Strong Market Interest in Renewables Sector – Private Capital Absolute Leader in Investments

The pace of development of renewable energy capacities over the past four years has been historically the most intensive, and during that period Serbia has made a strong breakthrough in the development of this sector, said Assistant Minister for International Cooperation, European Integration and Project Management Jovana Joksimovic at the Kopaonik Business Forum.

Two rounds of auctions have been successfully conducted, the market has shown great interest, and private capital has been the absolute leader in investments. In the coming period, we see the investment focus in several complementary directions, primarily increasing the flexibility of the system. Thanks to the introduction of the obligation to provide battery storage amounting to 10 percent of the installed capacity of a power plant through regulatory amendments in 2023, today we have more than one gigawatt of battery capacity under development that has been reported to EMS. Secondly, the construction of the Bistrica pumped-storage hydropower plant is strategically important for Serbia, as it significantly affects the integration of generation from solar and wind power plants that are under construction or planned. At the same time, investments in the transmission and distribution network continue, because without a modernized and digitalized grid there can be no further integration of renewables, and an important direction is also strengthening the investment role of EPS in renewable energy sources - Joksimovic said at the panel "Energy 4.0: System Transformation for a Sustainable Economy".

She added that private capital is expected to remain a key driver of the development of renewable energy sources and energy storage in the coming years, while the state provides the strategic framework, system stability and long-term sustainability of the transition.

In 2026, the Ministry’s focus will be on specifying and stabilizing the regulatory framework. The adoption of the Regulation on the Conditions of Delivery and Supply in the part concerning active customers is underway. After its adoption and the finalization of rulebooks on operations, particularly at the distribution level, we expect the industry to take a stronger step into the energy transition and become one of the leaders of private investments - Joksimovic said.

She also recalled that Serbia has been the leader within the Energy Community for the third year in a row in aligning with EU regulations and is so far the only contracting party that has met the conditions for coupling with the European Union electricity market.

Serbia was the first in the Western Balkans to align its legislative framework in the electricity sector and will be the first EU candidate country to integrate into the single electricity market, and we were also the first to launch a regional electricity exchange with two EU member states - she said.

Ministry for International Cooperation

European Integration and Project Management

Jovana Joksimovic

renewable energy sector