Serbia has secured 707 million cubic metres of natural gas and 1.95 million tonnes of coal ahead of the winter heating season, strengthening its energy reserves amid volatile European markets and rising procurement costs.
The Ministry of Mining and Energy confirmed that gas stocks held in Serbia and Hungary had reached record levels, while all 60 district heating utilities were prepared for the season. State-owned power producer Elektroprivreda Srbije (EPS) has completed maintenance on coal-handling systems, with refurbishment of several thermal generating units nearing completion.
Gas Reserves and Storage Expansion
Serbia’s gas inventories provide a buffer against supply disruptions and seasonal demand increases. Its main domestic storage facility, Banatski Dvor, has a working capacity of approximately 450 million cubic metres, with an expansion programme targeting 750 million cubic metres and improved withdrawal capabilities.
The country’s gas interconnection with Bulgaria and commercial supply arrangements offer access to sources beyond traditional Russian pipeline imports. Stored volumes do not guarantee uninterrupted delivery, while international prices remain a significant financial risk.
Gas prices have reached approximately €900 per 1,000 cubic metres on international markets. Serbia’s actual procurement costs depend on existing contracts, transportation and storage expenses, and the need for additional purchases.
For Srbijagas, industrial consumers and other market participants, the challenge is balancing storage withdrawals with contracted deliveries and future replenishment costs. Higher prices can squeeze industrial margins and increase working-capital requirements.
Coal Stocks Support EPS Operations
EPS holds 1.95 million tonnes of coal, close to its target of approximately 2 million tonnes. The reserves are particularly important as weak Danube inflows have constrained hydropower production, increasing reliance on thermal generation and electricity imports. Nevertheless, stockpiles must be supported by reliable generating units, adequate fuel quality, mining output and transport infrastructure.
EPS recorded a 5% decline in coal production and a 5% fall in electricity generation during the first half of 2026. At the same time, electricity procurement and system-access expenses increased 21% to approximately €904 million, highlighting the cost pressures facing the power sector despite substantial fuel reserves.
Electricity Prices and Financial Risks
Serbia’s winter electricity balance will depend partly on regional market conditions, including prices on SEEPEX, Hungary’s HUPX and Romania’s OPCOM. Strong renewable generation can create opportunities for cheaper imports, while cold weather, low wind output and generating-unit outages can push prices higher. For EPS, balancing domestic production with purchased electricity is essential to managing costs. Industrial consumers also face pressure to strengthen procurement strategies and maintain sufficient liquidity.
Higher energy expenses create additional risks for manufacturers, banks and district heating utilities. Lenders must assess borrowers’ ability to absorb or pass on rising costs, while heating companies may face financial pressure if fuel expenses increase faster than approved tariffs. Although all 60 district heating systems are technically prepared, their financial resilience will depend on consumption, fuel prices, payment collection and the financing of operating deficits.
