New Decree on Conditions of Delivery and Supply of Electrical Energy: NEW OBLIGATIONS OF INVESTORS

14.11.2023.

On October 13, 2023, the new Decree on Conditions of Delivery and Supply of Electrical Energy (“Decree“) adopted by the the Government of the Republic of Serbia entered into force.

Its key novelty is the issue of deposits and bank guarantees of investors/producers.

Deposits

Namely, one of the prerequisites to obtaining the connection study to the transmission or distribution system is the proof of the deposit of funds for the costs of preparing the connection study.

The minimum amount of deposited funds is 50,000.00 euros (of course, in dinar equivalent), for producer’s facilities whose required power is less than or equal to 50 MW, as well as for customer facilities and electricity storage. That amount is increased by:

1) 400 euros, for each MW if the required power of the producer’s facility is over 50 MW, and up to 100 MW;

2) 300 euros, for each MW if the required power of the producer’s facility is over 100 MW, and up to 250 MW; or

3) 200 euros, for each MW if the required power of the producer’s facility is over 250 MW.

Bank guarantees

The applicant for the preparation of the connection study is obliged to submit a bank guarantee in favor of the transmission system operator (EMS), expressed in euros per MW of power at the connection point determined by the connection study, and 25,000 euros per MW of power, in dinar equivalent, within 60 days from the delivery of the connection study.

In the event of a request from an existing user of the transmission system to increase the approved power, the amount of the bank guarantee is related to the power that corresponds to the value of the difference between the newly requested and approved power and the existing approved power.

Intervals and deadlines

The request for the conclusion of the contract is submitted no later than the first day of the month preceding the first month of the interval in which EMS prepares connection studies. EMS will do this every year in two intervals – from March 1 to June 30 and from September 1 to December 31. Hence, the requests should be submitted no later than February 1 and August 1, respectivelly.

There is an exception for strategic partners, whose request is resolved within the deadlines stipulated by the Law on the Use of Renewable Energy Sources.

The first interval for the preparation of the connection study will be slightly different, as well as the deadlines for submitting requests for the conclusion of the contract on the preparation of the connection study.

The transitional and final provisions of the Decree stipulate that the first interval begins on December 20, 2023 and lasts until April 20, 2024, and the deadline for submitting requests is December 1, 2023.

After April 20, 2024, the general interval and deadlines apply.

Coming into force

It is important to note that the Decree applies to the initiated procedures for the conclusion of the contract on the preparation of the connection study, which have not been completed by the date of its entry into force.