Electricity storage becoming new investment field in Serbia

In recent years, electricity storage has become one of the most important segments of energy development in Serbia. Therefore, battery storage systems are no longer seen as an additional option, but as an important part of modern energy projects.

Their role is particularly evident in renewable energy sources. Unlike traditional power plants, electricity production from the sun and wind depends on weather conditions and often does not follow the current needs of consumers. This is precisely why energy storage enables the storage of surpluses and their use in periods when production is lower or consumption is higher.

Storage systems contribute to reducing the deviations between planned and actual production, increase the flexibility of the power system and can participate in providing auxiliary services necessary for its stable functioning. They can also improve the economic sustainability of projects, stabilize investor income and increase the attractiveness of energy plants for financing.

The importance of energy storage is also recognized in domestic legislation.

– With the amendments to the Energy Law from 2024, electricity storage was clearly defined as a separate energy activity for the first time. This has made an important step towards creating a more stable regulatory framework for the development of these projects – explain the lawyers from the Stojkovic Advokati office.

Among the most significant innovations was the introduction of the obligation to license the electricity storage activity, more precisely - the positioning of storage systems within the electricity sector and the abolition of the obligation to obtain an energy permit for the construction of facilities intended for energy storage.

– Thanks to these changes, investors today have a much clearer legal framework than they did a few years ago. However, although the basic legal foundation has been laid, the development of regulations is not complete. Many details still await additional regulation through by-laws, market rules and the practice of competent institutions. This is precisely why investors, developers and financial institutions pay special attention to the interpretation of existing regulations and monitoring future regulatory changes – assess the lawyers.

According to them, one of the key issues relates to the connection of storage systems to the electricity grid. Depending on whether the storage is developed as a stand-alone facility, part of a solar power plant, wind farm or a more complex hybrid system, different regulatory and technical requirements may arise. The capacity of the network, the method of connection and compliance with the rules of the system operator are important segments of each project.

– In addition to the connection, the issue of licensing is also attracting significant attention. Although the law provides for mandatory licenses for the performance of energy storage activities, the market expects additional clarifications through regulatory practice and secondary legislation. Therefore, it is important for investors to assess the regulatory status of the project at an early stage of development in order to avoid possible delays or additional costs – say the lawyers.

The market share of storage systems is also an important challenge. One of the main reasons why investors invest in these technologies is the possibility of generating income through electricity trading, system balancing and the provision of ancillary services. However, the rules governing these activities are still developing, so the market model of the project often becomes as important as its technical solutions.

– Financing is another area in which regulatory issues are of great importance. Banks and investment funds are increasingly recognizing the potential of battery storage projects, but at the same time carefully assessing regulatory risks. The success of financing often depends on how clearly the legal aspects of the project, contractual relations and regulatory compliance strategy are defined – say the lawyers, explaining the regulations.

Further development of the energy storage market is expected through the adoption of new by-laws, decisions of the Energy Agency of Serbia and the harmonization of domestic regulations with the rules of the European Union and the Energy Community. Special attention is paid to licensing issues, technical conditions of plant operation, balancing responsibility and procedures for connecting to the grid.

Experts emphasize that the absence of detailed rules does not represent an obstacle to the development of projects. On the contrary, the market for battery storage systems in Serbia is already showing signs of growth, while the regulatory framework is adapting in parallel to technological changes and the needs of the energy sector.

– Battery storage is no longer just a technical issue, but is becoming one of the key legal, regulatory and investment issues for all participants in the energy market. As Serbia continues to modernize the energy sector and increase the share of renewable energy sources, electricity storage is gaining an increasingly important role in planning new investments. For investors who want long-term successful projects, understanding the regulatory framework for battery storage is becoming as important as choosing the technology itself – conclude the lawyers of the Stojkovic Advokati office.

Stojković Advokati

Stojković Advokati

electricity storage

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