New Regulation on Energy Efficiency in Serbia

The Law on Energy Efficiency and Rational Use of Energy is adopted is Serbia 

The newly adopted Law on Energy Efficiency and Rational Use of Energy (the “Law”) consists of 16 chapters which regulate the following issues:

  • conditions and manner of efficient use of energy and energy products;
  • energy efficiency policy;
  • energy management system;
  • energy efficiency policy measures: use of energy in buildings, in energy activities and end customers, for energy facilities and energy services;
  • energy labelling and eco-design requirements;
  • financing, incentives and other measures in this area;
  • establishment and operations of the Directorate for Financing and Encouragement of Energy Efficiency (the „Directorate“),
  • as well as other issues of importance for the rights and obligations of individuals and legal entities related to the efficient use of energy.

The part regulating the energy security policy envisages the basic acts determining the energy efficiency policy, which include: Energy Development Strategy of the Republic of Serbia, Program which determines the conditions, manner, dynamics and measures for implementing the Strategy) and the Integrated National Energy and Climate Plan (NECP).

It is envisaged that the Minister in charge of energy prescribes the methodology for calculating energy savings, conversion factors for conversion between primary and final energy and introduces the obligation of RHMZ to provide the data needed to calculate the degree of the day to enable more accurate calculations and estimates of energy savings.

It is also planned to digitize reporting on implemented energy efficiency measures through three databases – MVP, which is used for reporting within the NECP, as well as SEMIS and ISEM databases, which are used for reporting within the energy management system.

The Directorate has been introduced instead of the Budget Fund, which will be established as a legal entity – a body within the Ministry of Mining and Energy.

There is also an obligation to conduct regular energy audits in large companies, which are defined in accordance with the law governing the field of accounting.

Special chapters regulate the energy efficiency of publicly owned buildings, as well as the control of the heating or air conditioning system of the building.

In order to expand the practice of providing energy services, a new type of contract is being introduced – the contract on efficient energy supply.

In order to divide the field in energy into several laws, in order to more precisely delineate the roles and obligations in the application of legal regulations, the provisions related to highly efficient combined production of electricity and heat have been transferred from the Energy Law to the Law. Therefore, the Law now prescribes the acquisition of the status of a privileged producer for a power plant, i.e. a part of a power plant that produces energy from highly efficient combined production of electricity and heat, as well as a guarantee of origin for electricity produced from highly efficient cogeneration. Financial and non-financial incentives for highly efficient combined production of electricity and heat are envisaged: Financial incentives include: incentives through the system of market premiums, incentives through the system of feed-in tariffs and incentives granted by the Directorate. Non-financial incentives include: access to the system for high-efficiency cogeneration and individual participants in the energy market, conditions for connection to high-efficiency cogeneration, guarantees of origin for high-efficiency cogeneration.

Finally, there are penal provisions that prescribe misdemeanour penalties for breach of legal obligations.

The adoption of this Law should enable the realization of energy savings, security of supply, reduction of the impact of the energy sector on the environment and climate change and to contribute to the sustainable use of natural and other resources.