Since the Energy Community Treaty came into effect in 2006, an agreement between the European Community, Serbia, and other regional countries, Serbia has been obligated to align its national legislation in the energy sector with the European Union’s legal standards. To advance the reform process in the energy sector, Serbia adopted the Energy Law in 2014, which aims to establish conditions for the development and efficient operation of all entities conducting energy-related activities according to market principles, while also harmonizing this law with EU regulations.
As part of this ongoing process, the Energy Law Amendment Acts of 2021 and 2023 were adopted.
Following decisions by the Energy Community in 2022 that required Serbia to incorporate certain EU regulations from the Third and Fourth Energy Packages, a deadline for alignment was set for December 31, 2023. However, additional obligations in December 2023 extended the deadline for incorporating EU Regulation 869/2022, concerning trans-European infrastructure guidelines, to December 31, 2024.
The draft law on amendments to the Energy Law, adopted by the Government of Serbia, specifically addresses fulfilling this obligation, allowing for the incorporation of regulations from both packages, so Serbia can meet its commitments to the Energy Community.
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Key Provisions Introduced in the Draft Law
Below are some important changes included in the draft law on amendments to the Energy Law.
The draft law introduces new terms and their definitions, including the concept of “energy poverty.”
It provides for the adoption of a Hydrogen Development and Usage Program, as well as a Program for the Development and Use of Thermal Energy. These programs aim to define the directions and public policies for production and utilization in these sectors. For hydrogen, additional provisions cover its transportation and storage.
In terms of supply security, there is a requirement to establish a Special Working Group for Energy and Energy Supply Security to monitor the supply to the domestic market. Additionally, the Ministry is required, on the Agency’s recommendation, to set system reliability standards in a Supply Security Report.
The draft law mandates the appointment of a competent authority in Serbia responsible for planning and managing risks in the electricity sector, identifying scenarios for energy crises, and developing and implementing a readiness plan. A Risk Readiness Plan, based on crisis scenarios, will be adopted at the Ministry’s proposal and updated every four years.
Regarding energy activities, a new activity, “aggregation as a market activity,” is introduced. New conditions are specified for when an energy permit is not required for constructing energy facilities, and new requirements for issuing energy permits are also specified. The scope of electricity production has been expanded to include power plants using two or more electricity generation technologies, including facilities for storage integrated into a single production system.
The capacity assurance mechanism is also addressed, including when the Government can implement this mechanism to eliminate deficiencies in electricity production and transmission systems. From July 2025, generation capacities emitting more than the permitted CO2 level will not be eligible for this mechanism. The transmission system operator will be responsible for procuring necessary capacities.
Responsibilities have been increased for both transmission and distribution system operators.
For connecting power plants to the distribution system, the process will begin by submitting a request to the distribution system operator to prepare a connection study. The connection study is not required for power plants with an installed capacity of less than 50 kW.
Concerning advanced metering systems, it specifies the cases in which end-users are entitled to an advanced meter.
Provisions related to nuclear energy have also been added, defining phases in the development of a civil nuclear energy program. It states that the Ministry will perform expert and executive tasks related to assessing the justification of adopting a nuclear energy program, its jurisdiction, and sources of funding for activities within the stages of assessing the justification of nuclear energy development. Additionally, on the day this law comes into effect, the Law on the Ban of Nuclear Power Plants in the Federal Republic of Yugoslavia will be repealed.
Katarina Vuinac
