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The Government of the Republic of Serbia

In the service of citizens

Germany important partner of Serbia in energy transition

Belgrade, 10 May 2022

Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlovic spoke today with German Federal Government Special Representative for the Countries of the Western Balkans Manuel Sarrazin about cooperation between the two countries in the process of energy transition, joint projects and plans for the development of the energy sector of Serbia.

Mihajlovic underlined on this occasion that energy is the most important topic for Serbia even if there were no war in Ukraine because we are in the process of energy transition.

The Deputy Prime Minister said that a new legislative framework has been adopted and that Serbia is now in the process of adoption of an integrated national climate and energy plan and a new energy development strategy, in whose preparation organisations of civil society are also taking part.

She noted that it is certain that we will have to gradually rely less and less on low-quality lignite, from which we are now getting almost 70 percent of energy, and to open space for other sources, first and foremost through the construction of reversible hydroelectric power plants and investment in renewable energy sources.

According to her, the share of wind and solar energy in Serbia’s energy mix currently stands at only 3.5 percent, both for the production of electricity and heat, where there is space for a greater citizen involvement in energy transition, and for cooperation with the private sector on large projects.

Mihajlovic assessed that energy efficiency is one of the pillars of our energy strategy in which we also invest by providing subsidies to households and investing in public facilities, because Serbia currently consumes around 4.5 times more energy per square metre than Germany or some other EU countries.

The Deputy Prime Minister underlined that diversification of sources is a priority in the gas sector so that Serbia would not depend on one supplier solely.

Next year when the gas interconnection with Bulgaria is finished we will have a possibility to obtain gas from other suppliers too. Our plan is to build interconnections and to connect with other neighbours too, North Macedonia, Bosnia and Herzegovina, Romania, Croatia, as well as to build new gas storage facilities, the Deputy Prime Minister said.

The participants in the meeting said that the value of the projects implemented together with the German KfW Bank is approximately €800 million, which are primarily related to the modernisation of district heating systems, including the construction of new biomass heating plants, but also to the development of transmission network and RES investments.

Speaking about Germany's experience in the energy transition, Sarrazin pointed out that it is very important to explain this process to the citizens, and that there is a clear path, although the results do not always come at the desired speed.

He pointed out that there is a strategic partnership with Serbia in the field of renewable energy sources and interest in further cooperation in this area with the government of Serbia and civil society.

Sarrazin highlighted the importance of diversification in the field of gas supply, citing the results that Germany has achieved so far in reducing dependence on imports of energy and raw materials from Russia.

The meeting was also attended by German Ambassador to Serbia Thomas Schieb, according to a statement from the Office of the Deputy Prime Minister and Minister of Mining and Energy.