According to progress in implementing recommendations from the White Book by the Foreign Investors Council, the energy sector has emerged as the leading sector. Out of a total of eight recommendations for the energy sector, significant progress has been achieved on five, and some progress on the remaining three, according to a statement by the Ministry of Mining and Energy of the Republic of Serbia.
Specifically, in the recently published annual report by the Foreign Investors Council, the energy sector ranked first in the overall rating for 2024 with an index of 2.63 out of a maximum of three, significantly higher than the 2023 index of 2.30.
“These recommendations provide a solid platform for dialogue with investors on how we can improve the business environment in Serbia and achieve greater success in reforms,” explained Dubravka Đedović Handanović, Minister of Mining and Energy.
“The energy sector is rated the highest in the White Book of the Foreign Investors Council. The sector is undergoing a profound transformation marked by significant improvements in the regulatory framework, enhanced supply stability, and accelerated public investments, creating a predictable framework for private sector investments. The positive ratings of reforms in the energy sector are a recognition of the work accomplished so far, while the recommendations guide us on where further improvements can be made,” the minister stated.
The White Book also highlights progress in the transformation of “Elektroprivreda Srbije” (EPS) from a public company into a joint-stock company.
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According to the minister, changes in the EPS governance structure have been implemented, including the appointment of a new Supervisory Board, representing key steps towards the professionalization of EPS management.
She also noted that the implementation of the EPS transformation plan has commenced, aimed at increasing efficiency and introducing management changes with annual goals and greater accountability for managers. “This sets an example for the reforms to come in other energy companies,” she added.
Amendments to the Energy Law have enhanced the regulatory framework in line with the EU’s Third Energy Package and created conditions for integration with the EU market.
“By the end of the year, the formation of the first regional electricity exchange in the region will be completed, involving Serbia, along with two EU member states—Hungary and Slovenia. This will positively impact the investment environment,” said Minister Đedović Handanović.
The annual report of the Foreign Investors Council also recognizes achievements in “greening” the energy portfolio.
As the minister emphasized, the introduction of auctions for granting market premiums for renewable energy sources has opened opportunities for a new investment cycle in this sector, enabling competitive electricity purchase prices.
The second round of auctions will be announced by the end of November, the minister said, highlighting the success of the first round last year, which included nine solar and wind projects and over one billion euros in investments.
“With the first green production capacities of EPS, such as the solar and wind park in Kostolac, and strategic partnerships for one gigawatt of solar power plants, we are moving closer to achieving the strategic goal of having every second megawatt-hour come from clean sources by 2030,” the minister noted.
As stated in the White Book, the inflow of foreign direct investments increasingly depends on the availability, predictability, and structure of certified green energy supply. Issues such as the percentage of renewable energy available on the grid, further development of renewable energy power plants, and the ability to guarantee green energy supply through corporate power purchase agreements are gaining importance and becoming decisive factors for investor decisions in Serbia.
In the field of energy efficiency, the White Book notes that a significant number of local governments have started implementing energy performance contracting projects for public lighting.
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