15 May Interview with Dušan Živković, General Manager, Electric Power Industry of Serbia (EPS)
What is your analysis of Serbia’s electricity sector, including its key strengths and weaknesses, recent developments and main challenges?
The energy crisis has imposed energy security as a priority, but also the topic of energy sovereignty. Geopolitical events have threatened the energy sovereignty and security of the European Union. Our region, maximally focused on coal, is also faced with the situation of having to ensure energy security, striving for energy sovereignty and at the same time be profitable enough to achieve its goals. These circumstances have also imposed new rules of the game for energy companies.
Elektroprivreda Srbije, like the others, must adapt to this in order to survive, ensure profit, but also the energy security of the country. Diversification of sources is necessary. The recipe is a little gas, a little coal, a little sun and wind, a little hydrogen, nuclear power plants and to have a sufficient amount of energy in this century, as we had in the last.
Green transition and decarbonization of the energy sector are topics on which Elektroprivreda Srbije works hard. It is especially important for us that the energy transition ensures energy security, with planned optimization of electricity generation. This means a gradual reduction in the share of coal in the energy mix and an increase in the share of renewable energy, but it requires plans and strategies at the state level, financial resources and clear views of each scenario.
EPS is ready to participate in regional and international projects that contribute to energy security and increase the share of RES in the energy mix, and especially in projects that are the backbone of the development of the wider electricity market in the region and Europe.
What is EPS’ historical role and contribution in Serbia’s electricity market and what are its major achievements over the years?
EPS is the largest energy company in Serbia and in the region, as well as the most important player in the electricity market. The capacity of our power plants is more than 7,400 megawatts and a third of our production portfolio is made up of renewable sources. We are historically linked to Renewable Energy Solutions (RES), as the first hydropower plants in Serbia were Pod Gradom and Vučje, more than a century old. The hydroelectric power plant (HPP) Pod gradom on Djetinja, in Užice, was commissioned in 1900 and was the first power plant in Serbia, operating according to Tesla’s principles of polyphase currents. The first transmission of electricity in Serbia was made from a small hydropower plant Vučje to Leskovac. The power plant began to operate in 1903, for the needs of the famous weaving mills of the ‘Serbian Manchester’ and lighting of Leskovac and it still generates energy today.
EPS can boast that for decades it has been a reliable link in supplying citizens and businesses with electricity, in all circumstances that the country has faced. The greatest strength of our company are our professional and hardworking employees, who have confirmed for decades that EPS is the engine for development of the Serbian economy.
What major infrastructure projects are in the pipeline and how will these projects improve energy efficiency, stability and regional connectivity?
At the end of last year, we successfully completed the construction of a new thermal unit B3 in Kostolac, with 350 megawatts of power, which significantly contributes to energy stability and security. This unit was designed according to the strictest European standards and applicable technical regulations. The project included modern technologies and standards in the field of engineering, all currently applicable environmental protection elements, even some that are still expected. We have completed the construction of a desulfurization plant in our largest thermal power plant — TENT A — and the construction of the same type of facility is underway in TENT B. Upon completion of this project, all large thermal sector capacities of EPS will meet the strict environmental standards not only of Serbia, but also of the European Union.
For the future of EPS development, as well as the entire electricity sector, the key is construction of a pumped-storage hydroelectric power plant (PSHPP), with power of about 650 megawatts, for which documentation is being prepared. This is especially important because it is expected that the share of variable renewable energy sources from perhaps the most important resource the planet has — the sun — will further increase. It is certain that new capacities will be needed to enable balancing and stability of the system. By construction of the PSHPP Bistrica, Serbia would gain flexible capacity at the heart of the electricity system not only of Serbia, but of the entire region. The essential importance and additional quality that Bistrica has in transition is an important factor of EPS’ portfolio change to the use of green energy and balancing.
We have also launched the implementation of a project to build large-capacity self-balancing solar power plants, with a total installed capacity of 1 gigawatt with battery systems for storing electricity with a total installed capacity of 200 megawatts.
What are EPS’ latest digitization efforts such as smart metering, the Bill Overview program and other technological advancements?
EPS must change, it must be faster in the market, in terms of decision-making and process management. We are determined that digitalization is the path down which EPS needs to go and we have done a lot, especially in the market and customer relations segment. We are focused on paperless business and we have offered our users an electronic bill, as well as the application and portal to view and pay their bill with just two clicks. Now we have about 720,000 users.
The development of IT technologies in the company is key to the future and further development. We are focused on improving the digitalization of business processes and services and especially on measures to increase system and data security.
The generation sector is also moving towards digitalization and it is necessary to follow business and management trends. Circular economy and artificial intelligence will be the topics that, in addition to decarbonization, will mark the time ahead and will have the greatest impact on the future of the energy sector.
In which ways is the company advancing Serbia’s green energy and decarbonization goals and growing renewable energy capacity in the country?
Investing in the overhaul of existing capacity and construction of new capacities that use renewable energy sources is the backbone of our strategic development and in this we have the maximum support of the government of Serbia and the Ministry of Mining and Energy. EPS is strategically oriented towards projects that use RES and towards investments in environmental protection projects so that all power plants meet EU standards and norms. We are determined to achieve the goal of our energy sector getting 45% of its energy from renewable sources by 2030.
We are completing the construction of our first Wind Farm in Kostolac with 66 megawatts and a 10 megawatt solar power plant. We are developing projects for using renewable energy sources on depleted dumping sites.
Through revitalization projects, we will ensure that 80% of our hydro capacities operate safely and securely in the next 30-35 years. In parallel, through the revitalization of thermal power plants in the next two years, we will ensure that 75% of our thermal capacities will be able to produce electricity in the next 10-15 years, until new revitalizations are carried out.
How do you see Serbia’s energy future and EPS’s role in European integration, new policies and global trends?
EPS recognizes its role and position in the development of new projects. We are not an isolated island, but harmonization with EU norms and directives imposes a more intensive use of renewable energy sources. That is why we focus on EPS revitalization of existing and construction of new plants that generate green energy, as well as investments in improving environmental protection.
Our project PSHPP Bistrica will be of great importance for the region, as it will enable an additional receiving of about 1,500 megawatts from wind and solar energy. We are working together with Elektroprivreda in Republika Srpska on a project to build hydropower plants on the upper course of Drina River. A special regional potential has the possibility of construction PSHPP Djerdap 3.
What is your personal vision as CEO of EPS? Where would you like to take EPS in the next 3-5 years?
According to my vision, in the next five years EPS will be a technologically modernized company that has led and successfully implemented decarbonization, carried out environmental protection projects, significantly increased the share of RES and is a profitable and sustainable company with a modern corporate organization and culture. This is the goal of our transformation plan that we started last year.