Page 156 - SE Outlook Regions 2024

In 2020, Serbia adopted its Emissions Reduction Plan (NERP) with a commitment to achieve complete decarbonisation half way through the century. However, the proportion of coal in the energy mix has seen minimal change.
Serbia has significant coal reserves, particularly at Kolubara, which produces enough coal to cover around half of the nation's electricity production.
Despite the commitment to decarbonisation, Serbia is set to launch a new unit at the Kostolac coal-fired power station in the coming months, financed by Chinese support. The opening date of the new B3 unit remains uncertain. While B3 features a desulphurisation unit, concerns persist regarding potential emissions increases.
Serbia has long been dependent on Russia for natural gas imports, securing a new deal with Gazprom on favourable terms in 2022 – at a time when other European countries were seeking to reduce their consumption of Russian gas after the invasion of Ukraine.
Still, Serbia has also been working to diversify its natural gas import sources. It took an important step towards this goal in December 2023 when a new gas interconnection with Bulgaria was formally opened.
The pipeline links the Bulgarian town of Novi Iskar and the Serbian city of Nis, giving Serbia access to gas from Azerbaijan as well as the LNG terminal in the Greek port of Alexandroupolis via Bulgaria.
The recently completed Serbian segment of the pipeline has a capacity of 1.8bn cubic metres per year, covering 60% of the country's annual gas needs.
Previously, on November 15 Serbia signed a deal with Azerbaijan, securing an agreement to purchase 400mn cubic metres of natural gas annually, starting from 2024.
The largest company in Serbia’s energy sector is Gazprom-owned oil and gas company NIS. The company has adopted a business plan for 2024 that outlines capital investments totalling RSD59.7bn (€509mn).
NIS is poised to implement projects that contribute to reducing carbon emissions, aligning with the ambitious targets set forth in the Paris Agreement.
NIS announced on December 21 that the primary areas of focus include maintaining a stable supply to the market, executing a capital overhaul of the Pancevo oil refinery, sustaining oil and gas production,
156 SE Outlook 2024 www.intellinews.com