Clarion Partners - Owner's Engineer

New Energy law in Serbia opens the Energy Market in 2012

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National Assembly of Serbia adopted the new Energy Law, which should liberalize all parts of energy market in Serbia. With new law on energy, another harmonizatio step was accomplished in Serbia path to EU membership.

New energy law in Serbia, enforces the role of Energy agency of Serbia, increases the security of supply, procedures for investments projects are simplified, increases the energy efficiency issues and also the growth of investments into the Renewable energy sources.

According to the new law, starting from 1st October of 2012 the Energy agency will be determining the prices of electricity and gas, instead of Government of Serbia as it was the case so far.

The new energy law projects the phase in liberalization of electricity market and market of electricity starting from 1st of January 2013. The right for public supply will only be provided to consumers who are connected on grid network ( distribution grid), and starting from 1st January 2015 small consumers and households will also be in position to choose their supplier. Big consumers are getting this opportunity starting from next year.

New energy law is more promotional for investments into renewable energy sources, thru simplified procedures for investments and introduction of preffered producers of energy coming from biomass, wind, water, solar and geothermal energy.

Temporary status of preferred electricity producer is being introduced for wind energy and sun energy with duration of three years with possibility of extension for one more year. Conditions for acquiring of this status are energy and civil construction permit, and banking guaranties in value of 2% of the total project value.

The money for paying off the electricity from preffered producers will be supplied from end users by paying the special fee for incentives, which will be presented separately on the electricity bill.

According to the new energy law in Serbia, the open electricity market will be established , with creation of energy exchange, as well as the bilateral market and balancing energy market

The new term of energy endangered buyer will be introduced, which will have special protection and right for delivery of certain quantity of electricity and gas, different criteria for disconnection considering its social or health status in the community.

New energy law introduces the guaranties of origin for electricity coming from renewable energy sources, which will allow to producers to export the green energy. Guaranties will be issued per quanity unit starting from 1MW and will last for one year.

In accordance with harmonization process with European regulations, the new right for access to gas pipelines and grid network are allowed, with certain exceptions.

It is planed that the energy permits are issued for period of three years, instead of 2 years as it was the case so far. Energy licenses will be valid for 10 years, except for producers of electricity and heat energy whose license will be valid for 30 years

The energy law introduces also energy inspectors and inspectors for pressure parts and equipment for supervision of facilities for electricity production, production, transport and storage of oil and gas also. The inspection will be under the ministry in charge for energy sector.


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