May 26, 2025
by in News

Battery storage market in SEE emerging, Western Balkans lagging behind with positive prospects

The deployment of battery energy storage systems (BESS) across Southeast Europe is progressing at an uneven pace. State subsidies and financing mechanisms have enabled the rapid implementation of BESS solutions in Greece, Romania and Bulgaria, while markets in the Western Balkans are lagging behind. However, the outlook remains positive, as experiences from neighboring markets and best practices from other parts of the European Union can help overcome initial challenges and streamline the deployment process. This was highlighted by participants of the panel dedicated to BESS at the Belgrade Energy Forum.

Among the technologies required for the energy transition, battery energy storage systems (BESS) stand out as a key factor for integrating electricity from intermittent renewable sources – wind and solar power – into the grid. There are few such facilities in Southeastern Europe and the segment is yet to even be fully regulated in the narrower Western Balkans region. The panelists at a session called Energy storage system market in SEE: trends and forecasts, at Belgrade Energy Forum (BEF 2025), outlined the trends in the budding market.

There are more and more cases of low and negative hourly prices in the wholesale electricity market in the region, providing a clear business case for BESS investments. In addition, the grid is often overloaded on weekends and holidays when solar and wind power production is high, given the weak demand.

Managing Director of Go2Power Consulting Goran Vukojević, who moderated the discussion, warned that negative prices may jeopardize system stability as well, if operators of power plants disconnect them from the grid at the same time, to avoid costs.

He highlighted the preparations in Serbia’s transmission system operator Elektromreža Srbije (EMS) for auctions for ancillary services and praised the company for transparency in regulating the competitive process. The other option for battery operators is to participate in the open market.

Managing Director of Go2Power Consulting Goran Vukojević moderated the panel discussion

Region seen with 9 GW of BESS operating power in 2030

Ioanna Barouni from Aurora Energy Research said a total of 40 GW of solar and wind power is expected to be online at the end of 2025 in the SEE region, comprising 12 countries, including Hungary. In 2030, the level is expected to reach 70 GW, which is expected to be doubled to 145 GW by mid-century. As for BESS, projections stand at 9 GW in 2030 and 25 GW in 2050.

Barouni: We miss flexibility and ancillary services for transmission and distribution system operators

The countries of the region are retiring power plants that use fossil fuels, a firm capacity, in Barouni’s words, while adding renewables. “It’s not very easy to predict how the generation profile is going to be during the day, so we miss flexibility and we miss ancillary services for TSOs and DSOs,” she said.

The gap between power prices for midday and the evening is gradually increasing. Barouni explained that batteries “create some artificial demand and absorb these low prices.” At peak demand and with less renewables, a battery can replace expensive fossil fuels, lowering the price.

Ioanna Barouni from Aurora Energy Research (pictured left) and Head of Specialized Lending at UniCredit Bank Serbia Svetlana Cerović

Serbia preparing auctions for ancillary services

Division Manager of transmission system operator (TSO) EMS Nikola Tošić acknowledged that Serbia is preparing auctions for ancillary services. He revealed that there would probably be one auction for 70% of the needed reserve in the first year. The next rounds would be more frequent, shifting toward daily auctions for balancing capacity.

In the verification process, EMS’s System Operation Department will first test the battery, Tošić added. State-owned power utility Elektroprivreda Srbije (EPS) already provides ancillary services to the TSO, so it won’t require tests, he asserted.

Serbian law defines ancillary services the same as European Union does

EMS drafted the new grid code, and it will publish the draft balancing market code for public discussion soon, according to Tošić. He said the domestic law defines ancillary services in the same way as the EU defines them in its legislation. One part is balancing services: frequency containment reserve (FCR, primary), automatic frequency restoration reserve (aFRR, secondary) and manual frequency restoration reserve (mFRR, tertiary). The other part are non-frequency services – energy.

“We think that it would be good to incentivize the periods of the year or periods of day when the needed amount of reserve is more attractive or more in demand,” Tošić said.

Market Division Manager of EMS Nikola Tošić

Fortis Energy moving ahead with battery investments regardless of government support schemes

Fortis Energy’s Chief Executive Officer for Eastern Europe Nikola Oklobdžija considers the lack of regulation to be the biggest challenge for developers. An investor can currently only focus on charging the batteries when the prices are low and sell when they are high, he underscored.

The Turkey-based company develops photovoltaic, wind power and BESS projects in the region. The first bigger investments in renewable electricity plants with energy storage are the ones that will break the ice, in Oklobdžija’s opinion.

“Of course, it helps if you have a CfD contract, so the banks will look at it more favorably,” he stated. Oklobdžija added that companies need to be able to present revenue to the lenders and what the fees are for renting the capacity or providing different services.

Bankability depends on state support and PPA contracts, cash flow models and insurance

In the meantime, Fortis is examining the experiences in Bulgaria and Greece, which have already held auctions for standalone batteries. Financing a project is easier with a CfD – contract for difference, but the company is determined to push ahead anyway, Oklobdžija stressed.

In North Macedonia it commissioned a solar power plant in Oslomej and recently contracted a BESS to be added to the facility. Oklobdžija said it wasn’t a requirement but that Fortis opted for energy storage because of market pressure with prices and occasional curtailments, like during Easter last month.

The introduction of ancillary services would facilitate the development for standalone battery systems, he explained.

Fortis Energy’s CEO for Eastern Europe Nikola Oklobdžija

Cerović: First there will be more projects for colocated BESS units than for standalone facilities

Head of Specialized Lending at UniCredit Bank Serbia Svetlana Cerović highlighted the intensive activity in Germany and Italy, for instance, but also in neighboring Romania. UniCredit is present in those markets and is analyzing the development of the battery storage market, she pointed out, arguing that the best practices in the EU are the best way for building and financing battery storage.

Cerović said there would first be more projects in the region for BESS colocated with renewable energy plants than standalone units.

She suggested that the proposed investments that include storage should be better pondered at the next renewable energy auction in Serbia. It is in the country’s interest to enable providing flexibility and to support the projects, she said.

There may be a rationale for subsidizing prosumers to add storage in Serbia, Cerović said. Turning to small-scale projects, she expressed the belief that power purchase agreements (PPAs) are “convenient” for them. She is recommending dedicating a certain capacity for the category at the next auction in the country.

The first projects in Serbia, conditioned by energy storage requirements for a grid connection, are in the process of negotiating financing, according to Cerović.

Fire protection is especially significant for insurers

Renewable Energy Insurance Broker (REIB) has insured some 4 GWh of energy storage capacity in Bulgaria and just as much elsewhere in the world, Business Development Manager Dimitar Dimitrov said. Developers should contact insurance companies when the design is done, as well as for cargo insurance, he suggested and added it is particularly important for projects that get subsidies.

“We’re not only insurance brokers, but we’re also investors, which helps us understand a bit more about the clients’ needs, and what we can definitely do more in cases of coverage. Understanding clients’ needs helps us also prevent risks that could occur during certain stages,” Dimitrov stated.

Most insurers prefer at least a six-meter distance between containers or rows of three to four containers holding batteries, he said. It is the most important factor in fire protection, in Dimitrov’s opinion. When the distance is shorter than three meters, a firewall is required for insurance, he explained.

REIB’s Business Development Manager Dimitar Dimitrov

The next segment is construction insurance. For insurance companies, it is not a higher risk profile, Dimitrov asserted. Next, he recommended operational risk insurance including coverage for business disruption, and insurance against cyberattacks. In such events, the grid connection can be damaged, the company’s representative pointed out. “Insurance policies are definitely bankable,” he added.

Bulgaria has completed its tenders for state support to BESS combined with renewable energy plants, and for standalone units. But even before subsidies, batteries have been delivered and facilities are under construction, Dimitrov stressed. Many photovoltaic projects in Bulgaria have emerged in the past few months and most of them include BESS, he said.

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May 13, 2025
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Significant step for citizen energy in BiH – Republic of Srpska enables establishment of first renewable energy communities in region

The recent adoption of the rulebook on renewable energy communities in the Republic of Srpska is a big step in enabling citizens, local authorities, and businesspeople in Bosnia and Herzegovina to join forces and produce electricity for their own needs. It was a key step in introducing citizen energy. The concept is a great opportunity for the Balkans, because it can provide many benefits like lowering bills for consumers, and a sustainable energy transition, according to Damir Miljević, a member of the Regional Center for Sustainable Energy Transition (RESET) from BiH.

The new rulebook on renewable energy communities in the Republic of Srpska, one of the two entities making up Bosnia and Herzegovina, defines the activities of renewable energy communities (REC).

Energy transition consultant Damir Miljević explained to Balkan Green Energy News that REC refers to the production of electricity from renewables, while citizen energy communities (CEC) include all types of energy. The rulebook adopted by the Republic of Srpska, in his words, is the first in the region. It is focused on enabling the production of electricity for self-consumption (prosumers) primarily from renewable energy sources such as solar, wind, and hydro energy.

Energy communities are an opportunity for citizens and businesspeople lacking suitable roofs for photovoltaics

He says the rulebook finally created the conditions at the local level – where the energy transition is supposed to be conducted in the first place – for citizens, local authorities, and businesspeople to join forces and produce electricity by installing a facility together. They can use some of the produced electricity for their own needs and inject the rest into the grid.

Citizens and small entrepreneurs who don’t have suitable roofs for solar power plants and municipal authorities with many roofs at their disposal as well as their own land can jointly finance and use such facilities. They will benefit both on the individual and collective level, Miljević pointed out. Without the communities framework, it wouldn’t be possible, in his opinion.

“In addition, conditions are created through RES communities to cede a part of the energy that the community’s facility generates, if the members of the community agree, to vulnerable categories of the population, contributing to the fight against energy poverty that way,” said Miljević, who is among the speakers at the upcoming Belgrade Energy Forum 2025 (BEF 2025).

Miljević: Elektroprivreda Republike Srpske needs to do its part

The rulebook’s entry into force enabled citizens, local firms and local communities to establish renewable energy communities, Miljević said and added that the only serious remaining obstacle is the refusal of government-owned power utility Elektroprivreda Republike Srpske (ERS) to sign new supply contracts.

Prosumers in the entity can’t fully exercise their rights, despite an order from the Regulatory Commission for Energy of the Republic of Srpska, as they haven’t yet received the new supply contracts from ERS, he pointed out.

Citizen energy is a great opportunity for Balkan states

Damir Miljević (photo: Balkan Green Energy News)

Miljević stressed that rulebooks are among the steps in introducing citizen energy. Miljević noted that the other parts of BiH haven’t established regulatory frameworks. The Brčko District has no bylaws, while the Federation of BiH has adopted the rules for renewable energy communities, but hasn’t simplified its rules for connecting prosumers and the communities to the grid.

Production onsite for consumption should become priority in energy policies and for decarbonization efforts in the Western Balkans

In Miljević’s opinion, the resistance is enormous and partly caused by the lack of recognition of the importance and role of citizen energy in countries such as the Balkans.

In contrast to developed countries – for instance, household consumption in the European Union has a 25% share in total final electricity consumption – in BiH and Serbia it is 42%, and in Montenegro it amounts to around 50%, he noted.

It means the concept of producing for consumption onsite should be a priority in energy policy and for decarbonization efforts in the Western Balkans, Miljević stressed. It implies putting solar panels on roofs on a significant scale, which is the essence of citizen energy, he added.

Citizen energy isn’t a priority in domestic and international policies implemented in the region

In addition to reducing electricity bills for customers, the concept contributes to reducing distribution and transmission losses and required investments in new grid capacities and new large power plants, and improves the security of supply and energy independence of a country, according to Miljević.

Citizen energy, in his words, is the only solution for a safe and sustainable energy transition and decarbonization of domestic power consumption, but unfortunately it isn’t a priority in domestic and international policies implemented in the region.

The lobbying effect of investors in the market shouldn’t be underestimated either, nor the fear and resistance within the politics and state-owned power utilities to the decentralization, democratization, and demonopolization of power generation that citizen energy brings, Miljević concluded.

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May 7, 2025
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Self-consumption capacity set to break 1 GW in Greece

Renewable energy projects for self-consumption are expected to reach 1 GW this year in Greece.

According to the Green Tank, at the end of March 2025, self-consumption capacity amounted to 937.6 MW, of which the overwhelming majority (871.9 MW) was in photovoltaics.

It should be noted that last year the government introduced a big change in the segment. The net metering regime was abandoned in favor of net billing, following European guidelines.

Insufficient capacity limit

There were 32,955 self-consumption units in the country at the end of the first quarter. Projects in operation plus remaining applications are estimated at 1,865 MW, which is near the 2 GW ceiling, set by law.

Energy communities, small companies, farmers and individuals have asked for the available capacity to be increased.

They also complain that the Hellenic Distribution Network Operator (HEDNO or DEDDIE) is too slow with connecting them to the grid. The operator has mostly been integrating units in the category of up to 10.8 kW, while ignoring larger projects.

The Renewable Energy Sources Operator and Guarantees of Origin (DAPEEP) began accepting net billing applications for projects of over 10.8 kW only last month. It means it needs to accelerate connections to keep pace.

Renewable energy aggregators have warned that the regulatory framework is unclear when it comes to such projects and their representation in the market.

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April 30, 2025
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Greek farmers turn their backs on government program for photovoltaics

The Greek government’s Photovoltaics in Fields support program has failed to convince farmers so far.

As part of the self-consumption program, farmers are supported for various costs, such as the purchase and installation of panels, inverters, batteries, as well as necessary technical studies.

Applications are accepted for two different project groups, when it comes to connection priority. The first is for installations of up to 10.8 kW and another for projects of 10.8 kW to 50 kW.

Selected investments are eligible for a grant equivalent to 30% or up to EUR 350 per kW. The overall budget is EUR 30 million.

Only 143 photovoltaic systems connected so far

In the year since the program’s launch, the Hellenic Electricity Distribution Network Operator (HEDNO or DEDDIE) received a total of 1,776 applications, of which 1,235 are still under evaluation. The first checks are complete in 794 cases while 377 projects are at the connection terms signing stage.

Only 209 applicants have signed them, while 143 photovoltaic systems have become operational across the country.

Operational restrictions weigh on incentives

The problem for farmers is that HEDNO has enforced operational restrictions in about one third of the accepted units. It means they don’t produce freely, but are subject to curtailments.

The government is mocking farmers

Therefore, profitability drops significantly for investors. It is notable that two out of every three farmers who originally applied didn’t continue the process.

Various agricultural collectives have reacted. Stock farmers of Elassona in Larissa spoke of “a mockery by public bodies, as they promised photovoltaics will solve high energy costs.”

The Ministry of Environment and Energy said it would extend the connection applications deadline by 160 days to include more investors. Furthermore, it would delay the required commencement date for the projects until the end of September.

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April 15, 2025
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Upgrade for prosumers to avoid grid curtailments costs up to EUR 1,000

To use electricity from their photovoltaic systems in periods when grid operators disconnect them to stabilize the system, citizens can install equipment that costs EUR 300 to EUR 1,000. Cyprus passed a bill enabling prosumers to switch to a zero-export mode.

Cyprus, the only non-interconnected European Union member state, is struggling to maintain the stability of its electricity system. Rapid growth of solar power capacity is increasing the episodes of overloads, when grid operators have to curtail their production. At the same time, sometimes sudden weather changes push production to a critically low level, which can also cause outages before oil-fired power plants step in to cover the deficit.

Still, the island country passed amendments last week to protect the right of prosumers to an interrupted power supply for their own needs. On the other hand, implementation isn’t cheap, and for some of them it would not be cost-effective.

Upgrading a PV system with a zero-export mode is not cost-effective if no one is usually home during work hours

Minister of Energy, Commerce and Industry George Papanastasiou said prosumers need to upgrade their photovoltaic systems to be able to keep consuming their electricity during curtailments. A switch for cutting off the solar panels from the grid, and leaving them directly connected to the home, costs some EUR 300, he added. But a prosumer will need to pay EUR 1,000 if the inverter doesn’t support the conversion, the minister explained.

Owners of PV systems need to calculate the curtailment costs and compare them to the investment that enables operating them in a so-called zero-export mode.

If no one is home on weekdays during work hours, when solar panels generate electricity, there are no substantial benefits, unless there is also a battery. And it makes the intervention much more expensive. Conversely, the new option is much more useful for most businesses.

Cyprus is rushing to introduce energy storage capacities and expand the curtailment systems throughout the power system.

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April 15, 2025
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Croatia changing law on renewables – new rules for prosumers, decentralized power production

The Government of Croatia has adopted the amendments to the law on renewable energy sources and high-efficiency cogeneration. They change rules for consumers producing electricity for self-consumption, facilitate the establishment of citizen energy communities and regulate decentralized energy production.

The amendments align the Croatian legislation with the European Union’s Renewable Energy Directive and bring benefits to citizens, entrepreneurs, and investors, the Ministry of Economy said.

One of important innovations is a new scheme for the production of energy for self-consumption. Instead of the current net metering mechanism, the new law introduces net billing. It values more fairly the surplus electricity that prosumers deliver to the grid, according to the ministry.

The grid costs charged to prosumers will be aligned with the actual amount of electricity that they take from the grid

Consumers – citizens and entrepreneurs that produce energy for their own needs, will pay grid costs matching the amount of electricity they actually take from it, enabling a sustainable and fair system for all users, the ministry added.

Existing prosumers will have ten years for the transition to the new scheme.

The bill enables the production of electricity for self-consumption in remote locations, provided that all metering points are registered with the same consumer. The ministry expects the measure to pave the way for greater investments, flexibility, and decentralized energy production.

Waste separation is a condition for granting incentives for waste incineration

The rules for establishing citizen energy communities have been simplified, to further strengthen their role in the energy transition. The amendments stricten the criteria for the sustainability of biofuels and they prohibit incentivizing the incineration of waste not from a system of separate collection.

The upcoming law sets the basis for a plan for the development of electricity infrastructure and storage capacities. It will create the conditions for greater integration of renewable energy sources into the grid, the ministry stressed.

“With this law we are taking an important step forward in the energy transition, ensuring a balance between the interests of citizens, the economy, and the energy system, and creating the foundations for a sustainable development of the Croatian energy sector in the long term,” Minister Ante Šušnjar stated.

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April 15, 2025
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Bulgaria suspends ill-designed solar energy support program

The Ministry of Energy of Bulgaria doesn’t intend to publish the second call for subsidies for households for solar panels with batteries and solar collectors. The program is partly covered by the European Union’s Recovery and Resilience Facility, so now the country risks losing the funds.

The Ministry of Energy of Bulgaria told Kapital that it does not plan to launch a second procedure to support households in purchasing and installing rooftop photovoltaic panels and solar water heaters. The measure was one of the few for citizens in the National Recovery and Resilience Plan (NRRP) rather than businesses or municipalities.

Through the first call, 1,500 households were selected for grants, worth some EUR 20.5 million in total. There is EUR 123 million for the entire scheme, called Support for Renewable Energy for Households. The solar power panel segment includes an option to install batteries as well.

Procedure too complicated

Initially there were fears that there would be more applications than the sum can cover, the article adds. But the procedure turned out to be so complicated that few people actually submitted documentation, the news outlet wrote. So now Bulgaria is about to lose the funds, after the European Commission already blocked the second NRRP tranche late last year.

The Ministry of Energy said it expects all the remaining contracts from the first round to be signed by the end of the month.

The program covers up to 70% of the costs for PV panels and 100% for solar collectors

According to Balin Balinov from Greenpeace, the government is once again demonstrating lack of commitment when it comes to energy poor households.

The program covers up to 70% of the costs for PV panels and 100% for solar collectors. But beneficiaries must buy them on their own and get reimbursed afterward. Notably, people who can afford such devices don’t want to deal with the bureaucracy, the report adds.

Installers struggling with backlogs amid tight deadlines

Moreover, Balinov said, there are hardly any firms available at the moment for installing solar panels, and the deadlines are short. Another issue is the lack of a net metering mechanism for rooftop and balcony photovoltaics. In such a setting, the electricity that beneficiaries generate would be subtracted from their bills.

The draft Law on Energy from Renewable Sources, currently in procedure in the National Assembly of Bulgaria includes the introduction of virtual net metering for prosumers and renewable energy communities. The deadline for approving an application for the installation of a solar power system of up to 20 kW would be just one month, the ministry pointed out.

Moreover, to get a grid connection, prosumers with up to 10.8 kW would only be required to notify the operator.

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April 6, 2025
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Kosovo* to subsidize solar panels for prosumers, solar thermal systems

Kosovo* is using an EU grant for public calls for families and firms to install solar power panels and solar thermal collectors. The subsidies for photovoltaics amount to EUR 250 per kW, or EUR 200 per kW for businesses that set up larger systems. There is a bonus for female-owned enterprises.

The Ministry of Economy of Kosovo* launched a mechanism to support households and micro, small, and medium-sized enterprises in investing in renewable energy. The measures are funded with a EUR 75 million grant from the European Union within its EUR 500 million direct budget aid package for the Western Balkans. It was approved at the height of the energy crisis, to subsidize the energy bills of households and businesses that were at high risk.

The authorities issued a call for photovoltaics for self-consumption for families and micro, small, and medium-sized enterprises. Households can apply for support for solar systems with capacities ranging from 3 kW to 7 kW. They will be subsidized with EUR 250 per kW to become prosumers but only up to EUR 1,750 overall.

Firms that build photovoltaic systems of 10 kW and more are entitled to as much as EUR 6,000 per beneficiary

For micro, small, and medium-sized enterprises, the subsidy will be EUR 250 per kW for capacities ranging from 3 kW to 9 kW. The maximum payment to one beneficiary is EUR 2,000. For capacities of 10 kW and above, future prosumers in the business sector will be subsidized with EUR 200 per kW or up to EUR 6,000 in total.

In cases where businesses are owned by women or are jointly owned by women holding at least 51% of ownership, the government will add EUR 200 to the subsidy.

The deadline for the first phase is May 31 or until all funds are reserved, on a first-come-first-served basis. Applications in the second phase will be accepted until September 30, according to the announcement.

Public call for solar thermal systems for firms expected in one week

The other call, which the ministry expects to be launched in mid-February, is for supporting micro, small, and medium-sized enterprises in investing in solar thermal systems, for water heating.

The share of subsidies is 40% of the investment value or up to EUR 4,000 in total.

Government promises pathways for investments

Kosovo’s Prime Minister Albin Kurti expressed commitment to the energy transition pathway.

“While we are working on projects with large capacities such as the solar auction, we are also pushing forward opportunities for our citizens to develop small-scale energy capacities for consumption and self-consumption. Not only are we reducing the burden on our system, but we are also empowering families and businesses to make sustainable and affordable choices,” he said.

The Law on Renewable Energy Sources has passed the first reading in parliament

It is a favorable time for investments in renewables, Minister of Economy Artane Rizvanolli claimed and highlighted the work on the Law on Renewable Energy Sources. It has passed the first reading in parliament.

The law will make the installation of solar systems more attractive and obligate operators to make it easier for citizens, she added. The energy strategy stipulates that citizens should be in the center with regard to development and benefit from the energy transition, Rizvanolli asserted.

Alessandro Bianciardi from the European Union Office in Kosovo* vowed to continue supporting the government’s initiatives in the sector. They are cooperating on the 2024-2027 agenda to boost the economy of Kosovo* and other Western Balkan countries with grants and subsidies in the energy sector, he stressed.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
April 3, 2025
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Number of prosumers in Romania spikes 79% in one year to 204,000

Prosumers in Romania operated 2.44 GW of capacity at the end of January or 63% more than one year before. Their number soared 79% to 203,984 and it is set to keep growing substantially with more government subsidies underway.

Once again, prosumers confirmed their role as the main pillar of Romania’s energy transition. Growth in the segment is fueled by government support, mostly through funds obtained via the European Union. The number of households, small firms and institutions with the status reached 203,984 by the end of January or a stunning 79% more than 12 months earlier. There were only 303 registered at the end of 2019!

Total capacity jumped 63% on an annual basis, to 2.44 GW, the National Energy Regulatory Authority (ANRE) said. Photovoltaic installations in Romania surged 57% last year, to 4.7 GW, according to the International Renewable Energy Agency (IRENA). It means prosumers still account for more than half.

The Environment Fund Administration (AFM) said it would propose a record EUR 442 million budget for the Casa Verde Fotovoltaice subsidy scheme for prosumers

The number of households was 180,617 two months ago, so roughly 2.4% are currently prosumers. They had 1.13 GW installed.

The remaining ones are legal entities, 23,277 of them, with 1.31 GW.

Most prosumers are in Ilfov county, almost 13,783, followed by Timiș (10,007) and Bihor (8,286).

The Environment Fund Administration (AFM) said it would propose a record EUR 442 million budget for Casa Verde Fotovoltaice. It is a subsidy program for the installation of solar panels, mostly for households. Last year the sum amounted to EUR 402 million.

This year the fund is introducing a scheme worth EUR 80.4 million for battery storage for prosumers. More than 66,000 candidates already applied for a maximum of EUR 6,000 per household for solar panels with storage systems.

President of the APCE association of prosumers and energy communities Dan Pîrșan said EUR 80.4 million for 2025-2026 enables one in four existing prosumers to install batteries and become almost energy independent.

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April 3, 2025
by in News

Energy efficiency, renewables in rural communities in Serbia’s Zlatibor region

Author: Stevan Vujasinović

The population in rural areas in the municipalities of Priboj, Čajetina and Arilje in Serbia have been heavily affected for years with frequent and prolonged interruptions in electricity supply. The interruptions not only disturb everyday life but they also substantially hinder the development of family businesses, especially in tourism and agriculture. However, solutions do exist.

Regional Development Agency Zlatibor almost simultaneously marked World Energy Efficiency Day (March 5) and International Women’s Day (March 8) last week. On the occasion, it organized “energy discussions” with members of women’s associations in rural areas of these municipalities, and the main topics were energy efficiency and renewable energy sources for rural households.

The Zlatibor mountain is one of Serbia’s main tourist and skiing resorts. It partly spans the territories of Priboj, Čajetina and Arilje.

Energy needs and challenges in rural households

“We are without power for several hours at a time in the winter. It is not only discomfort, but a serious problem for heating and preserving food, and especially for us who have guests in rural tourism”, said one of the participants at a discussion in Čajetina. The event gathered the members of the Čajetina Rural Women’s Association and Zlata association.

It became clear from the discussions that there is great interest in installing solar panels, among private households as well as hospitality facilities. However, the access to these technologies is often difficult because of high initial costs and complex procedures for obtaining subsidies, which despite growth in the available volume for the purpose still don’t meet all the existing demand.

High initial expenses and complex procedures for obtaining subsidies make the availability of solar panel installations more difficult

The problem is exacerbated by the fact that many houses in the villages were built illegally, making it more difficult to access energy efficiency subsidies. Besides, the calls are too often only accessible for the beneficiaries that already have initial capital to invest, while the village population often doesn’t know about them.

The Municipality of Čajetina acknowledges the significance of energy efficiency. Last year it issued a public call for cofunding energy efficiency measures in family houses and apartments. However, targeted support for users with the vulnerable energy buyer statuses still hasn’t been provided. Assistance could additionally improve the availability of these measures to the wider population, and in fact the very people who need help the most.

Photo: Members of the Čajetina Rural Women’s Association and Zlata association (Miloš Radojević)

Possibilities for using renewable energy sources

One of the key conclusions of the discussion was that solar panels and heat pumps can significantly improve the situation. Aleksandar Macura from RES Foundation pointed out that the law already enables households to produce their own energy and exchange it with state-owned power utility Elektroprivreda Srbije (EPS). “There are sufficient examples of good practice – around 2,500 households in Serbia already use rooftop power plants and work as buyers-producers,” Macura stated.

Buyers-producers are Serbia’s legal category for prosumers.

Nevertheless, solar panels still require initial investments of several thousand euros, which is an insurmountable obstacle for many. The participants in the discussion proposed solutions such as subsidized loans with delayed payment, in installments, to make the technology more accessible both to retirees and socially disadvantaged persons.

Assembling and energy communities

Another important aspect of the discussion was the possibility of establishing energy communities. In line with European regulations, Serbia is opening the space for joint production and use of solar energy within local communities.

It means any village council could install a solar power plant and distribute the energy among households. It would be especially useful for women running family businesses in agriculture and tourism, as it would provide them with a stable energy source without leaning on an unpredictable power distribution network.

Wood is traditional but inefficient energy source

Wood biomass usage still dominates in many rural households. Some said in Arilje: “Wood is irreplaceable” and “we believe in wood!” However, for people in villages, wood is almost never, even though it is the most accessible, never the most efficient solution for heating. It is partly because of moisture in the solid fuel, and mostly because of inefficient devices.

There are fewer and fewer people in the countryside, so it is getting more difficult and more expensive to timely obtain the wood felling and preparation service, even in one’s own forest. “We have been using wood for decades, but who today can afford quality dried wood? We often heat ourselves using wet wood, which only increases consumption and air pollution,” said one of the participants in an event in Arilje, describing her experience. It was attended by women from two associations: Sibirka and Ariljka.

Photo: Members of associations Sibirka and Ariljke (Miloš Radojević)

How to proceed?

It is clear that rural communities mustn’t be left behind in the energy transition process. Solar panels, energy communities and subsidies for more efficient heating are solutions that can bring concrete changes. However, the key to success lies in a greater accessibility of these solutions for all citizens, regardless of their financial situation or the place of residence.

Energy sustainability in rural communities is not just a matter of comfort but also of the survival and development of local communities. If we want villages to be vital and economically stable, it is necessary to facilitate a stable, sustainable and affordable energy source for them. Through smart investments, better subsidy organization and the development of energy communities it is possible to significantly improve the quality of life in these areas. In addition, additional training in the usage and maintenance of energy-efficient systems can contribute to a greater deployment of the technologies.

The energy discussions with the women of the Zlatibor county was organized within the project Improving the Use of Sustainable Energy in the Zlatibor region, financed by the German Organization for International Cooperation (GIZ) by order of the Government of the Federal Republic of Germany (Federal Ministry for Economic Cooperation and Development – BMZ).

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