Serbia’s transmission 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 developments point to a larger share of Serbia’s previously identified storage pipeline moving into a more concrete grid-access phase.
Storage pipeline advances alongside negative-price periods
The shift is occurring as the commercial case for battery storage strengthens, according to statements cited by EPS. 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 expanding renewable output creating periods when generation exceeds immediate demand. In that setting, batteries can be used to absorb electricity when prices are extremely low or negative and discharge it later when prices tighten.
Pupovac also described how market conditions are changing for conventional electricity trading. He said CBAM-related changes and regional electricity surpluses are affecting liquidity and reducing some traditional cross-market arbitrage opportunities. With solar and wind being added rapidly in Serbia and neighbouring markets, cheap electricity can appear across multiple countries at the same time. In such conditions, shifting electricity between countries may generate less value than shifting it across different hours.
Time arbitrage and balancing services for renewables
The role of batteries is described as extending beyond cross-border trading. Batteries can support balancing services and help renewable developers during periods of curtailment or weak capture prices when output is high. Pupovac’s comments frame storage as part of the response to changes in how arbitrage opportunities develop across time rather than only geography. Cross-border transmission remains important, but time arbitrage is described as increasingly valuable alongside geographic arbitrage.
EMS’s figure for signed connection agreements should not be read as a guarantee that all capacity will reach operation. Financing, equipment procurement, market-access rules and final investment decisions will determine how much battery capacity is built. However, the connection milestone indicates that Serbia’s storage market is moving closer to execution. Serbia’s renewable transition has already included an initial phase focused on adding generation.
The next phase is expected to focus on what happens when too much electricity arrives at the same time, as renewable output increases.