The use of hydropower potential in the Republic of Serbia is dependent on the demand for electricity and implies meeting the basic and special needs for energy, certainty of delivery to the consumers, attaining lower prices, aligning the development of the energy sector and economic and societal development and rational production, transmission and distribution of electrical energy. By establishing a specific public-private partnership model (PPP) the water sector can use the renewable potential of the amounts and quality of water and manage its water resources to gain indirect, induced and direct supply that may impact the private energy efficiency and that meets ever growing demand of the energy sector, that is their supply in the energy market. Today's conditions under which the water sector is functioning and the attitude towards energy demands need to be changed by establishing a relationship between the public and the private domains in accordance with the principles and requirements that apply on PPP and under conditions that are based on the national and EU legislation.
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