Serbia raises subsidies for renewable energy production in 2021

    Recently, the Serbian government decided to increase the subsidy for Solar Off Grid System renewable energy production in electricity prices from 2021, from the current 0.093 dinars per kilowatt-hour of electricity to 0.437 dinars, a five-fold increase.

    The article said that in 2013, Cyprus introduced renewable energy production subsidies into the electricity price to stimulate the production of renewable energy such as wind power, small hydropower, biomass energy and solar energy. According to estimates, based on the monthly average household electricity consumption of 350 kWh, the cost of ordinary residents will increase from 33 dinars to 153 dinars.

    The article stated that the feed-in tariff model has been abandoned by EU member countries, but it is widely adopted by non-EU countries in the Western Balkans. In order to alleviate the burden on enterprises, Serezeng announced in early 2019 that it would transition from the feed-in tariff model to the auction and franchise model. But since then, the Serbian government has not taken actual action.