Recommendation for companies: Invest in energy efficiency first!

“Fix” energy efficiency first - this is, in brief, the recommendation of experts to companies, large but also small and medium-sized, on what to do in the short term, in terms of energy.

The next step, they say, is to look for new energy sources.

The point of the panel “Energy stability of companies - strategies for doing business in conditions of market uncertainty”, which was organized in Belgrade by the Slovenian Business Club, was precisely this: to help companies, but also households, to cope with energy challenges by using renewable energy sources - knowing that this is currently one of the most important issues in the world.

State investing EUR 14.4 billion

Ahead of the panel, Rados Popadic, acting Minister of Mining and Energy of Serbia, announced that the state would invest EUR 14.4 billion in the energy sector in the period from 2028 to 2035.

According to him, the largest investments will relate to new capacities for electricity production, which in the mentioned period would amount to around EUR 6.5 billion.

– EUR 2.4 billion will be invested in the transmission and distribution system, around EUR 1.2 billion will be invested in gas pipeline connections and around EUR 1.2 billion for oil pipelines.

When it comes to large projects in the next two years, the priorities are: the start of construction of the reversible HPP “Bistrica”, the start of construction of a gas power plant near Nis, the construction of a gas interconnection with North Macedonia and Romania, the completion of the expansion of the storage facility in Banatski Dvor, the completion of a large corridor for the transmission of electricity from Romania to Bosnia and Herzegovina – said Popadic.

Popadic emphasized that, as far as renewable energy sources in Serbia are concerned, until four years ago, there were just over 400 megawatts from wind and solar, and currently 1232 MW are with buyers and producers.

– That is three times more green energy, which shows that we are on the right track to achieving the strategic goal of having at least 45% of energy from wind and solar by 2030. What is encouraging is that the number of buyers of producers who independently produce electricity is growing – said Popadic.

Referring to the recently adopted Regulation on the Conditions of Delivery and Supply of Electricity, Popadic pointed out that this document clearly defined the status of an active buyer and opened the door to further development of energy production from renewable sources for own needs.

– Clean, basic nuclear energy is important for the further development of the sector. The goal is for Serbia to be ready for export nuclear energy technologies by 2032 – said Popadic, emphasizing that the most expensive kilowatt was the one that was thrown away.

He concluded by saying that those investments were laying the foundation for the Serbian industry to be competitive.

Big numbers and announcements were a good introduction to the discussion, which was led by eKapija’s editor-in-chief, Mirko Radonjic.

Model according to amount of consumption

Djordje Popovic, CEO of Trivera Energy, explained what the postponement of new studies on the connection of electricity producers from variable RES to 2029 would bring, in accordance with the Government’s decree passed a few days before.

– When it comes to the energy market, the biggest “losers” are investors who wanted to invest in large capacities and who did not secure a permit for the construction of the facility and a permit for connection. The winners are those who have provided this, there are hundreds of such entities and the focus of investments will be on these projects – said Popovic.

According to him, solar systems are a good choice for small, medium and large enterprises, but the choice of the appropriate RES model also depends on how small or large a company or household is an energy consumer.

Regulation a shortcut to independent supply

Andrija Pavlovic from Resalta, the leading energy services company in the region, which has invested more than EUR 100 million in various projects, emphasized that the Regulation of the Government of Serbia was the most important item in the current year, because it opened the possibility for Serbia to engage in sustainable development and be energy secure.

– The Regulation opens the door and the possibility for both companies and citizens to step by step reach the opportunity for independent energy supply. But it is important to follow the time frames when it comes to preparing the study (three months), after which there is a time “window” to obtain solutions... because if this deadline is missed, both citizens and companies would have to wait for the next round - in six months – said Pavlovic and announced that the investment cycle was expected to accelerate.

He announced that the strategic plan of the Resalta company was to achieve EUR 50 million in investments in renewable energy resources in Serbia in the next two years.

Important investment in infrastructure

Lazar Krstic, Director of Energy Solutions at Petrol, says that this company, in addition to significant investments in solar and wind energy in the region, is also investing in the Battery Energy Storage System or BESS in Slovenia.

– Building only solar or only battery storage is not profitable today. It is best to have a mix. We stimulate our own production and maximum consumption. For example, in South Banat you have more than enough energy from wind farms, but you do not have that much consumption. That is why investments in infrastructure must be made – said Krstic.

These experts believe that it is crucial to determine whether the existing system should be further improved and how to adapt it to real needs.

– One very important thing, especially when we talk about small and medium-sized enterprises, is the progress of technology, especially in the field of energy storage. Today, there is a much more flexible approach, where even small consumers can optimize their consumption – says Pavlovic and gives a specific example:

– If you have a small workshop that uses electricity only a few times a week, you need to properly dimension the technical solution. On the other hand, if you have a factory with large capacities that operates 24 hours a day, seven days a week, the approach is completely different. The essence is to adapt the solution to real needs.

If there is your own consumption, you need to properly design the system, ensure that it is efficient and sustainable.

Windmills’ battle against time

Igor Dodic, an expert in corporate law and finance from the Dodic Law Firm, believes that the aforementioned government regulation is - late: if it had been introduced earlier, many projects would have already been implemented.

– In practice, this regulation can postpone projects for a period of six to ten years. This means that it was necessary to react earlier in order to create space for faster development. When we talk about new technologies and energy solutions, such as hydrogen, these are still long-term topics. We are currently talking about investments that should enable greater energy production in real time – says Igor Dodic, an expert in corporate law and finance from the Dodic Law Firm.

This regulation, Dodic believes, encourages investments in solar power plants for own consumption, but does not motivate large enough investors to build larger production capacities.

– This is a problem, because energy consumption is constantly growing. Today we have a situation where data centers and high-energy systems are increasingly being developed. Their consumption is enormous and requires serious planning of energy capacities – says Dodic.

Logistics does not forgive mistakes

Logistics and transport is an area susceptible to electrification. But how far are we from the flock of electric trucks on the roads of Serbia?

Miso Bozic, CEO of AD Intereuropa, first says that in the logistics and transport sector “you do not have the luxury of being inefficient.”

– We are moving faster than state regulations. Today, solar panels on trailers or electric trucks are an integral part of many companies’ business – says Bozic.

The green transition is also important for leasing companies. Boris Sredic from NLB leasing says that there is always a benefit when financing energy-efficient machines, because they consume less energy - that a positive effect is also obtained when replacing a 15-year-old diesel truck with a newer vehicle.

D. Klajic

Ministarstvo rudarstva i energetike Republike Srbije

DODIĆ Law

A.D. INTEREUROPA BEOGRAD

Petrol d.o.o. Beograd

Resalta d.o.o. Beograd

Trivera Energy doo Beograd

Ministarstvo rudarstva i energetike Srbije

Trivera Energy

Resalta

Petrol

AD Intereuropa

Dodić Law firm

Regulation on the Conditions of Delivery and Supply of Electricity

Đorđe Popović

Andreja Pavlović

Radoš Popadić

Lazar Krstić

Igor Dodić

Mišo Božić

renewable energy sources

RES

solar

wind farms

nuclear power plants

production of electrical energy