Lifting the Moratorium on Nuclear Power Plants in the Republic of Serbia
Author: Attorney-at-law Vojinović B. Milan, Law Firm “VUK Tax Attorneys”
Date: 17th June 2025
The Law on Amendments to the Energy Law (“Official Gazette of RS”, No. 94/2024), which entered into force on 6th December 2024, introduced novelties into the energy sector of the Republic of Serbia, aiming to achieve higher energy security and further development and implementation of the renewable energy sources at the Serbian market. One of the novelties is termination of the Law on Prohibiting Construction of Nuclear Powerplants, whereby moratorium on construction of the nuclear powerplants is lifted in the Republic of Serbia, that was introduced at the time of SFR Yugoslavia, after nuclear disaster in Chernobyl, USSR, that occurred in 1986.
By latest amendments, the whole new chapter is introduced into the Energy Law, entitled “Nuclear Energy”. Said novelties, that now regulate nuclear energy, also define Development Program for the Peacetime Application of Nuclear Energy, that should be implemented in three (3) phases. This Development Program includes conducting of appropriate expert analysis, research and studies which should be performed by the Serbian Ministry of Mining and Energy, aimed to conducting third and final phase of this Program, i.e. performance of all necessary activities related to design, construction and exploitation of nuclear facility for production of power i.e. nuclear powerplant. Namely, the phase 3 of the Program should be final phase of the development, where building and activation of the first nuclear powerplant in the Republic of Serbia is expected. Until this newsletter, the Government of the Republic of Serbia did not yet adopt the Development Program for the Peacetime Application of Nuclear Energy.
As stated in the Development Strategy for Energy Sector of the Republic of Serbia until 2040 with Projections until 2050, that was adopted on 27th November 2024 by the Serbian National Assembly, acceptance and usage of the nuclear energy in the Republic of Serbia could bring the following benefits: (i) fulfillment of existing and future goals of integrated climate and energy policy; (ii) reduction of emissions of all pollutants and greenhouse gases from the power production sector; (iii) diversification of primary energy supply routes; (iv) replacement of obsolete production units that use coal in the power system; (v) reliable and stable energy supply and acceptable prices of the power for consumers; (vi) economic incentive for regional development; and (vii) development of domestic industry and new specializations and technologies in the entire supply chain of components and products.
In scientific theory, nuclear energy is regarded as green energy because it does not produce harmful gases, considering that from the point of view of the emission of greenhouse gases and local pollutants, it represents clean energy source. However, the lifting of the moratorium on construction of nuclear powerplants, has not yet led to amendments to the Law on Usage of Renewable Energy Sources, and thus nuclear power plants are not on the list of powerplants that use renewable energy sources such as hydro powerplants, solar powerplants, wind powerplants, etc.
It is undoubtful that said lifting of the moratorium, and setting-up regulatory framework for construction of the first nuclear powerplant in the Republic of Serbia, represents significant novelty and prospect at the energy market, thereby establishing preconditions for investments in this area. However, development of nuclear energy and announcement on building of the nuclear powerplant represents challenge for competent state bodies as well as other participants at the power market, from system operators to end-consumers. Also, efficient development and implementation of the nuclear energy require adequate experts and capacities, that were significantly reduced in our country due to said moratorium which lasted more than 35 years. Also, it should be noted that energy sector in the Republic of Serbia is still adapting to novelties that arise from intense introduction of the renewable energy sources at the market, and therefore numerous challenges in this sector still exist, for which we are yet to see practical effects.
Our Law Firm will timely and closely monitor upcoming activities in this area, in order to assist, through its considerable experience and expert analysis, its clients in eliminating all ambiguities and successfully conducting investments.