REPUBLIC OF SERBIA SECURITY OF SUPPLY STATEMENT Year 2017 Security of Supply Statemet – Republic of Serbia________________________________________________ TABLE OF CONTENTS 1. INTRODUCTION ....................................................................................................................1 1.1. LEGISLATIVE AND REGULATORY FRAMEWORK OF THE ENERGY SECTOR .................................................. 1 1.2. INSTITUTIONAL FRAMEWORK GOVERNING THE ENERGY SECTOR .............................................................. 2 1.3. WORKING GROUP ON SECURITY OF SUPPLY ............................................................................................... 4 1.4. OTHER IMPORTANT ACTS FOR THE FUNCTIONING OF THE ENERGY SECTOR .............................................. 4 1.4.1. Ordinance on Terms of Energy Supply .......................................................................................... 4 1.4.2. Ordinance on Terms of Natural Gas Supply .................................................................................. 5 1.4.3. Regulations of Commodity Reserves .............................................................................................. 6 2. STRUCTURE OF ENERGY SECTOR .........................................................................................7 2.1. CRUDE OIL SECTOR ................................................................................................................................... 7 2.2. NATURAL GAS SECTOR .............................................................................................................................. 8 2.3. COAL SECTOR ............................................................................................................................................ 9 2.4. ENERGY SECTOR ........................................................................................................................................ 9 2.5. THERMAL ENERGY SECTOR ..................................................................................................................... 10 2.6. RENEWABLE ENERGY SECTOR ................................................................................................................. 11 2.7. ENERGY RESOURCES ................................................................................................................................ 11 3. ELECTRICITY ..................................................................................................................... 13 3.1. ELECTRICITY MARKET ............................................................................................................................. 13 3.1.1. Participants in the Electricity Market .......................................................................................... 14 3.1.2. Bilateral Electricity Market ......................................................................................................... 15 3.1.3. Balancing Electricity Market ....................................................................................................... 17 3.1.4. Organized Electricity Market ....................................................................................................... 20 3.2. PRODUCTION, TRANSMISSION AND DISTRIBUTION CAPACITIES ............................................................... 21 3.2.1. Production Capacities .................................................................................................................. 21 3.2.2. Transmission Capacities .............................................................................................................. 23 3.2.3. Distribution Capacities ................................................................................................................ 24 3.3. SCOPE AND QUALITY OF THE PRODUCTION, TRANSMISSION AND DISTRIBUTION SYSTEMS MAINTENANCE ......................................................................................................................................... 25 3.3.1. Production Maintenance .............................................................................................................. 25 3.3.2. Transmission System Maintenance .............................................................................................. 27 3.3.3. Distribution System Maintenance ................................................................................................ 28 3.4. SECURITY ASSESSMENT OF TRANSMISSION AND DISTRIBUTION SYSTEM OPERATION ............................. 29 3.4.1. Security Assessment of Transmission System Operation .............................................................. 29 3.4.2. Security of Distribution System Operation ................................................................................... 30 3.5. MECHANISMS OF CONGESTION MANAGEMENT IN TRANSMISSION AND DISTRIBUTION SYSTEMS ............ 31 3.5.1. Mechanisms of Congestion Management in Transmission Systems ............................................. 31 Security of Supply Statemet – Republic of Serbia________________________________________________ 3.5.2. Mechanisms for Congestion Management in Distribution Systems .............................................. 32 3.6. MEASURES FOR COVERING PEAK DEMAND AND INSUFFICIENT AMOUNT OF PROVIDED ELECTRICITY ............................................................................................................................................ 33 3.7. REALIZATION OF PLANNED CONSTRUCTION OF NEW GENERATION, TRANSMISSION AND DISTRIBUTION FACILITIES ........................................................................................................................ 34 3.7.1. Generation .................................................................................................................................... 34 3.7.2. Transmission................................................................................................................................. 34 3.7.3. Distribution .................................................................................................................................. 36 3.8. PLANNED ELECTRICITY CONSUMPTION AND PRODUCTION / METHOD OF PROVIDING THE MISSING QUANTITIES IN THE NEXT FIVE-YEARS PERIOD ......................................................................... 38 3.8.1. Realized Consumption and Production ........................................................................................ 38 3.8.2. Method of Providing the Missing Quantities in the next Five-Years Period ................................ 39 3.9. SECURITY SUPPLY FORECAST FOR THE NEXT FOVE TO FIFTEEN YEARS ................................................... 39 3.10. INVESTMENTS IN CAPACITY FOR THE PRODUCTION OF ELECTRICITY ....................................................... 42 3.11. DEVELOPMENT PLAN AND INVESTMENTS IN TRANSMISSION SYSTEM FOR THE NEXT THREE TO FIFTEEN YEARS ........................................................................................................................................ 45 3.12. INVESTMENT AND DEVELOPMENT PLAN OF THE DISTRIBUTION SYSTEM FOR THE NEXT THREE TO FIVE YEARS ......................................................................................................................................... 46 3.13. REGIONAL, NATIONAL AND EUROPEAN GOALS OF SUSTAINABLE DEVELOPMENT, INCLUDING INTERNATIONAL PROJECTS ....................................................................................................................... 47 4. NATURAL GAS ................................................................................................................... 50 4.1. NATURAL GAS MARKET ........................................................................................................................... 51 4.2. TRANSPORT SYSTEM ................................................................................................................................ 58 4.3. DISTRIBUTION SYSTEM ............................................................................................................................. 60 4.4. STORAGE OF NATURAL GAS ..................................................................................................................... 61 4.5. SECURITY OF SUPPLY ............................................................................................................................... 61 4.5.1. Planned Production and Consumption of Natural Gas and Security of Supply the Missing Amount for the Period 2020–2030 .................................................................................. 61 4.5.2. Incentives for New Investment in Exploration, Production, Transportation and Storage of Natural Gas .............................................................................................................................. 62 4.5.3. Plans for the Construction of Energy Facilities to Ensure the Security of Natural Gas Supply ........................................................................................................................................... 63 5. CRUDE OIL AND PETROLEUM PRODUCTS .......................................................................... 70 5.1. PRODUCTION, IMPORT, EXPORT AN CONSUMPTION OF CRUDE OIL AND PETROLEUM PRODUCTS ............. 70 5.1.1. Crude Oil ...................................................................................................................................... 70 5.1.2. Derivatives of Crude Oil ..............................................................................................................