During July, August and September, Serbia imported electricity worth approximately $261 million (28 billion dinars), according to the Republic Institute of Statistics. The Electric Power Company of Serbia (EPS) was the primary importer, compelled to do so due to high consumption driven by extreme heat, low water levels affecting hydroelectric production, maintenance of thermal power plants, and long-standing underinvestment in new production capacities, reminiscent of the energy crisis in December 2021.
Despite the anticipated losses from these imports, Minister of Mining and Energy Dubravka Đedović Handanović announced that EPS recorded a profit of about 30 billion dinars in the first nine months of the year, nearly equivalent to the summer’s import costs and similar to its profit in the first half of the year, which was 32.8 billion dinars. However, this reflects a substantial drop from last year’s profit of 87.4 billion dinars, indicating that EPS’s profitability has nearly halved.
EPS’s recent financial history has shown volatility, with a loss of €630 million in 2022, a profit of nearly €1 billion the following year, and a profit of approximately €255 million in the first nine months of this year. This inconsistency can be attributed to both internal inefficiencies and external factors such as unfavorable hydrological conditions and global energy market disruptions.
Nenad Gujaničić, a broker at Momentum Securities, emphasized the importance of focusing on cash flows rather than just profit margins. He noted that while EPS has managed to maintain a positive cash flow of around 25 billion dinars this year, it must prioritize capital investments, which have lagged behind planned figures. In 2023, only 37% of the planned investment for the first half of the year was realized, which could hinder long-term stability.
EPS’s ability to remain competitive is further complicated by the need for substantial investments in modernization and expansion. Upcoming projects include the new Block B3 at the Kostolac thermal power plant, set to become operational soon, and the anticipated construction of wind and solar energy facilities aimed at enhancing EPS’s production capacity.
Minister Đedović Handanović noted that EPS has been exporting electricity for nearly two months, indicating a recovery from the challenges faced over the summer. Data reveals fluctuations in electricity trade, with notable imports and exports throughout the summer months.
As EPS navigates these complexities, the government aims to support its transition to sustainable energy solutions while managing the expectations of its social functions and financial viability.
