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 battery projects moving from earlier stages toward a more concrete grid-access phase.
The shift is occurring as the commercial case for storage strengthens. 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 renewable generation exceeds immediate demand as output expands.
Negative-price periods and storage value
Batteries can take in electricity when prices are extremely low or negative and then discharge later when market conditions tighten. This allows storage operators to monetise the difference between surplus and scarcity hours. Pupovac’s comments describe how expanding renewable output is already creating those price conditions.
The market environment is also affecting conventional electricity trading. Pupovac said CBAM-related changes and regional electricity surpluses are influencing liquidity and reducing some traditional cross-market arbitrage opportunities. In this context, storage is increasingly positioned as part of how the market responds to changing trading conditions.
Regional renewables, cross-border flows, and time arbitrage
Serbia is adding solar and wind capacity rapidly, while neighbouring countries including Hungary, Romania, Bulgaria and Greece are also expanding renewables. As renewable production becomes more synchronised across the region, cheap electricity can appear in multiple markets at the same time. Pupovac said that under such conditions, shifting electricity between countries may generate less value than shifting it across hours.
Cross-border transmission remains relevant, but time-based arbitrage is becoming more valuable alongside geographic arbitrage. Batteries are described as suitable for this model because they can move electricity across time rather than only across borders. They can also provide balancing services and support renewable developers facing curtailment or weak capture prices during high-output periods.
Connection agreements versus final build-out
The roughly 2 GW covered by connection agreements should not be treated as an indication that all capacity will reach operation. Financing, equipment procurement, market-access rules and final investment decisions will still determine how much storage is built. The connection milestone indicates that Serbia’s storage pipeline is moving closer to execution.
Serbia’s renewable transition has so far included an initial phase focused on adding generation capacity. The next phase will increasingly involve managing situations when too much electricity arrives at the same time.