EPS Preparing for Carbon Fees – Analyses for Decarbonization of Production Portfolio Commissioned

Elektroprivreda Srbije (EPS) has published the tender for analyses for the purpose of investing in the development and decarbonization of the production portfolio of that public enterprise.

– In Serbia, over 55% of the emission of greenhouse gases happens in the processes in the sectors of production of electrical energy, heating and fuel and refineries. Within said sectors, the biggest emitter is the sector for the production of electrical energy – the document reads.

It is also reminded that around 70% of the electrical energy in Serbia is produced at thermal power plants which use local lignite and which operate as part of the PE EPS.

Therefore, the process of energy transition of Serbia on its way to decarbonization will mostly reflect on the operations at the PE EPS, which will be obliged to implement a successive reduction of the participation of local lignite, so the company has to optimize the investments in new and existing production facilities.

The all-encompassing analyses which are the subject of this tender should give the optimal solutions for the use of lignite in the long term, as lignite, as said, is still a strategic resource given that it secures the electrical energy independence of the state, and then also for the production of electrical energy at thermal power plants and the production of electrical energy in the existing HPPs and an increase in the share of renewable energy sources.

The first task entails an analysis of the regional wholesale market of electrical energy and, related to that, the forming of a market model of the power system of Serbia and the countries of Southeast Europe (SEE), so as to arrive at projections of consumption and wholesale prices, the dynamics of withdrawing the production capacities and the commissioning of new ones.

The second task is the selection of future investments and valorizations of the production portfolio of EPS through an analysis of operations in the conditions of restrictions according to the directives from the EU Green Deal.

It is reminded that, in the EU states, the main mechanism that contributes to the realization of the goals of the energy transition/decarbonization is the EU Emission Trading System.

As pointed out, that is why it is especially necessary to prepare an analysis of the impact of the implementation of the Carbon Border Adjustment Mechanism – CBAM on the operations of EPS, an analysis of the impact of the implementation of the EU Emission Trading System on the operations of EPS, as well as the impact of the charging of the carbon fee.

The tender expires on October 3.

B. P.

Elektroprivreda Srbije ad Beograd

EPS

decarbonization

carbon quotas

carbon fees

decarbonization of the production portfolio

production of electricity from lignite

renewable energy sources

analysis