Cadez: Energy Market Crisis Requires Economy to Switch to RES

The energy crisis, further boosted by the war in Ukraine and the previous events in the energy market in the world, will seriously contribute to a global recession, the growth of the price of energy sources, especially electrical energy, and production of the global level, which will then also have an impact on the local economy, stated Marko Cadez, the president of the Chamber of Commerce of Serbia (CCIS), at the “Business Trends” conference in Belgrade.

Cadez says that there is a range of moves that companies could make facing the problem of high energy prices and adds that one of those solutions is a quicker switch to renewable energy sources through the use of solar panels and heating pumps, the CCIS announced.

– There are estimates that, due to the energy crisis, particularly pertaining to gas, which balances the production of electricity in most EU states, for example, in Germany, the current crisis will seriously contribute to the recession and a drop in production. It all certainly has an impact on us as well, since that is the market that we export to the most – Cadez said at the panel “Better Cost Control, More Regulated Market and Higher Efficiency”, in a conversation with Nenad Savic, the founder and the director of the company Nova Commodities, which supplies electrical energy and does the cross-border trade of it.

The prognoses of experts in Europe say that, in the next nine years, the market price of electrical energy could move within the range of 90 to 130 euros per megawatt-hour, said Nenad Savic in response to Cadez’s question about what companies could expect regarding the electricity price trends in the next period.

He reminded that the market price of electrical energy at stock exchanges started growing last year in April and May and that it hadn’t stopped since then. He says that the European Commission has the mechanisms for lowering the price of electrical energy, but that, due to a quicker process of decarbonization in the EU, the switching to RES and the reduction of the dependence on the Russian gas, it has decided not to do so for the time being.

– We have entered a new era, a new reality. The prices we had before Covid are a thing of the past and will not return to that level – Savic believes.

He reminds that EPS, in its agreements with the purchasers in the commercial market, has offered a price for the economy of 75 euros per megawatt-hour until June 30, 2022, in an attempt to protect the industry and notes that it’s a non-economic price, because the value of “that same product”, at the time when the decision was made, the price was 310 euros in the market.

Privredna komora Srbije

Nova Commodities Beograd

Elektroprivreda Srbije ad Beograd

Chamber of Commerce of Serbia

CCIS

Nova Commodities

Marko Čadež

Nenad Savić

renewable energy sources

electrical energy

electricity

prices

trade