Serbia’s transmission operator EMS has signed grid-connection agreements covering around 2 GW of battery energy storage. EMS said roughly 11 GW of wind and solar capacity remains in the transmission connection process. The development points to a larger share of Serbia’s previously identified storage pipeline moving into a more concrete grid-access phase.
Negative prices and renewable surpluses support storage economics
EPS trading executive Davor Pupovac said the Serbian utility bought substantial volumes of electricity at negative prices during April and May. He linked the purchases to periods when expanding renewable output creates generation volumes exceeding immediate demand. In such conditions, batteries can absorb electricity when prices are extremely low or negative and discharge later when market conditions tighten. This allows storage to capture the difference between surplus and scarcity hours.
CBAM-linked shifts change trading patterns across the region
Pupovac said CBAM-related changes and regional electricity surpluses are affecting liquidity and reducing some traditional cross-market arbitrage opportunities. Serbia is adding solar and wind rapidly, while neighbouring Hungary, Romania, Bulgaria and Greece are also expanding renewables. As renewable production becomes increasingly synchronised, cheap electricity can appear across multiple markets at the same time. In that setting, shifting electricity across borders may generate less value than shifting it between hours.
Batteries for time shifting and balancing services
Pupovac said cross-border transmission remains important, while time arbitrage becomes increasingly valuable alongside geographic arbitrage. Batteries can also provide balancing services and support renewable developers facing curtailment or weak capture prices during high-output periods. EMS’s roughly 2 GW figure under connection agreements does not indicate that all capacity will reach operation. Financing, equipment procurement, market-access rules and final investment decisions will still determine how much storage is built.
Serbia spent the first phase of its renewable transition adding generation. The next phase will increasingly concern what happens when too much electricity arrives at the same time.