The National Assembly of the Republic of Serbia, on 27 November 2024, adopted the Law on Amendments and Supplements to the Law on Energy, which introduces numerous changes for businesses, households, investors, and state-owned enterprises.
One of the main objectives of the amendments and supplements to the Law on Energy is to adopt provisions of European regulations that Serbia is obligated to transpose.
Key Novelties
Lifting the Moratorium on Nuclear Power Plants:
- Enables the development of nuclear energy in Serbia, including monitoring global advancements in nuclear technologies.
- The Ministry of Mining and Energy will manage the stages of nuclear energy development, including the feasibility assessment and sources of financing.
Abolition of Net Metering for Households:
- Net metering for prosumers will end on 31 December 2026, but existing prosumers will continue using it for the lifetime of their solar plants.
Dynamic Tariff Contracts for Consumers:
- Customers can now sign supply contracts with variable electricity prices based on market changes.
- Household and small customers can access an app to compare electricity supplier offers.
Introduction of “Active Customer” Status:
- Businesses or groups who generate, store, or sell electricity independently can now participate in energy flexibility markets and ancillary services.
- This status helps decarbonize the economy, manage CO2 emissions, and secure green energy supplies.
Power Purchase Agreements (PPAs):
- Active customers can secure PPAs to decarbonize and avoid CO2 taxes, both locally and when exporting to the EU under the Carbon Border Adjustment Mechanism (CBAM).
New Energy Activities:
- New activities such as aggregation and the production/trade of unconventional fuels are now included.
- Licensing for Energy Activities:
- A new license is required for electricity storage;
- Foreign entities can apply for electricity supply licenses starting 31 December 2028, subject to conditions.
Energy Permit Exemptions:
- Exemptions for energy facilities under public-private partnerships, strategic renewable energy partnerships, and those for personal electricity use.
Energy Permit Conditions:
- New conditions for energy permits include compliance with national energy strategies, feasibility of construction on exploration fields, and alternative solutions for electricity generation.
Certification of Renewable Energy Installers:
- Introduction of certification for installers of renewable energy systems.
Hydrogen Development Strategy:
- Plans to adopt a strategy focusing on hydrogen production, transport, storage, and use to reduce greenhouse gas emissions.
Application
The Law on Amendments to the Energy Law came into force on 6 December 2024.
With the entry into force of the amendments, the Law on the Prohibition of Nuclear Power Plants in the Federal Republic of Yugoslavia ceases to be valid. To remind, this law prohibited the construction of nuclear power plants and was adopted in 1989, three years after the nuclear disaster in Chernobyl, Ukraine, which was then part of the Soviet Union.
In this regard, we would like to remind you that the Minister of Mining and Energy signed a Memorandum of Understanding in July on the development and application of nuclear energy with representatives of five ministries and 20 universities, research institutes, and energy companies.
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