Serbian authorities have launched the country’s first renewable energy auction, with 50 MW of solar power and 400 MW of wind power. Projects are supported with 15-year separation agreements.
Serbia has reserved 50 MW for solar energy and 400 MW for wind power in the initial renewable energy auctions. The projects receive support with a 15-year separation agreement. In future auctions, a ceiling price of €105 ($113.56)/MWh has been set for wind farms over 3 MW and €90/MWh for solar projects over 500 kW. The state-owned electricity company Elektroprivreda Srbije (EPS) will be the exclusive supplier of these projects. The last date for submitting offers is 14 August 2023.
This auction is the first phase of a three-year plan that aims to distribute rewards for a total of 1,000 MW of wind power generation capacity and 300 MW of solar energy.
“It is estimated that with the successful implementation of the auctions, the Serbian electric power company will earn more than 3 million euros per year, taking into account the relevant market prices,” Serbian Minister of Mines and Energy Dubravka Đedović said in a statement.
The winners of the tender must comply with the recently introduced equalization liability contract model, which requires an additional payment to EPS for production deviations. According to the government, the additional payments are based on the next day’s market prices.
The auctions receive financial support from the European Bank for Reconstruction and Development (EBRD). In March, the EBRD approved a EUR 300 million financing package for EPS to accelerate the development of wind and solar energy and help achieve Serbia’s goal of phasing out coal by 2050. The bank has been helping Serbia in renewable energy auctions since 2020.
Serbia aims to install 8.3 GW of solar power by 2024, as outlined in the government’s draft plan. According to the International Renewable Energy Agency (IRENA), Serbia’s installed solar power capacity was 137 MW at the end of 2022.