Page 134 - bne IntelliNews Southeastern Europe Outlook 2025

60% of Serbia's energy needs.
Additional agreements, including a memorandum of understanding with North Macedonia for a new gas pipeline and a gas interconnector with Romania, aim to enhance Serbia’s energy connectivity and reduce its reliance on Russian imports.
Serbia is gradually aligning its energy policies with the European Union’s decarbonisation goals as it moves closer to EU membership.
In 2024 Serbia adopted ambitious renewable energy goals under its Integrated National Energy and Climate Plan (INECP), which outlines a strategy for sourcing 45% of electricity from renewable energy by 2030. This includes adding 3.5 GW of solar and wind capacity by the decade’s end.
State-owned Elektroprivreda Srbije (EPS) has initiated renewable projects, such as the €144mn Kostolac wind farm, which will generate enough electricity for 30,000 households when operational in early 2025. Solar energy capacity has grown significantly, from 20 MW in 2021 to over 100 MW in 2024, with projections of reaching 150 MW by the end of the year. These projects reflect Serbia’s efforts to reduce carbon emissions, such as the Saraorci solar power plant, which cuts CO2 emissions by 17,500 tonnes per year (tpy).
In 2024, Serbia lifted its 35-year moratorium on nuclear energy, signalling a transformative policy shift. The decision follows amendments to Serbia’s energy law and reverses a ban imposed in 1989 after the Chernobyl disaster. Nuclear energy is seen as a crucial component of Serbia’s long-term energy strategy, offering reliable, low-emission power to complement renewables.
Despite these efforts, coal remains dominant, powering nearly 70% of Serbia’s electricity. While renewables have seen increased investment, they still contribute a small share to the energy mix, with hydropower forming most of the non-coal energy supply. The government has acknowledged that the transition to nuclear energy will be a lengthy and costly process, potentially taking two decades to establish a functional facility.
In 2025, Serbia’s energy transition will continue to face significant challenges. While the government invests heavily in renewables, its simultaneous commitment to coal undermines decarbonisation efforts. A €450mn investment in new coal mines, set to open from 2026, highlights the complexities of balancing energy security with environmental commitments.
Meeting the targets set by the INECP, including a 40.3% reduction in greenhouse gas emissions from 1990 levels by 2030, will require substantial political will and investment. Although progress in diversifying energy supplies and adopting renewables is evident, the
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