Electric vehicle regulation and law in Serbia

Serbia continues to lack the specific legislation that would establish a progressive legal framework for EVs and appropriate incentive schemes and policies aimed at fostering EV market share in the country. But there are encouraging signs on the horizon in the form of two key developments in Serbia’s national energy policy: adoption of the Energy Sector Development Strategy of the Republic of Serbia for the period by 2025 with projections by 2030 (the “Energy Sector Development Strategy” aligned with another important piece of legislation in renewables sector – the National Renewable Energy Action Plan of the Republic of Serbia); and its implementing Decree Establishing the Program for the Implementation of the Energy Sector Development Strategy of the Republic of Serbia for the period by 2025 with projections by 2030 (“the Decree”).

The Serbian Statistical Office does not regularly collect and publish data on the total number of registered EVs. However, according to unofficial data, a total of 128 EVs were registered in Serbia (including buses and trolleybuses) as of August 2017. We expect more significant increases in the number of EVs – especially PLDVs – on both the local market and Serbian roads following the adoption of specific legislation, incentive schemes and policies, and progress in overcoming the current problems and main challenges to the further deployment of EVs in Serbia.

There are no specific regulations regarding EVs to date in Serbia. However, the Energy Sector Development Strategy and the Decree – setting out the key principles, goals and implementation measures for developing the energy sector – are significant as they directly address the EVs sector.

For example, an incentive scheme to promote the use of EVs in Serbia may be expected in the near future, given that the Decree envisages “considering possibilities of introduction of incentives for the use of electric vehicles” as one of the measures for implementation of the Energy Sector Development Strategy.

The Ministry of Construction, Transport and Infrastructure has established an expert workgroup to draft a study proposing an optimal incentives model – by 2019 at the latest – which may then serve as the basis for specific EV-related regulations and incentive schemes.

CMS Serbia is promoting initiatives for improving the EV legal framework by engaging with expert organisations. For example, the CMS Belgrade Energy Team is working with the Foreign Investments Council and the local branch of AmCham (The American Chamber of Commerce). The CMS Belgrade Energy Team has prepared a position paper outlining steps to be implemented by the Serbian government in order to increase both the popularity and availability of EVs in the Serbian automotive market. Hopefully, the results of this and other related initiatives will include the introduction of specific tax exemptions and customs reliefs on both the import of and the income from EVs, and on related infrastructure, along with specific further incentives to foster market developments.

Serbia at present does not have specific measures to promote the use of EVs.

However, the initiatives and strategies mentioned above, along with incentive schemes proposals based on best international practices provided by the relevant stakeholders, point to the adoption of the first measures in the near future – hopefully by the end of 2018.

Considering the lack of specific regulations and incentive schemes, currently only the Ministry of Construction, Transport and Infrastructure is engaged to some extent in the deployment of EVs in Serbia. The ministry established and is supervising the expert workgroup looking into EV incentives, mentioned above.

Professional associations are promoting efforts to improve the environment for EVs and are aiming to formalise cooperation with official governmental bodies soon.

Some of the key challenges are:

• the lack of specific legislation and appropriate incentive schemes, including tax and customs measures.
• underdeveloped network of charging points.
• difficulties concerning the import of EVs and obtaining the homologation certificate from the competent authority in Serbia.

We expect most of the outstanding issues – including the practical hurdles in the registration procedure and the current lack of incentive mechanics – to be eliminated through: the adoption of acts and by-laws to set up the EVs regulatory framework in line with the EU acquis; and by allowing for effective incentives and benefits to stakeholders willing to invest in the market. If properly implemented, this approach would provide for the initial development of the local EV market.

Evidence that the market may be set to develop is available on the Tesla Inc. official website, which says that four Tesla Superchargers are to be installed in Serbia soon – two in Belgrade and one each in Jalovik Izvor and Požega.