Energy: Energy Permits in Serbia

License for performing energy activities in Serbia

Introduction

Both in the world and in Serbia, the development of energy as an economic activity is noticeable, as well as the growing private initiative in terms of performing energy activities, and consequently more and more questions and doubts arise regarding the issuance of licenses for energy activities.

An energy license (“License”) is an act of public authority that gives permission to perform a certain energy activity.

The Energy Act (“Official Gazette of the RS”, No. 145/2014, 95/2018 – other law and 40/2021 “EA“) regulates the procedure for submitting applications and issuing licenses.

The license is issued for each energy activity separately and the license is non-transferable.

 

Who can apply for a license?

The following can apply for a license:

  • domestic entrepreneur;
  • domestic legal entity and
  • foreign legal entity, but only for performing the energy activity of wholesale electricity supply and wholesale supply of natural gas.

 

Who is in charge of issuing the license?

Pursuant to Article 49 of the EA, the issuance of the License is within the competence of the Energy Agency of the Republic of Serbia (“Agency“), except in the case of thermal energy where the local self-government body is competent.

 

What are the conditions for issuing a license?

In order to apply for a License, the following conditions must be met:

  • that the applicant is established or registered to perform the energy activity for which the license is issued;
  • that a use permit has been issued for the energy facility, except for facilities for which the regulation governing the construction of facilities does not provide for the issuance of a use permit or for facilities for which no use permit has been issued, and a decision on legalization was formed and whose composition was determined in accordance with the regulations on planning and construction for the issuance of use permits;
  • that energy facilities and other devices, installations or plants or pressure equipment necessary for performing energy activities meet the conditions and requirements established by technical regulations, regulations on fire and explosion protection, as well as regulations on environmental protection, i.e. regulations governing water roads, water protection and navigation and inland ports;
  • that the applicant meets the prescribed requirements in terms of professional staff to perform technical management, operation and maintenance of energy facilities, or requirements in terms of number and professional qualifications of employees to perform maintenance of energy facilities, as well as jobs in these facilities;
  • that the applicant meets the financial requirements for performing energy activities;
  • that the director, i.e. members of the management body have not been convicted of criminal offenses related to the performance of economic activity;
  • that the applicant has not been imposed a measure prohibiting the performance of activities or if the legal consequences of the imposed measure have ceased;
  • that the applicant has proof of the legal basis for the use of the energy facility in which the energy activity is performed;
  • that no bankruptcy or liquidation procedure, i.e. compulsory liquidation has been initiated against the applicant.

 

Which energy activities do not require a license?

 

The EA exhaustively lists those energy activities for which it is not necessary to obtain License, and they are as follows:

  • production of electricity in facilities with a total approved capacity of up to 1 MW, unless the same energy entity produces electricity in two or more energy facilities whose total approved capacity exceeds 1 MW, regardless of whether they are connected to the system via one or more connectors;
  • production of electricity exclusively for own needs;
  • electricity storage;
  • transport of oil through oil pipelines exclusively for own needs;
  • transport of oil derivatives through product pipelines for own needs;
  • transport of oil, oil derivatives and biofuels by other forms of transport;
  • storage of oil, oil derivatives and biofuels for own needs;
  • production of thermal energy in facilities up to 1 MW and production of thermal energy exclusively for own needs;
  • combined production of electricity and heat in thermal power plants – heating plants up to 1 MW of total approved electricity connection and 1 MW of total heat, as well as combined production of electricity and heat exclusively for own needs;
  • retail sale of liquefied petroleum gas in bottles of less than 12 kg;
  • within the energy activity of trade in oil, oil derivatives, biofuels, bioliquids and compressed natural gas, liquefied natural gas and hydrogen for trade in high purity propane (≥ 99.5%), with permitted content of C3 and C4 saturated hydrocarbons up to 2% and boiling point – 42.1 ° C, which is used as a refrigerant.

 

Significant deadlines for issuing licenses

The license is issued by the Agency or the competent local self-government body within 30 days from the day of submitting the request.

The license is issued for a period of 10 years, and for the production of electricity, combined production of electricity and heat and the production of heat for a period of 30 years, with the possibility of extension.

 

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