electricity market

Serbian Renewable PPAs Do Not Automatically Reduce CBAM Exposure

Serbian industrial companies are increasingly using renewable power purchase agreements (PPAs) to manage energy costs, improve supply security and strengthen export competitiveness. However, a domestic renewable PPA does not by itself create a route around the EU’s Carbon Border Adjustment Mechanism (CBAM). A Serbian factory purchasing electricity from a Serbian wind or solar plant is consuming electricity domestically, even if it is owned by an EU company or exports most of its production to the EU. The transaction is therefore…