The Serbian Parliament has passed the amendments to the Energy Act, introducing significant reforms to the nation’s energy policy – a landmark change is lifting the long-standing moratorium on nuclear power plant construction, which has been in place since 1989 following the Chernobyl disaster. The updated legislation also includes broader measures aimed at modernizing Serbia’s energy sector.
Key Changes in the Amendments
1. Nuclear Energy Development:
The moratorium, established during the former Yugoslav era, is officially repealed. This paves the way for developing nuclear energy as part of Serbia’s strategic energy plans. The amendments introduce regulatory frameworks for nuclear energy production, covering safety standards, environmental considerations, and international best practices.
The government plans to establish a Directorate for Nuclear Energy Development. It will also prepare a Peaceful Nuclear Energy Development Program in partnership with the International Atomic Energy Agency (IAEA) and European institutions.
Serbia reportedly aims to explore the deployment of small modular reactors (SMRs) with a target capacity of 1,200 MW. International partners, including France’s EDF and other global entities, conduct ongoing technical studies and feasibility assessments.
2. Support for Renewable and Alternative Energy:
The amendments encourage the use of waste-derived fuels. They also introduce mechanisms like aggregation to enable small businesses and consumers to participate actively in the energy market. A certification process for installers of renewable energy systems is being established, aligning with EU standards.
The government plans to diversify energy sources with a mix of renewable and nuclear energy, complementing ongoing solar and gas-powered projects. Furthermore, the amendments lay the groundwork for integrating Serbia’s electricity market with neighboring countries, fostering regional energy stability.
3. Reforms for Electricity Consumers:
Consumers can now opt for dynamic electricity pricing, enabling more flexibility closely based on market rates. Additionally, net metering practices for prosumers (electricity producers who are also consumers) will be phased out by the end of 2026. Prosumers in the household category will now use net billing instead.
Furthermore, the amendments introduce the “active buyer” status, primarily for businesses, allowing them to produce, store, or sell electricity without it being their main business activity. This status also enables participation in ancillary services and flexibility markets, while providing conditions for Power Purchase Agreements (PPAs). These changes support the decarbonization of the economy by allowing businesses to source green energy, reducing electricity costs. The tools aim to prepare companies for carbon pricing, both domestically and in exports to the EU, under the Carbon Border Adjustment Mechanism (CBAM).
4. Balancing Market and Capacity Mechanisms
New provisions include creating a balancing market for electricity, ensuring that producers and consumers maintain supply-demand equilibrium. The amendments require all market participants to take responsibility for balancing deviations in the power system. Additionally, they mandate financial contributions from these participants to help maintain the system’s balance. It also introduces the concept of a capacity mechanism and opens the market for ancillary services, allowing energy storage owners and active buyers to offer their services.
These reforms reflect Serbia’s efforts to diversify its energy sources and modernize its infrastructure, ensuring sustainability, energy security, and alignment with global energy trends. Partnerships with France’s EDF and other international stakeholders highlight Serbia’s commitment to developing nuclear energy responsibly.
By Vuk Lekovic, Senior Associate, and Marko Jovic, Associate, Gecic Law
