Serbia

After a long-time in isolation, Serbia is now moving towards a more integrated and liberalized energy sector. With electricity heavily subsidized, consumers use primarily electricity for heat, and this is causing serious challenges to Serbia's recovery. Electricity use in Serbia has increased since 1990 despite a decrease in GDP by nearly half. Power outages are frequent and are posing economic and political programs for Serbia's new government.

Heavy subsidies on electricity prices (about 80%) and district heat (ranging from about 40%-70%) are encouraging rigorous consumption, while straining the budgets of cities and energy enterprises that must provide the subsidies. This makes it impossible to increase supplies and to properly maintain the systems. Despite the heavy subsidy levels, heating bills consume approximately 33% of the average monthly salary.

To deal with this situation, USAID carried out a large-scale assistance effort designed to demonstrate the potential savings from energy efficiency projects, educate people about the inevitable rise in electricity prices, and show the public what they can do about it. Although prices are rising, energy costs do not have to because people can save energy in their homes, schools and local governments.

In addition to several demonstration projects in schools, hospitals and other buildings, USAID launched a national media campaign to inform the public about what is going on and what to do about it. In 2001, the Alliance managed the media initiative, working to produce several public service announcements (PSAs) and documentaries which were sent to municipal managers around the country. As part of the media campaign, a local marketing firm conducted focus groups and polls in order to refine the main messages of the PSAs so as to maximize their effectiveness.

On the municipal side, the Alliance worked on the following activities:

  • Assisted cities in municipal energy planning (see Baltic Region)
  • Established an energy committee at the national municipal association of Serbia (called the Standing Conference on Towns and Municipalities)
  • Conducted a year-long municipal training course on energy management, project development and financing issues, and district heating reform
  • Conducted Business/Project Development Seminar series on project planning, business development, technology, and industry sectors (hospitals, municipal, residential)
  • Via the MUNEE network, sent approximately 40 municipal and energy officials on study tours to learn what other countries have done on municipal energy efficiency.

For further information, contact: Angela Morin Allen
Email:amorin@ase.org

This Project was funded by the United States Agency for International Development