Is the Crisis Jeopardizing Production of Energy from Renewable Sources in Serbia?

(Illustration) After the Government of Serbia adopted the decision to suspend the payments of incentives for the production of electricity from renewable sources and in highly efficient cogeneration, the Biogas Serbia association announced that Elektroprivreda Srbije had sent an offer to biogas power plant operators to accept the drastic reduction of the price of delivered electricity, citing the state of emergency through the implementation of the “force majeure” institute, under threat of being disconnected from the power network.

As eKapija learns, the power plants which produce energy from wind have accepted the offer made by EPS, although they stand to collect loan installments from international financial institutions and banks which are not subject to the moratorium of the National Bank of Serbia.

Biogas, however, says that “force majeure” by itself is not and cannot be the reason for not meeting the obligations under the contract, but that it needs to directly render the party to the agreement incapable of meeting the obligations in order to apply.

– In this case, EPS is not incapable of meeting its obligation under the Contract on Buyout of Electricity due to the state of emergency, which means that it is obliged to meet its obligation under the contract. In a situation in which all companies in Serbia would cite “force majeure” as the reason for no longer meeting their contracted obligations, an economic collapse would occur – the press release says.

Biogas Serbia also says that all its members are aware of the state of emergency and the decision by EPS to allow consumers not to pay the bills in the next three months.

– All our members offered EPS not to have to pay for the delivered electricity during the state of emergency and to then meet its obligations at the full price after the state of emergency ends, but EPS declined – it is said.

Biogas also says that they want to appeal to EPS to change this decision through this statement.

Elektroprivreda Srbije ad Beograd

Udruženje Biogas Srbija

Elektroprivreda Srbije

Biogas Serbia Association

renewable energy sources

force majeure

payment of incentives for production of electricity from renewable sources

highly efficient cogeneration

CHP

preferred producers of electricity

agreement on buyout of electricity

producers of electricity

coronavirus