 300 242 0.00 12.-13.08.2013
Romania > Serbia
600 150 450 450 0.65 01.12.2013 450 100 350 274 0.00 24.-25.08.2013
500 150 350 350 0.88 02.-04.12.2013 0 100 0 0 0.00 26.-28.08.2013
600 150 450 450 0.66 05.-31.12.2013 500 100 400 271 0.00 29.-30.08.2013
450 100 350 271 0.00 31.08.2013
Serbia > Albania
210 25 80 80 0.38 01.-11.09.2013
0 0 0 0 0.00 12.-13.09.2013
210 25 80 80 0.38 14.-15.09.2013
150 25 50 50 1.00 16.-19.09.2013
210 25 80 80 0.51 20.-30.09.2013
Serbia > BiH
350 50 125 123 0.27 01.-08.09.2013
300 50 100 100 0.32 09.-30.09.2013
Serbia > Bulgaria
150 50 25 25 1.02 01.-15.09.2013
0 0 0 0 0.00 16.-22.09.2013
150 50 25 25 1.07 23.-30.09.2013
Serbia > Croata
350 50 125 125 0.32 01.-08.09.2013
300 50 100 100 0.37 09.-30.08.2013
Serbia > Hungary* 800 196 604 603 0.27 01.-30.09.2013
Serbia > Montenegro
550 99 176 176 0.16 01.-08.09.2013
650 99 226 226 0.14 09.-13.09.2013
500 99 151 151 0.19 14.-20.09.2013
550 99 176 175 0.17 21.-26.09.2013
600 99 201 201 0.14 27.-30.09.2013
Serbia > Macedonia
550 75 200 200 0.75 01.-08.09.2013
0 0 0 0 0.00 09.-13.09.2013
450 75 150 150 1.27 14.-22.09.2013
550 75 200 200 0.75 23.-30.09.2013
Serbia > Romania
300 100 200 200 0.05 01.-15.09.2013
400 100 300 290 0.00 16.-30.09.2013
Serbia > Albania
210 25 80 80 1.20 01.-25.10.2013
250 25 100 100 1.70 26.-31.10.2013
Serbia > BiH 300 50 100 100 0.34 01.-31.10.2013
Serbia > Bulgaria 150 50 25 25 0.57 01.-31.10.2013
Serbia > Croata 350 50 125 125 0.34 01.-31.10.2013
Serbia > Hungary* 800 196 604 603 0.35 01.-31.10.2013
Serbia > Montenegro
550 99 176 176 0.27 01.-20.10.2013
500 99 151 151 0.26 21.-25.10.2013
650 99 226 226 0.13 26.-31.10.2013
Serbia > Macedonia
550 75 200 200 0.54 01.-20.10.2013
500 75 175 175 0.57 21.-25.10.2013
600 75 225 225 0.26 26.-31.10.2013
Serbia > Romania
500 100 400 325 0.00 01.-05.10.2013
400 100 300 300 0.20 06.10.2013
250 100 150 150 0.09 07.-10.10.2013
400 100 300 300 0.02 11.-17.10.2013
300 100 200 200 0.08 18.-20.10.2013
400 100 300 300 0.02 21.-27.10.2013
300 100 200 200 0.07 28.-31.10.2013
Serbia > Albania 250 25 100 100 1.27 01.-30.11.2013
Serbia > BiH
550 50 225 225 0.12 01.-06.11.2013
500 50 200 199 0.15 07.-18.11.2013
550 50 225 225 0.12 19.-30.11.2013
Serbia > Bulgaria 250 50 75 75 0.23 01.-30.11.2013
Serbia > Croata 600 50 250 250 0.25 01.-30.11.2013
Serbia > Hungary* 800 196 604 604 0.46 01.-30.11.2013
Serbia > Montenegro 600 99 201 200 0.27 01.-30.11.2013
Serbia > Macedonia 600 75 225 225 0.65 01.-30.11.2013
78
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IMPORT EXPORT
550 150 400 400 0.65 05.-12.11.2013 400 75 125 125 6.23 19.-28.08.2013
600 150 450 450 0.56 13.-30.11.2013 500 75 175 175 1.65 29.-31.08.2013
Albania > Serbia 250 24 101 99 0.15 01.-31.12.2013
Serbia > Romania
350 100 250 250 0.01 01.-02.08.2013
BiH > Serbia 500 50 200 200 0.63 01.-31.12.2013 400 100 300 265 0.00 03.-04.08.2013
Bulgaria > Serbia 250 75 50 50 2.83 01.-31.12.2013 350 100 250 229 0.00 05.-07.08.2013
Croata > Serbia 600 50 250 250 0.12 01.-31.12.2013 450 100 350 268 0.00 08.-11.08.2013
Hungary > Serbia 700 200 500 500 0.53 01.-31.12.2013 400 100 300 242 0.00 12.-13.08.2013
Romania > Serbia
600 150 450 450 0.65 01.12.2013 450 100 350 274 0.00 24.-25.08.2013
500 150 350 350 0.88 02.-04.12.2013 0 100 0 0 0.00 26.-28.08.2013
600 150 450 450 0.66 05.-31.12.2013 500 100 400 271 0.00 29.-30.08.2013
450 100 350 271 0.00 31.08.2013
Serbia > Albania
210 25 80 80 0.38 01.-11.09.2013
0 0 0 0 0.00 12.-13.09.2013
210 25 80 80 0.38 14.-15.09.2013
150 25 50 50 1.00 16.-19.09.2013
210 25 80 80 0.51 20.-30.09.2013
Serbia > BiH
350 50 125 123 0.27 01.-08.09.2013
300 50 100 100 0.32 09.-30.09.2013
Serbia > Bulgaria
150 50 25 25 1.02 01.-15.09.2013
0 0 0 0 0.00 16.-22.09.2013
150 50 25 25 1.07 23.-30.09.2013
Serbia > Croata
350 50 125 125 0.32 01.-08.09.2013
300 50 100 100 0.37 09.-30.08.2013
Serbia > Hungary* 800 196 604 603 0.27 01.-30.09.2013
Serbia > Montenegro
550 99 176 176 0.16 01.-08.09.2013
650 99 226 226 0.14 09.-13.09.2013
500 99 151 151 0.19 14.-20.09.2013
550 99 176 175 0.17 21.-26.09.2013
600 99 201 201 0.14 27.-30.09.2013
Serbia > Macedonia
550 75 200 200 0.75 01.-08.09.2013
0 0 0 0 0.00 09.-13.09.2013
450 75 150 150 1.27 14.-22.09.2013
550 75 200 200 0.75 23.-30.09.2013
Serbia > Romania
300 100 200 200 0.05 01.-15.09.2013
400 100 300 290 0.00 16.-30.09.2013
Serbia > Albania
210 25 80 80 1.20 01.-25.10.2013
250 25 100 100 1.70 26.-31.10.2013
Serbia > BiH 300 50 100 100 0.34 01.-31.10.2013
Serbia > Bulgaria 150 50 25 25 0.57 01.-31.10.2013
Serbia > Croata 350 50 125 125 0.34 01.-31.10.2013
Serbia > Hungary* 800 196 604 603 0.35 01.-31.10.2013
Serbia > Montenegro
550 99 176 176 0.27 01.-20.10.2013
500 99 151 151 0.26 21.-25.10.2013
650 99 226 226 0.13 26.-31.10.2013
Serbia > Macedonia
550 75 200 200 0.54 01.-20.10.2013
500 75 175 175 0.57 21.-25.10.2013
600 75 225 225 0.26 26.-31.10.2013
Serbia > Romania
500 100 400 325 0.00 01.-05.10.2013
400 100 300 300 0.20 06.10.2013
250 100 150 150 0.09 07.-10.10.2013
400 100 300 300 0.02 11.-17.10.2013
300 100 200 200 0.08 18.-20.10.2013
400 100 300 300 0.02 21.-27.10.2013
300 100 200 200 0.07 28.-31.10.2013
Serbia > Albania 250 25 100 100 1.27 01.-30.11.2013
Serbia > BiH
550 50 225 225 0.12 01.-06.11.2013
500 50 200 199 0.15 07.-18.11.2013
550 50 225 225 0.12 19.-30.11.2013
Serbia > Bulgaria 250 50 75 75 0.23 01.-30.11.2013
Serbia > Croata 600 50 250 250 0.25 01.-30.11.2013
Serbia > Hungary* 800 196 604 604 0.46 01.-30.11.2013
EMS - Serbia Annual 2014
Border+Direction ATC AATC Price Validity period:
IMPORT
Albania > Serbia 25 25 0.21 01.01.2014.-31.12.2014
BiH > Serbia 50 50 0.41 01.01.2014.-31.12.2014
Bulgaria > Serbia
200 200 2.07 01.01.2014.-28.09.2014
200 200 2.07 09.10.2014.-31.12.2014
Croatia > Serbia 200 200 0.36 01.01.2014.-31.12.2014
Hungary > Serbia 300 300 0.51 01.01.2014.-31.12.2014
Montenegro > Serbia 100 100 0.21 01.01.2014.-31.12.2014
Macedonia > Serbia 50 50 0.26 01.01.2014.-31.12.2014
Romania > Serbia 150 150 1.11 01.01.2014.-31.12.2014
EXPORT
Serbia > Albania 25 25 1.45 01.01.2014.-31.12.2014
Serbia > BiH 50 50 0.17 01.01.2014.-31.12.2014
Serbia > Bulgaria
150 150 1.21 01.01.2014.-28.09.2014
150 150 1.21 09.10.2014.-31.12.2014
Serbia > Croatia 100 100 0.66 01.01.2014.-31.12.2014
Serbia > Hungary 300 300 0.43 01.01.2014.-31.12.2014
Serbia > Montenegro 100 100 0.15 01.01.2014.-31.12.2014
Serbia > Macedonia 75 75 1.72 01.01.2014.-31.12.2014
Serbia > Romania 100 100 0.12 01.01.2014.-31.12.2014
79
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IMPORT EXPORT
Serbia > Romania
300 100 200 200 0.03 01.11.2013
350 100 250 225 0.00 02.-03.11.2013
300 100 200 200 0.03 04.11.2013
200 100 100 100 0.10 05.-08.11.2013
300 100 200 200 0.03 09.-12.11.2013
300 100 200 200 0.03 13.-20.11.2013
350 100 250 225 0.00 21.-30.11.2013
Serbia > Albania 250 25 100 100 1.84 01.-31.12.2013
Serbia > BiH 400 50 150 150 0.29 01.-31.12.2013
Serbia > Bulgaria 250 50 75 75 0.89 01.-31.12.2013
Serbia > Croata 500 50 200 200 0.31 01.-31.12.2013
Serbia > Hungary 800 196 604 602 0.21 01.-31.12.2013
Serbia > Romania
350 100 250 250 0.02 01.12.2013
200 100 100 100 0.23 02.-06.12.2013
350 100 250 250 0.01 07.-16.12.2013
300 100 200 200 0.13 17.-20.12.2013
350 100 250 250 0.15 21.-31.12.2013

Country Report On Energy Business in Serbia January 2014.unlocked

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Country Report On Energy Business in Serbia January 2014.unlocked

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Country Report on Energy Business in

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