Expensive energy projects can be implemented with regional approach and attracting investors from abroad, Kovachevski tells MIA
Belgrade, 17 November 2022 (MIA) – At the regional conference on investment opportunities in renewable energy in the Western Balkans we discussed about a regional approach in dealing with the energy crisis and ensuring energy transformation and energy security for each of the countries, as well as for the region as a whole, Prime Minister Dimitar Kovachevski told MIA after Thursday’s conference in Belgrade.
Kovachevski participated in the conference alongside Serbian President Aleksandar Vučić, Albanian Prime Minister Edi Rama, Montenegrin Prime Minister Dritan Abazović, Chairman of the Council of Ministers of Bosnia and Herzegovina Zoran Tegeltija, and investors from Norway alongside an official of the Norwegian government, MIA’s Belgrade correspondent reports.
“We discussed about a regional approach in dealing with the energy crisis, but also a step further, which is to ensure energy transformation and energy security for each of the countries, as well as for the region as a whole. The energy projects that need to be done, in terms of new gas supply pipelines, new energy plants for the construction of new power plants, whether they are from renewable energy sources or gas power plants, still these are huge projects that a single country cannot finance due to the fiscal limitations that each of them has. However, a regional approach and attracting investors from abroad would make it all much more feasible. We are currently a leader in the region in terms of installing new renewable energy capacities, primarily here referring to photovoltaic plants and wind plants. That's how we will continue. We already have projects that are ready for investment, either within ESM, or as projects with foreign investors. We were able to share this with our colleagues from the region, and it was also interesting for investors from Norway,” said Kovachevski.
As regards Vučić's view that it is necessary to start setting up a regional market of energy sources, so that the countries in the Balkans can help each other, given that they all have different opportunities and capacities in that area, as well as about the possibilities of an agreement between North Macedonia and Serbia over the TE-TO gas plant, Kovachevski said things were moving forward.
“If we look at the region in hindsight, it is very different today than five years ago. First, because all the open issues that existed between the countries, particularly regarding our country, have been resolved with the neighbors. Second, we are amid the biggest energy crisis and it was confirmed during last winter, and in the entire period until today, that issues in terms of energy supply and above all in food supply can be resolved through cooperation with neighboring countries, which all citizens witnessed during the past winter,” Kovachevski said.
He mentioned that two months ago, talks began with Vučić over Serbia having larger quantities of gas, given that it has gas storage facilities that North Macedonia has not had. However, on the territory of North Macedonia there is a cogeneration plant that operates on gas in Skopje, the TE-TO plant, so talks were in the direction of Serbia providing gas at a better price than that on the world stock exchanges, and in return the gas would be used to produce electricity which would later be shared between the two countries, so that they could meet their energy needs.
“The intention is for our industry to receive cheaper electricity than the one it gets from the markets, while Serbia will be able to compensate for its shortages of electricity especially in the southern part of the country. At the moment, the situation in terms of this cooperation is much better, let's say with better expectations than before,” said the Prime Minister.
Kovachevski pointed out that this is the first meeting of its kind and another one is due in March, which will discuss much more details and which companies from the energy sector can also attend.
