BELGRADE — The European Commission’s Serbia 2026 Report identifies outdated energy infrastructure and serious sector gaps as constraints on Serbia’s industrial competitiveness as electricity demand rises, renewable generation expands and the country prepares for tighter EU carbon rules. The assessment is dated 4 November 2026.
The report says much of Serbia’s energy system is outdated. Coal remains the country’s main source of electricity, while Serbia is highly dependent on Russia for gas. It has begun diversifying imports through Azerbaijan and EU markets.
For manufacturers, data centres and large exporters, energy concerns extend beyond power prices. Reliability, connection capacity, balancing exposure and electricity’s carbon content increasingly influence site selection, financing and access to EU supply chains. These factors bring the condition of the energy system into company investment decisions.
The Commission’s assessment presents grids and generation as part of Serbia’s investment proposition, rather than only a utility-sector issue. The country’s ability to support new industrial demand will depend on investment in transmission, flexible generation, storage, renewable integration and transparent market rules.
Delays in modernising energy infrastructure can weaken Serbia’s ability to attract the next generation of export-oriented projects, the report says.
