Energy Market Actors
Electricity Market
Structure of Power Sector
Power sector in Serbia, upon deployment of deregulatory processes, operates via two public enterprises:
- "Electric Power Industry of Serbia" (EPS) – This public eneterprice is the only electricity provider in Serbia
- ''Elektromreza Srbije'' (EMS) – Public enterprice - Serbian Transmission System and Market Operator, also the only transmission operator .
''Elektromreza Srbije'' (EMS) - Serbian Transmission System and Market Operator.
Founded by the Decision of the Government of the Republic of Serbia, EMS operates as an independent public enterprise since July 1, 2005.
Main activities:
- Electric energy transmission
- Transmission system control
- Organization of electric energy market
"Electric Power Industry of Serbia" (EPS)
Public Enterprise ”Electric power industry of Serbia” was established by Decision of the Government of Serbia which entered into force on 1 July 2005.
Main activities:
- Electric power generation
- Electric power distribution and distribution system management
- Electric power trade
- Coal production
- Processing and transport
- Steam and hot water production in combined heating processes
- Other
The total (net) capacity of EPS's electric power generating facilities is 8,355 MW:
- In lignite-fired thermal power plants the installed capacity is 5,171 MW
- In hydro power plants the installed capacity is 2,831 MW
- In fuel oil-fired and natural gas-fired combined heat and power plants the installed capacity is 353 MW
The Electric Power Industry also operates three power plants having a net capacity of 461 MW which are not in the ownership thereof.
Oil and Gas Market
Oil and gas industry of Serbia, in its broadest meaning, is comprised of state owned public enterprises, private ownership enterprises and international companies.
Industry has been split into two sectors: oil and gas.
Activities: research and production of oil, gas, geothermal energy, import, transportation and refining of raw oil and derivatives, derivatives’ distribution and sale, as well as the production and sale of lubricants and cooling products.
Oil
Public enterprises: NIS a.d., Transnafta, FAM d.o.o. Krusevac, Rafinerija nafte Beograd d.o.o.
Private and international: Lukoil-Beopetrol a.d., EKO Yu, OMV, Nafta a.d., Petrobart-Avia, Trizon Group, MOL, Oktanoil, Chemol, Bell Chemical and others.
Research and production of oil, gas and geothermal energy is strictly carried out within the public enterprise NIS - Naftagas, on of the four branches of Naftna Industrija Srbije a.d., Novi Sad (Oil Industry of Serbia).
Production of the oil derivatives: NIS – Refinery Pancevo and NIS – Refinery Novi Sad. Cumulative capacity of both refineries is total 7,3 millions tons of primary processing P/A with corresponding secondary capacities. Existing complementary and compatible production structure builds complete technological complex.
In addition, there is an extensive and developed sale network throughout Serbia. It includes the wholesale and retail sale of derivatives, motor oils lubricants and gas.
Oil transportation runs via pipeline –Janaf – Omisalj, Croatia to Pancevo and Novi Sad refineries. Alternatively oil and derivative transport is done by river tankers via rivers Danube and Sava.
Gas
Natural Gas Production
Natural gas distribution in Serbia dates as far back as 1952, since the first gas field was discovered in Velika Greda. 1963, a gas pipeline MG-01 was put into operation for the purpose of fertilizer company in Pancevo. Since domestic production has been insufficient, connection to Russian gas pipeline (via Hungary) proceeded. Since than, import is the main source to meet the demand. Due to insufficient research and new drills, domestic production fell to 260 m3 (data for 2006 – source Serbian Chamber of Commerce).
Transport, Distribution, System Management and Sale
The import of natural gas during last three years has been almost tripled, i.e. from 803 million m3 in 1995 to almost 2,5 billions m3 in 2005. (Source Serbian Chamber of Commerce).
Main gas pipe line capacity is 6,1 billions m3 P/A with maximum working pressure 50 bars.
Total length is 2135 km.
Average age of the pipeline is 25 years.
The network comprises approximately 180.000 households and 1.000 industrial consumers.
In favour to intensify and advance gasification in Serbia and harmonize with EU legislation, numerous documents and contracts have been signed, based on EU Directive (2003/55/EC), and related to regulations for gas market, defining rules in this energy sector.
- Energy Development Strategy up to 2015
- National Action Plan for Gasification in Serbia
- Nacionalni Akcioni Plan za Gasifikaciju Republike Srbije
- Action Plan 2006 - 2008
- Signed Memo on Agreement for connecting gas transportation systems – between Serbia and Bulgaria
- Contact on ENERGY Union „JIE” (October 2005)
- Serbian Energy Agency has been founded
- "Srbijagas" – enterprise established under the re-structuring of Oil Industry of Serbia.
- Tree-party co-operation agreement signed between: Ministry of Mining and Energy, NIS-Energogas (before "Srbijagas" was established) and local self-governments.
Investments
Construction of southern joint of transportation system – from town of Nis to Dimitrovgrad. This 60 million dollar value project, aims to improve the supply safety and quality, to cut transit costs and provide systematic gasification in Central Serbia.
Underground storage of natural gas. This project would aim more balanced import during the year and cut down import costs.
Coal Market
Low-calorie coals - lignite, which are mined at the Kolubara and Kostolac sites, provide 65% of the electric power in Serbia. It is significant that the available data shows that one Kolubara excavation site alone- Field D, provides 32% of the electric power in Serbia.
Production of coal, used as basic fuel in thermal power plants of the Electric Power Industry of Serbia, takes place at open-pit mines of the mining basins of Kolubara and Kostolac.
The coal from open-pit mines is lignite, having an average calorific value of 7.500kJ/kg.
Open-pit mines at the Kolubara basins, which produce around 75 percent of lignite in Serbia supply: TPP Kolubara, TPP Nikola Tesla and TPP Morava.
In the Kostolac basin, supplying TPP Kostolac, an amount of 25 percent of lignite in Serbia is produced.
In 2004, an amount of 33.6 mill.tons, was produced in the two basins, which exceeded the balance by 1 percent:
- In Economic Association for Coal Production Processing and Transport MB "Kolubara" - 27,1 mill. tons
- In Economic Association Thermal Power Plants and Mines "Kostolac" – 6, 5 mill. tons
The total production of overburden in both basins amounted to 90.461.413 m3
Since July 1, 1999, the Electric Power Industry of Serbia does not manage its mines in Kosovo and Metohija.
[ Electric power industry of Serbia ]
Heat Production – District Heating
There are 42 city heating plants in Serbia with heat energy capacity of 5,500 MW. However, Serbia does not have sufficient energy production or funds for their procurement. The main characteristics of Serbia’s heating plants are low operating readiness due to insufficient maintenance and outdated equipment, financial exhaustion and an inability to perform urgent intervention on sources and grids. Heating is poor and there is a need for additional capacity.
