Serbia’s transmission system operator EMS has signed grid-connection agreements covering approximately 2 GW of battery energy storage. The agreements mark progress from an announced battery pipeline 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 across the region.
The EMS announcement indicates that a substantial share of Serbia’s previously announced battery projects has moved beyond preliminary planning. The connection agreements are presented as a milestone toward eventual construction, subject to further project steps. Developers still need to secure financing, procure equipment, satisfy market-access requirements and reach final investment decisions.
EPS trading executive Davor Pupovac said the Serbian utility purchased substantial volumes of electricity at negative prices during April and May. He linked this to periods when renewable generation increases supply faster than immediate demand. The same market conditions are described as relevant for battery storage value creation through price-driven operation.
Negative-price periods and shifting arbitrage patterns
Battery systems can charge when electricity prices are very low or negative and discharge when demand rises and prices recover. This enables time arbitrage based on differences between surplus and scarcity hours. Pupovac also said CBAM-related changes and regional surpluses are affecting market liquidity and reducing some traditional cross-border arbitrage opportunities.
Serbia’s renewable build-out is occurring alongside expansions in Hungary, Romania, Bulgaria and Greece. As generation profiles become more similar across these markets, very low or negative prices can occur simultaneously in multiple countries. In such cases, moving electricity between countries may provide less value than shifting volumes between hours.
Cross-border transmission capacity remains important, but time arbitrage is described as gaining weight alongside geographic arbitrage. Batteries are characterized as able to respond quickly to market condition changes. Storage is also referenced as supporting balancing services and helping renewable generators manage curtailment and weaker capture prices during high solar and wind output.
Battery connection agreements alongside a larger renewables pipeline
The roughly 2 GW covered by connection agreements is not equivalent to 2 GW of storage capacity guaranteed to reach operation. Some projects may be delayed, resized or cancelled after the grid-access step. The agreements nonetheless indicate a clearer route from pipeline announcements toward construction-stage development in Serbia’s storage sector.
The battery developments are taking place while around 11 GW of wind and solar capacity remains in the transmission connection process. The need for flexibility is expected to increase as more intermittent generation enters the system. Serbia’s earlier renewable phase focused on adding generation capacity, while the next phase depends on how the system manages large volumes arriving at the same time.
Batteries are positioned within this context as infrastructure that can shift electricity across time and support system balancing. The source material also links storage to turning periods of renewable oversupply into potential market value through operational flexibility rather than additional generation capacity alone.