Among priorities of Energy Sector Development Strategy of the Republic of Serbia by 2015 which ‘…present a precondition for an economically certain, energy-efficient and environmentally acceptable energy system development …’ is use of New Renewable Energy Sources, with hydro energy being one of them.
Hydro potential in total has been estimated to be 31.000 GWh with a possibility of constructing several large–scale power plants as well as numerous small (below 10 MW). Namely, according to Cadastre written in late ’80s, 869 locations across the country are suitable for those small power plants (survey excluded KiM). This number might grow though, but, even with this being realized, the Government would save $52 million due to the fact that 1 KWh of electricity produced by hydro power plant is equal to 1.6 – 2.2 kg of coal, or 0.25 kg of crude oil! Therefore, Regulation enhancing incentives for those who would love to invest in the field has been brought in 2006. Numerous problems, however, are encountered. First of all, unreasonably low price of electricity, precisely bottom purchase price, has direct influence onto investments. Uncertain regulation is another issue having for its consequence situation which is not transparent. Namely, more than 30 licenses had to be obtained. Furthermore, coordination among institutions which give those permissions is poor making it more complicated. Lastly, access to the power grid might be rather difficult either because transmission line cannot receive so much energy or they are far away from a power plant.
Climate change and oil uncertainty are facts that should influence further development of renewable energy sources. Also, one fourth of energy required in the Republic might be covered this way! The Government, therefore, has to reduce intensity of legal hoops as well as to give subventions to those interested on our way to sustainable future.
Written by Ivana Letic
