News on Renewable Energy in Serbia
The Law on the Use of Renewable Energy Sources was adopted
In order to increase the share of electricity production from renewable energy sources, the National Assembly of the Republic of Serbia adopted the Law on the Use of Renewable Energy Sources (the „Law“) at its session held on 20 April 2021. The Law was published in the Official Gazette of RS no. 40/2021 and enters into force on 30 April 2021.
Constitutional basis for passing the Law
The constitutional basis for the enactment of this Law is contained in the provision of Article 97 of the Constitution of the Republic of Serbia.
Area of regulation
This Law regulates:
- use of energy from renewable sources;
- targets for the use of energy from renewable sources;
- method of determining the share of renewable energy sources of the Republic of Serbia in the gross final energy consumption;
- integration of energy from renewable sources into the market;
- incentive systems for the production of electricity from renewable sources;
- guarantees of origin of electricity;
- production of electricity from renewable sources for own consumption;
- use of renewable energy sources in the field of heat and transport;
- special procedures related to the construction and connection of energy facilities using renewable energy sources;
- basics of mechanisms of cooperation with other countries in the field of renewable energy sources;
- supervision over the implementation of this Law;
- as well as other issues of importance for renewable energy sources.
The Law first stipulates that the use of energy from renewable sources is in the public interest and of special importance for the Republic of Serbia.
Incentives for the production of electricity from renewable sources are implemented in a certain incentive period through a system of market premiums and a system of feed-in tariffs.
Market premium is a type of operating state aid that is a supplement to the market price of electricity that market premium users deliver to the market and which is determined in eurocents per kWh in the auction process.
A feed-in tariff is a type of operating state aid that is granted in the form of an incentive purchase price guaranteed per kWh for electricity delivered to the electricity system during the incentive period.
They are retained only for small plants and demonstration projects.
The production of electricity from renewable energy sources for own consumption is regulated.
The institute of prosumer is introduced.
The prosumer has the right to:
- produces electricity for its own consumption,
- to store electricity and
- delivers the surplus produced electricity to the electricity system for sale.
The prosumer has the right to reduce the bill in the next billing period, i.e. to be compensated by the supplier for the excess electricity that he delivers to the electricity system.
Citizens can form a community of renewable energy sources. The Renewable Energy Community („Community“) is a legal entity established in accordance with the law governing the legal status of the association and based on the open and voluntary participation of its members. The primary goal of establishing a Community is to use renewable energy sources to meet the energy needs of community members in a sustainable way that encompasses environmental, economic or social benefits for members as well as the local community and society.
In order to increase the use of energy from renewable sources, early development technologies that use new renewable sources, such as green hydrogen and other energy sources, can be encouraged. Green hydrogen can be used in the field of thermal energy, traffic and natural gas in accordance with the provisions of this Law and the law governing energy.
The Law created space for complete digitalization of all procedures in the Ministry of Mining and Energy.
The Ministry of Mining and Energy supervises the implementation of this Law. Finally, there are penal provisions that prescribe penalties for economic offenses and misdemeanors.
The adoption of the Law aims to ensure that at least 40% of energy in the Republic of Serbia comes from renewable sources by 2040.