Serbia needs reforms for investments in energy – USA didn’t influence South Stream project outcome

Principal Deputy Assistant Secretary in the Bureau of Energy Resources at the Department of State Mary Warlick stated that it was needed that Serbia carry out reforms in order to create economic and business conditions for drawing new investments in the energy sector.

She said that what was primarily needed were investments in renewable energy sources, as Serbia had a great potential in the area and the exploitation of those resources would help the country significantly.

– Changes in the legal framework are necessary, above all the laws which would enable the country to be supplied with green energy, which automatically leads to reduction of harmful gases in the atmosphere. The more steps Serbia makes in that direction, the more energetically secure it will be – Warlick said.

According to her, renewable energy sources are important for Serbia, as the country has obliged to have 27% of its energy coming from these sources by 2020.

She added that it was encouraging that the state had agreed to increase the electricity price gradually and emphasized that the price needed to be competitive, and that the money from it could be used for new investments.

Warlick also pointed out that she had talked to representatives of the Government of Serbia about energy safety and diversification, which she considers important to Europe and the region.

– The dependence of the Southeastern and Central Europe on a single gas supply source is noticeable, which is why it’s important that changes be made, that is, that there are various sources, directions and ways of supplying, as this is the only way to safety in the energy sector – she said.

Warlick added that the USA had had no say in the South Stream project, and that the decision to give up on the project had been made by the European Union, who had asked Bulgaria to stop building the pipeline so that the project could be brought in line with the Third Energy Package and the EU rules and regulations.

She emphasized that Serbia’s priority, at the moment when the country was receiving gas through Ukraine only, needed to be to connect to the Bulgarian pipeline, but also to consider using liquid natural gas from America and Australia.

Warlick emphasized that the USA and Europe supported the construction of the Krk terminal, as the gas from that direction could supply a part of Europe and the region, but that the project depended on the Government of Croatia to a great extent and that another problem was the lack of infrastructure.

According to her, it’s not certain whether more new pipelines in Europe would truly meet the need of energy supply from various sources.

– Each new pipeline is a new piece of infrastructure and requires a lot of money. We don’t believe that the South Stream, the Turkish Stream or the Nord Stream 2 will provide this. It’s more important to consider underused existing pipelines, instead of talking about new ones – she emphasized.

Vlada Republike Srbije

Mary Warlick

energy sector in Serbia

renewable energy sources

RES

green energy

price of electricity

energy safety

gas supply in Serbia

South Stream pipeline

EU Third Energy Package

liquid natural gas

Turkish Stream

Nord Stream 2