Page 112 - SE Outlook Regions 2022

2021, after shutting them down a year earlier amid a slump in demand
caused by the pandemic.

Zijin Bor Copper has outlined plans to invest $1.9bn over the next six
years, as announced by the Serbian government. China's Zijin Mining
Group previously injected $350mn in the capital of RTB Bor when it
bought the Serbian copper mining and smelting company in December
2018.

3.10.4 Energy & power

Like other countries in Central and Southeast Europe, Serbia is
embarking on its green transition but will not easily give up traditional
energy sources such as coal, as communities depend on these
industries for their livelihoods.

Serbia has pledged to reduce its carbon emission levels to meet EU
standards, which includes eventually reducing or abandoning coal as
fuel to produce power and heat, and replacing it with renewable
capacity. Serbia says it is targeting 40% renewables in its energy mix,
but for the moment it remains heavily dependent on coal and it has
been building new coal capacity.

According to President Aleksandar Vucic, Serbia is not considering
shutting down thermal power plants for now, despite an agreement with
the Energy Community. Vucic says Serbia needs a secure source of
electricity in the current turbulent times.

Meanwhile, the share of renewable energy generation is growing, and
the energy and mining ministry estimates that the share of renewable
energy sources in electricity consumption will come in at around 25%
for 2020.

Serbia imports around 85% of the natural gas it uses from Russia. As
the expiry of its long-term contract approached, Vucic agreed with
Russian President Vladimir Putin that the gas price would be kept at
$270 per 1,000 cubic metres for six months. Putin also promised
"exceptional" terms after that period — which takes Serbia past the
April 2022 elections — comes to an end.

To boost energy security Serbia is considering buying a stake in a
nuclear power plant in the region (most likely Bulgaria or Hungary) or
even building its own small modular nuclear power plant. Serbia has
agreed on cooperation with the Russian Institute for Nuclear Energy.

3.10.5 Construction

112 SE Outlook 2022 www.intellinews.com