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In the next two or three years, the price of electricity in Serbia should reach the market value and, should it be adjusted now, would be higher by 20 to 30%. The current price is below the development and sustainable level, which is why price increase is inevitable. Otherwise, the Serbian Electric Power company’s investments in building new power plants needed for energy security of the country, would be jeopardized, it has been warned at the conference ''Renewable Energy and Electricity Price in Serbia'', held in Belgrade. Tamara Prodanovic has more.
Market trends define almost 65% of the electricity price. When it comes to its adjustments, the plan is to reach the market value in two or three years, stated Head of the Department for Economic and Financial Affairs with the Energy Agency Gordan Tanic. He could not specify the exact price increase, but he added that Serbian Energy Development Strategy envisages realistic electricity price to be reached by the year 2025. Prior to that, it is necessary to relocate the social component of the energy sector, which is why the Government adopted the Regulation on Protection of Energy Consumers. It is necessary to first protect the socially vulnerable population, and to formulate the price that would generate profit for the energy supplier that will in turn fill the budget holes. The price of electricity in Serbia, as of August increased by about 11% for households and 12.8% for businesses, remains among the lowest in the region and in Europe. After the latest increase in September, the price of gas in Serbia is similar to market prices in the region and in Europe, but there is still room to rationalize the costs of Srbijagas, the company currently drowning in debt.
Serbia has great potentials in the field of renewable energy resources, particularly when it comes to exploitation of wind energy in the region of Banat, Vojvodina, and southeastern Serbia. Investors are interested, but undefined legal framework, lack of transparency and administrative delays discourage foreign companies’ investments in Serbia as long as it does not comply with the EU standards. Analyses show that the consumption of electricity in Serbia will increase by 700 MW by the end of the decade. In this period it has been envisaged to replace old plants with new production facilities - thermal power plants, hydropower plants, and renewable energy sources, which could represent some 27% of the total power consumption should capacities of 1,100 megawatts be built. This is why, over the next five to seven years, the Serbian Association for Wind Energy Production SEWEA wants to invest 1.5 billion euros in wind farms, with 1,000 megawatt capacity, which would be in line with European standards. Given that 70% of wind energy is generated during winter, it can stabilize the power supply in the heating season, when it is the most expensive and most needed. Radio Srbija
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