Serbia’s energy sector faces a complex transition. While the country has significant lignite reserves, reliance on coal results in higher emissions per kilowatt-hour and makes the system vulnerable due to aging thermal power plants. Rapid full replacement of coal with renewable energy—solar, wind, hydro, biomass, and geothermal—is technologically possible but requires major investments in energy storage (reversible hydro plants, batteries, heat storage) and system flexibility, as well as integration of green hydrogen technologies.
Currently, Serbia’s renewable share (34–38%) is largely from large hydro plants, while wind and solar capacity is still developing. Variability in hydrology and the age of thermal plants cause Serbia to oscillate between being a net electricity exporter and importer. Strong interconnections with neighboring countries help maintain supply security.
Decarbonization will require accelerating wind and solar deployment, expanding storage solutions, enhancing grid flexibility, and implementing demand response mechanisms to minimize ad hoc electricity imports. Growth in electricity demand is expected with transport and heating electrification.
Financing renewable projects has traditionally relied on private investors, EU funds, and citizens. However, EPS, Serbia’s dominant power company, must also play a major role, despite limited profitability, to meet ambitious decarbonization goals. Public-private partnerships and “build-operate-transfer” models may offer viable pathways, though implementation remains limited.
In conclusion, Serbia’s energy future will likely be a gradual transition: phasing out old coal plants while simultaneously building flexible, renewable-based capacity, supported by storage and digital technologies, to ensure energy security and reduce emissions.
