The first half of 2021 in Serbia was marked by major changes in the field of energy and mining with the adoption of four new (amended) laws regulating this area, as follows:

– the Law on Energy Efficiency and Rational Use of Energy,
– the Law on the Use of Renewable Energy Sources,
– amendments to the Law on Mining and Geological Research, and
– amendments to the Law on Energy.

The main goals of the adoption of these laws and their amendments are the preservation of the environment, the fight against climate change, as well as the decarbonization of energy sector in Serbia.

A CHANCE FOR INVESTMENTS IN SERBIA

The new Law on the Use of Renewable Energy Sources is meant to be the initiator in terms of creating conditions for the development of the market of renewable energy sources, aiming to award incentives through auctions for construction of wind farms and solar power plants in Serbia and giving opportunity to natural persons and legal entities to produce electricity for their own consumption and become customers-producers (i.e. Prosumers).

This law also introduces a ban on the construction of hydropower plants of any type and power in protected areas.

FIGHT THE CLIMATE CHANGES AND CUT EXPENDITURE

The Law on Energy Efficiency and Rational Use of Energy, as its name suggests, aims to reduce non-necessary waste of energy, mainly by introducing subsidies to citizens up to 50% for financing replacements of doors, windows, then installation of insulation on facades and roofs, as well as financing replacements of coal stoves and boilers with energy efficient devices which less pollute the environment.

With this law, Serbia is harmonizing with the new EU directives in the area of environmental protection, which, among other things, implies the introduction of regulations for eco-design, which concern the labeling of household appliances that can be found on the market, as well as regulations for highly efficient cogeneration.

SIMPLER PROCEDURES AND FASTER ISSUANCE OF PERMITS AND APPROVALS WITH E-ENERGY

Amendments to the Law on Energy are enabling better harmonization of domestic legislation with the legislation of EU and create legal basis for the adoption of the Integrated National Energy and Climate Plan (NECP) and additionally regulate and expand the powers of the Energy Agency of the Republic of Serbia which aims to improve transparency and protection of competition and consumers as well as to improve non-discriminatory behavior in the market, while also introducing a government platform for electronic business called e-energy which aims to reduce bureaucracy in the process of issuing permits and approvals.

With the adoption of this law, the buyers of thermal energy will also have the right to the status of energy endangered customer and reduction of bills if they meet the prescribed criteria, as the buyers of electricity and gas already have.

MORE EFFICIENT MANAGEMENT OF GEOLOGICAL RESOURCES

Amendments to the Law on Mining and Geological Research are aiming to reduce bureaucracy and to increase investments in geological research and mining by expanding the competencies of the Serbia Geological Institute, as the most important institution in this field, and create a legal basis for the establishment of the Chamber of Mining and Geological Engineers of Serbia, which would bring together experts of various profiles engaged in various fields in geological research.

Amendments to the Law on Mining and Geological Research are now defining that geological exploration and exploitation of mineral resources are in the public interest, and certain terms and deadlines are regulated in more detail in order to make the Law on mining and geological research more precise and understandable.

Also, these amendments are creating a legal basis for electronic business in the field of mining and geology (e-mining) which will shorten approval procedure from the current 150, on average 15 to 20 day, but the application of the provisions that regulate e-mining will be delayed till the day of development of the software solution that supports this system.

Please do not hesitate to contact BOPA for further information on this matter.