Serbia To Spend US$16 Billion on Energy Projects

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Serbia's government has confirmed plans to invest 14.4 billion euro (US$16.6 billion) in its energy sector over a seven-year period between 2028 and 2035.

Big Plans for Serbia

Serbia is looking to spend 14.4 billion euro (US$16.6 billion) on energy projects between 2028 and 2035, with power generation spending leading the way. 

Serbia Acting Minister of Mining and Energy Rados Popadic outlined the proposed spending at a recent panel discussion and reaffirmed the country's commitment to renewable energy investment. It is aiming to spend 6.5 billion euro (US$7.5 billion) in electricity production - mostly from renewable energy - in the aforementioned period. Another 2.4 billion euro (US$2.8 billion) will be invested in the transmission and distribution system, 1.2 billion euro (US$1.4 billion) in gas pipeline connections and around 1.2 billion euro (US$1.4 billion) for oil pipelines. According to Industrial Info Resources data, there are 122 power projects in the pipeline in Serbia worth more than US$10 billion, with grassroot projects accounting for more than US$7.6 billion of that. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Power Project Database can view the reports. 

Wind Dominates 

Industrial Info Resources is tracking 37 wind farm projects in Serbia worth almost US$7 billion euro (US$8 billion) in potential investment, accounting for more than two-thirds of all the power projects being tracked. Popadic said that with relation to renewable energy sources in Serbia, "Until four years ago, there were just over 400 megawatts (MW) from wind and solar, and currently we have 1,232 MW. That is three times more green energy, which shows that we are on the right track to achieving the strategic goal of having at least 45% of energy from wind and solar by 2030. What is encouraging is that the number of buyers of producers who independently produce electricity is growing." The largest wind farm project in the country is the onshore Maestrale Ring project in Vojvodina with a capacity of 862 MW. It will be built in a single phase by developer Fintel Energija and on completion will be the largest onshore wind farm in Europe. It will use 112 of the WD200 7.7-MW wind turbines from Chinese supplier Zhejiang Windey. 

Other Key Renewables

Following wind, solar power projects come in second with 1.7 billion euro (US$2 billion) in investment and hydro at 1.2 billion euro (US$1.4 billion). The key hydro project is the Bistrica pumped storage hydropower plant, which will have two 170 MW reversible hydraulic turbine generator sets and two 170 MW classic hydraulic turbine generator sets. The facility will be constructed on the Uvac and Lim rivers, in the municipalities of Nova Varos and Priboj in the southwest. Work is expected to begin in 2028. 

Industry Response

The government spending plan has been welcomed by the Association of Renewable Energy Sources of Serbia (RES Serbia), which also noted that there are still delays holding up faster rollouts.RES manager Danijela Isailović commented: "Serbia's National Energy and Climate Plan (NECP) foresees the construction of 3.5 gigawatts (GW) of new wind and solar capacity by 2030. Today, Serbia operates 13 wind farms with a combined capacity of 824 MW and boasts over 200 MW of solar power plants, which already represents solid progress. Based on these developments, I am a moderate optimist that the NECP targets can be achieved. However, further progress depends on addressing key challenges: several projects already hold building permits but are awaiting auctions, while others face delays in obtaining necessary approvals. These barriers influence the pace at which national goals can be reached. The targets are achievable, but only through the synergy of all key actors -- private investors, state authorities and financial institutions."

Key Takeaways 

• Serbia's government has confirmed plans to invest 14.4 billion euro (US$16.6 billion) in its energy sector.
• The largest proportion will go on new power projects, namely wind, solar and hydro power. 
• Industrial Info Resources is tracking 122 power projects in Serbia worth more than US$10 billion in investment.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).