Serbia’s transmission system operator EMS has signed grid-connection agreements covering approximately 2 GW of battery energy storage. The agreements indicate progress from early-stage announcements toward contracted access to the transmission network. At the same time, around 11 GW of wind and solar capacity remains in the transmission connection process.
EMS said the signed connection agreements cover battery energy storage projects as the country’s storage market moves toward more concrete grid access. The development reflects a shift in how battery projects are advancing within Serbia’s electricity infrastructure pipeline. It also aligns with growing commercial visibility for storage as renewable generation expands.
EPS trading executive Davor Pupovac said the Serbian utility bought substantial electricity volumes at negative prices during April and May. He linked this to periods when renewable output increases supply beyond immediate demand. In such conditions, storage systems can charge during very low or negative price periods and discharge when demand rises and prices recover.
This price pattern supports time-based arbitrage for battery operators, based on differences between surplus and scarcity hours. Pupovac also said changes related to CBAM and regional electricity surpluses are affecting market liquidity. He added that some traditional cross-border arbitrage opportunities have been reduced.
Regional surpluses shift arbitrage toward time flexibility
Pupovac described a broader change in how electricity is traded across Southeast Europe as more countries expand renewables. Serbia is adding solar and wind capacity, while Hungary, Romania, Bulgaria, and Greece are also increasing renewable generation. As generation profiles become more similar across markets, low or negative price periods can occur simultaneously in multiple countries.
In that setting, moving electricity from one country to another can become less valuable when surpluses appear region-wide. Instead, shifting electricity across hours can offer a different value opportunity for market participants. Cross-border transmission capacity remains relevant, but time arbitrage is gaining importance alongside geographic arbitrage.
Batteries can respond quickly to market condition changes, which supports their role in time-shifting electricity. Storage can also provide balancing services and help renewable generators manage curtailment periods and weaker capture prices when solar and wind output is high.
Connection agreements do not guarantee commissioning of 2 GW
The roughly 2 GW covered by EMS connection agreements should not be treated as storage capacity guaranteed to reach operation. Developers still need to secure financing, procure equipment, satisfy market-access requirements, and reach final investment decisions. Some projects may be delayed, resized, or cancelled.
Even so, the connection agreements represent a milestone for Serbia’s battery sector beyond preliminary pipeline announcements. They point to a clearer route toward grid access and eventual construction for projects covered by the agreements. The battery developments are occurring alongside a larger renewable pipeline still progressing through transmission connection procedures.
With around 11 GW of wind and solar capacity remaining in the transmission connection process, flexibility needs are expected to rise as intermittent generation enters the system. Serbia’s earlier renewable phase focused mainly on adding generation capacity, while the next phase depends more on managing large volumes arriving at the same time. Battery storage is positioned within that shift as infrastructure that can shift electricity across time and support system balancing.