Serbia's electricity production has primarily relied on fossil fuels, making up more than two-thirds of the total electricity. Low-carbon or clean energy sources make up nearly one-third of the electricity mix in Serbia, most of which comes from hydropower. Gas remains a smaller player, while net imports cover a minor fraction of the total mix. The dominance of fossil fuels over cleaner energy sources raises concerns about environmental sustainability and climate impact. There is an urgent need to transition to more low-carbon sources to reduce environmental pollution and contribute to mitigating climate change.
Renewable energy market in Serbia
Total installed capacity
- Wind energy: 607 megawatts (MW) from 11 operational wind farms
- Solar energy: over 100 MW of small-scale photovoltaic (PV) power generation, plus 89 MW from prosumers
- Hybrid: 3 hybrid power plants (wind and solar) with 552 MW of total capacity
- Biogas: 39 biogas power plants, with 39 MW of total capacity
- Biomass: 2.4 MW of total installed biomass capacity
Key opportunities for Canadian renewable energy companies in Serbia
- Strong wind and solar potential
- New renewable energy auctions (feed‑in premiums)
- Supportive policy direction and European Union (EU) alignment
- High demand for private capital
- Growing carbon market and green investment incentives
- Regional energy hub potential
Notable challenges for Canadian renewable energy companies in Serbia
- Grid capacity constraints
- Regulatory uncertainty and policy shifts
- Slow and complex permitting
- Market dominance of state utility (EPS)
- Local opposition and environmental scrutiny
- Financing risks and currency exposure
Industry highlights
Power generation mix in 2025:
- 61.8% coal
- 24.4% hydro
- 6.1% gas
- 4.0% wind
- 0.8% biofuels
- 0.4% solar
- 2.4% net imports
30% of power generation is low-carbon energy
8227 MW of total net installed capacity for power plants
3852.4 MW of total renewable energy capacity (including hydro)
Serbian business landscape
Serbia is strategically located in Southeast Europe, with land connections to 8 countries. Serbia has a population of around 7 million. The country’s GDP is roughly CAD 112 billion, demonstrating moderate economic growth.
Serbia is historically reliant on coal, which continues to make up most of the national energy mix. There are significant government-backed investments in renewable sources, particularly wind and solar power. A mature and growing power exchange supports effective regional energy trading. Strong legal frameworks also support renewable energy development and integration into the European energy market.
Serbia plans to achieve 45% renewable energy sources (RES) for electricity production by 2030, and 73% by 2040. The country also aims to expand wind and solar power with a target of 3.5 GW by 2030, and 10.97 GW by 2040.
Summary
Serbia is one of the most attractive emerging renewable markets in the Balkans. Success in this market requires:
- strong local partnerships
- careful regulatory monitoring
- early grid‑connection planning
- environmental, social, and governance (ESG)‑aligned project design
Foreign companies that enter early (especially in wind, solar, storage, and grid services) are well‑positioned for long term success.
Contact us
For more information on the renewable energy market in Serbia, please contact bgradtd@international.gc.ca.