Financial function of renewable energy sources in Serbia

Abstract

The potential of Serbia in renewable energy is important, especially when it comes to solar, wind and water power. Investments in renewable energy sources require large investments, so small and heavily indebted countries can not finance themselves. Production, transmission and use of energy from renewable sources in Serbia are largely determined by financial investments and incentives from the government, foreign investors, or mixed sources. Developing countries are condemned to economic dependence on the developed countries, but the financial effects of investments in the development of renewable energy sources are not always clearly defined. Exploitation of renewable energy sources initially requires huge financial resources and the advantages of these energy sources are only visible after a certain period of time. Renewable energy sources are often local or national in nature, so their funding can contribute to the development of the market, industry, job creation, and thus to economic growth and development. The paper points out the significance of the expected reduction in the cost of energy production from renewable sources, thanks to government support, legislation, scientific and technological development, which make it possible to overcome the forthcoming energy crisis in Serbia.