Djedovic Handanovic, EU's Giaufret discuss reforms, investments in energy sector

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic met with Deputy Managing Director for Western Europe at the European External Action Service Emanuele Giaufret in Belgrade on Tuesday to discuss planned investments and implementation of reforms in the energy sector.

The minister noted that significant results in implementation of Reform Agenda steps had been achieved, especially when it comes to transfer and implementation of an Energy Integration Package, which, at the same time, is the key condition for access to the joint EU electricity market.

"Serbia is the first and, for now, the only country from our region that has met the conditions for access to the joint EU electricity market, and we are confident we are one of the first countries that will become a part of the joint market. We are also working with commitment on gas sector reforms - which are an important part of the reform agenda - as demonstrated by the establishment of a new enterprise, Gasna infrastruktura, which has taken charge of management of the gas sector, by the adoption of network rules for allocation of gas transport capacities, as well as by delivering on the commitments that are in the competence of the Transportgas Srbija enterprise," Djedovic Handanovic said.

"Infrastructure construction and diversification are crucial for long-term security of gas supplies. Priorities in the gas sector include construction of gas interconnectors with Romania and North Macedonia, which are important for diversification of supply sources and routes, construction of a new trunk gas pipeline from Nis to Horgos, as well as expansion of natural gas supply storage facilities. Also, we plan to sign an agreement to build a gas-fired power plant with Azerbaijan," Djedovic Handanovic said.

Speaking about sanctions on Serbia's Russian-majority owned gas company NIS, she said an agreement reached by Gazprom neft and Hungary's MOL on a sale of the Russian stake in NIS paved the way for a sustainable solution for NIS and for the US sanctions to be lifted.

Speaking about nuclear power, Djedovic Handanovic said a preliminary technical study on peaceful use of nuclear power had been prepared in collaboration with France's EDF and that, among other aspects, it included an analysis of the state and the preparedness of the electric power grid for a nuclear power plant and examined the available technologies and potential partners.

"A new organisational unit has been formed within the Ministry of Mining and Energy to deal with assessing the justifiability of a nuclear programme, and an inter-departmental expert working group is being established, and they will be working together on preparatory activities that will precede the making of a well-informed decision regarding peaceful use of nuclear energy," the minister said.

Djedovic Handanovic and Giaufret also discussed energy projects for which funding from the Western Balkans Investment Framework has been approved, as well as projects with which Serbia could potentially bid for EU grants.

Giaufret said there were major shifts as well as challenges in Serbia's energy sector, and noted the significance the EU attached to energy sector reforms and the pace of their implementation.

The meeting was also attended by the head of the EU Delegation to Serbia Andreas von Beckerath.