Energy and Mining Industry
- A variety of unexplored energy potential: hydro, solar, geothermal, wind and bio mass
- Construction of small hydro plants (up to 10 MW) with production of 1,800 GWh/year possible on almost 900 locations
- Great variety of renewable energy solutions
- Big potential for further technological improvement with low operating cost
Foreign investors started entering the Serbian Energy and Mining sector on a large scale during 2001. In the last three years more than 80 laws have been adopted or modified in order to facilitate the inflow of foreign investment in this sector. Two of the most important laws are the Energy Law and the Law on Concessions, established on the basis of the European Union laws. All activities concerning planning, technical and other regulations, concessions and construction of facilities must be in accordance with the above mentioned laws.
In order to assure better implementation of these laws two Government agencies were established: Serbian Energy Agency and Serbian Energy Efficiency Agency. Thanks to the improvement of the overall business environment and significant support of the legal framework, the Serbian energy sector is faced with positive challenges and the presence of major world players in country.
The energy sector in Serbia is primarily based on large deposits of lignite mostly used as a main fuel for thermal power plants. Copper production is the primary economic branch in Eastern Serbia. Key comparative advantages of nonrenewable industry in Serbia are skilled staff, low shipping costs, and prosperous and unexplored copper deposits. In the near future, state owned companies from this sector will be reconstructed and privatized, existing energy systems will be modernized and the new ones will be built, new energy efficiency system, and technology networks will be introduced.
Renewable energy systems are specifically attractive for standalone applications in Serbia. Installation of generators supplied by hydro, solar or wind energy is cost effective and currently one of the most attractive investment opportunities in the Serbian energy sector. In addition, construction of small hydro plants (up to 10 MW) with production of 1,800 GWh/year is possible on almost 900 locations on the flows of rivers Morava (2,300 GWh), Lim (1,900 GWh) and Danube (1,000 GWh).
The largest companies are state owned, with main business activities in electricity production, transmission and distribution. Furthermore, managing the electricity system and exports–imports of electricity is powered by the same companies. In 2006, Serbia is seeking to restructure the energy sector. The biggest company in this sector is “NIS”, the state–owned oil company planned to be privatized, renovated and modernized in the area of its infrastructure, as well as, the business environment.
