Energy security is absolutely one of the key challenges of modern times, and CBAM tax is no longer an issue of the future for Elektroprivreda Srbije (EPS). CO₂ tax is paid for each megawatt-hour that is exported, regardless the producer of that electricity and whether it comes from thermal capacities or renewable energy sources - said David Žarković, EPS Assistant General Manager for Power Portfolio Management, at the RES Serbia 2026 conference.
At the panel named "CBAM - Challenges and Opportunities," Žarković explained that all independent producers from RES are in the EPS balance group.
- Starting from the vision and desire to promote development of renewable energy sources, EPS provides them with balancing under very favorable market conditions. However, when we want to export this energy, there is an additional CO₂ cost that we cannot transfer to producers. If we fully incorporated it into the export price, that price would not be competitive - said Žarković.
He said that the problem is that the way this tax is currently calculated does not reflect the actual production mix of Serbia. He recalled that in 2023, as much as 45 percent of electricity generation in Serbia did not come from coal.
Žarković pointed out that an additional burden is the local CO₂ tax which as of this year is about four euros per ton. This represents a cost of about EUR 100 million per year for the energy sector, and this tax is not deducted from the existing CBAM tax.
- The solution must both be conducive to the further development of RES in Serbia and, of course, provide sustainable operation to EPS focused on new investments. The balance group, or in this case EPS, should be allowed to have a tax-free export of electricity per year to the quantity equal to the total annual production from renewable sources. If this is not implemented, the consequence will be a significant increase in the operating costs of power companies - Žarković pointed out.
He emphasized that EPS expects a revision of the rules related to the CBAM tax, and that such a system currently represents a significant stumbling block for the financial and therefore investment sustainability of power companies.
