Focus on Energy, 2010 - Karanovic & Nikolic

SERBIAN ENERGY POLICYThe foundations of the Serbian energy policy are to be found in the Energy Sector Development Strategyto 2015. This was issued by the Serbian Parliament in November 2004 (the “Energy Strategy”). Startingfrom the existing situation in the sectors of energy consumption, energy production and availableenergy resources, the Energy Strategy defines the main goals and priorities for the development of theenergy sector over a 10-year period:istingenergy sources and facilities in the electric sector (including the production, transmission anddistribution of electric energy), oil, gas and heating sectors.main goals here is the substitution of electric energy with natural gas for thermal energy services, adecrease in energy consumption in the production of energy, a decrease in the losses suffered in thedistribution of electric energy and natural gas and the introduction of new energy efficient electricappliances, equipment and facilities.“RES”) and the utilization of new energytechnologies, equipment and facilities which are energy efficient and environmentally friendly.cycle plant and the construction of local combined heat and power (“CHP”) facilities with low tomedium capacities.17the participation in the planning of new strategic energy sources and facilities such as the potentialconnection to regional and pan-European infrastructural systems.The program for the realization of development priorities set in the Energy Strategy is defined by theProgram for the Implementation of the Energy Strategy 2007-2012 (the “Energy Program”), issued bythe Serbian Government (the “Government”). This program will run for a period of 6 years. The EnergyProgram sets the dynamics of the implementation of the priorities set in the Energy Strategy, energyfacilities which need to be constructed, concessions which need to be granted for the construction ofenergy facilities, measures for the stimulation of investment in the energy sector, measures for the improvementof energy efficiency and the utilization of RES, and the protection of the environment.FOCUS ON ENERGYOn an annual level, the energy Balance (the “Energy balance”) sets out the quantities of energy neededfor the given year, available energy resources, the manner of supply of energy to consumers, the necessarysupplies of energy and the capacities of energy facilities which need to be reserved in order to securea continuous and regular supply of energy to consumers. The Energy Balance is prepared by the Ministryof Mining and Energy and is adopted by the Government.SERBIAN ENERGY SECTOR – OVERVIEWIntroductionEnergy is one of the largest sectors of the Serbian economy, accounting to some 10% of the Serbian GDP.The Serbian energy sector consists of oil and natural gas industry, coal mines, an electric power system,a decentralized municipal district heating system and industrial energy. Activities in the energy sectorinclude the production of domestic primary energy, the importation of primary energy (mostly oil andnatural gas), the production of electric power and thermal energy, the production and the secondary processingof coal and the transport and distribution of energy and energy products to energy consumers.