Why is electricity from solar energy so expensive in Serbia?

While in many countries around the world the price of electricity generated from solar energy is the lowest and therefore the most affordable for consumers, in Serbia, the price of solar-generated electricity is much higher due to the so-called feed-in tariffs which contribute to the higher price.

According to data from the report presented by the International Energy Agency in October, solar technology is consistently cheaper in most countries than the one produced by coal or natural gas power plants, so the electricity produced by solar power plants currently has the lowest price.

As a result, solar energy will take precedence over the next 10 years as it will fulfil one-third of the world’s energy requirements.

According to the Agency’s research, the expected average growth rate of the share of solar plants in the production of additional electricity will be 13% per year.

Energy expert Goran Radosavljevic says that these estimates are realistic due to a number of factors.

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“The electricity generated by solar panels is already cheaper in many countries than the electricity generated from other sources. There are several reasons for this. The first is that solar system technology is cheaper than others, so it allows for higher productivity and lower electricity prices. In addition, countries around the world offer a number of advantages when it comes to producing electricity from solar power, which further reduces costs. Producers of electricity from solar panels do not have to pay taxes, which, for example, plants that produce phosphorus have to. As a result, the production of electricity from solar panels is the most profitable and it currently has the lowest market price,” explains Radosavljevic.

However, this figure means little to consumers in Serbia because at the moment, the electricity generated from solar energy is more expensive than the one generated from conventional energy resources due to the feed-in tariff (which is s a policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers) which leads to higher than market prices for producers of electricity from renewable resources, including solar.

This practically means that the Serbian power industry pays more for electricity from producers of renewable energy sources, in accordance with state’s decrees, so that they can offset the funds invested and continue developing in the market.

(Nova, 25.10.2020)

https://nova.rs/vesti/biznis/srbija-mimo-sveta-najjeftinija-struja-kod-nas-je-najskuplja/

 

 

This post is also available in: Italiano

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