Norwegian Estimate: Investments in Energy of up to EUR 33 Billion Necessary in Next 15-20 Years

According to the proposition of Norwegian experts, Serbia will need EUR 16-17 to 32-33 billion for investments in the energy sector in the next 15-20 years, stated the president of Serbia, Aleksandar Vucic.

At the regional conference “Possibilities of Investments in Renewable Energy Sources in the Western Balkans”, organized by the embassies of Norway in Belgrade and Sarajevo, he said that Serbia was experiencing structural problems.

– It’s not just about the diversification of gas and oil supply, but also the fact that there’s an old-fashioned approach, old technologies in thermal power plants, and there’s nothing new in hydro potentials either. We are still not in the position to increase the percentage of renewable energy sources in the total consumption – Vucic said.

He pointed out that it meant that “reforms will need to be carried out and habits will need to change and that is why Serbia has started begging the British and the Norwegians”.

– Our Norwegian friends have been of great help and have a short-term, medium-term and long-term proposition for the energy sector with priorities. We will have to do so as soon as possible, otherwise, we will face a disaster. We will have to invest EUR 16-17 to 32-33 billion in the energy sector in the next 10-20 years – Vucic said.

He added that there was no sector more important than energy, except possibly healthcare and that, in the region, between Serbia, North Macedonia, Montenegro, Albania and Bosnia and Herzegovina, the transfer systems need to be better connecter, gas interconnectors need to be built and the oil pipelines need to be connected.

He pointed out that, in such times, it would be difficult to keep public finances under control.

– We have prepared the budget for 2023 with the International Monetary Fund and a deficit of 3.3-3-4% of the gross domestic product (GDP) is projected, which is relatively good, but nearly 45% of it goes for expenditures for the supply with energy sources – Vucic said.

He added that EUR 2.5 million would be spent on the import of electricity that day “which shows that we are ‘bleeding’, because it’s not a small sum, but a lot of money when calculated on the monthly level, and it will be even worse in the winter”.

– We will have to change the structure of the energy sector, which will get more renewable sources, but thermal and hydro potentials need to be improved – Vucic said.

He emphasized that, in the future, energy prices could not serve as a social category for politicians to flatter people, while destroying medium and small enterprises.

Predsedništvo Republike Srbije

Ambasada Kraljevine Norveške u Beogradu

Ambasada Kraljevine Norveške u BiH Sarajevo

President of Serbia

Embassy of Norway in Belgrade

Embassy of Norway in Sarajevo

Aleksandar Vucic

conference Possibilities of Investments in Renewable Energy Sources in the Western Balkans

investments in energy