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Article

2 Mar 2020

Author:
Pippa Gallop, CEE Bankwatch Network

Serbia ends unfair subsidies advantage for environmentally destructive small hydropower plants

"Serbia finally moves to halt unfair advantage for small hydropower plants", 22 January 2020

Serbia’s Ministry of Mining and Energy last week finally announced that its Regulation governing incentive measures for renewable energy and cogeneration is no longer in force. This, for now, puts an end to small hydropower’s unfair subsidies advantage over wind and solar in the country and offers an opportunity for a longer term halt to incentives for environmentally destructive hydropower plants...Serbia has announced plans to move towards a more up-to-date incentives system based on auctions and premiums – a move which would help to keep the costs of renewables support down to a manageable level. These plans have been supported by civil society as long as they incentivise only new forms of energy – solar and wind – not mature and environmentally-damaging technologies like hydropower. They also need to include criteria for making sure that project siting is environmentally and socially acceptable.