Serbia adopted legislation in 2026 to transpose the Electricity Integration Package, moving closer to integration with the European Union electricity market. The European Commission says the package must be fully transposed and implemented before market coupling can proceed. Coupling also requires cross-border capacity allocation.
The country’s transmission system operator, EMS, has not yet allocated capacity for electricity trading on all cross-border interconnections. That leaves a further condition for market coupling outstanding. Coupling can improve price formation, cross-border liquidity and the efficient use of interconnectors.
In January 2026, Serbia implemented a regulatory framework for market-based purchase of reserves, including aggregators. The measure advanced balancing-market design by introducing a market-based approach to reserve procurement.
Serbia’s retail electricity market is largely liberalised, but public intervention in price setting remains prevalent. The guaranteed electricity supplier is appointed by law, rather than through a market process. Closer integration would expose Serbian generators and industrial consumers more to regional prices, congestion and balancing costs. The transition involves not only regulatory alignment but also a change in how electricity value and risk are determined.
