Serbia’s transmission system operator EMS said it has signed grid-connection agreements covering around 2 GW of battery energy storage. EMS also reported that roughly 11 GW of wind and solar capacity remains in the transmission connection process.
The agreements indicate that part of Serbia’s previously identified battery pipeline has moved from preliminary development into a more advanced grid-access phase. The shift is occurring as the commercial case for storage strengthens, according to the statements cited in the report.
Negative-price purchases and storage value
EPS trading executive Davor Pupovac said the Serbian utility bought substantial volumes of electricity at negative prices during April and May. He linked this to periods when expanding renewable output produces generation beyond immediate demand.
Batteries can be used to absorb electricity when prices are extremely low or negative and then discharge later when market conditions tighten. This approach monetises the difference between surplus hours and scarcity hours, based on how prices evolve over time.
CBAM, regional surpluses, and changes in arbitrage
Pupovac also said CBAM-related changes and regional electricity surpluses are affecting liquidity for conventional traders. He added that these factors reduce some traditional cross-market arbitrage opportunities.
The reported market conditions point to storage being used alongside geographic trading as time-based opportunities become more relevant. The role of batteries is also linked to providing balancing services and supporting renewable developers facing curtailment or weak capture prices during high-output periods.
Renewables build-out across the region and connection milestones
Serbia is adding solar and wind, 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 between countries may generate less value than shifting supply between hours. Cross-border transmission remains important, but time arbitrage is described as increasingly valuable alongside geographic arbitrage.
The roughly 2 GW covered by connection agreements should not be read as 2 GW of batteries guaranteed to reach operation. Financing, equipment procurement, market-access rules and final investment decisions will still determine how much capacity is built.
The connection milestone is presented as evidence that Serbia’s storage market is moving closer to execution. The country’s first phase of its renewable transition focused on adding generation, while the next phase is expected to involve managing periods when too much electricity arrives simultaneously.
