Photo: Ministry of Mining and Energy/Nenad Kostić
Serbia allocated the entire 424.8 MW quota in its second wind and solar power auction. According to the Ministry of Mining and Energy, the winning bids came from investors from China, the United States, France, and Serbia. They intend to install ten power plants with a total capacity of 645 MW.
The Ministry of Mining and Energy conducted the second round of renewable electricity auctions. Forty-one applications were submitted for market premiums, and 37 were declared valid. Both segments were oversubscribed. Investors in wind submitted bids for 444 MW, and the quota was 300 MW. For solar, they applied for premiums for 260 MW, compared to the available 124.8 MW.
The winners have the right to sign 15-year contracts for difference (CfDs).
Seven bids were declared valid for wind, and five filled the quota. Investors will build wind parks with an overall capacity of 468 MW, and premiums will be awarded for 300 MW, according to the proposed ranking list, published on the ministry’s website, which tracks renewable energy tender procedures. The maximum acceptable bid for wind farms was EUR 79 per MWh, and the investors offered from EUR 53.59 to EUR 68.25, according to the announcement.
These are the winning bidders: Matrix Power, owned by French developer Akuo Energy, Windvision Windfarm A, Windvision Windfarm B, Crni Vrh Power, owned by Chinese companies Shanghai Electric Power & Energy Development Limited and CMC Capital, and Jasikovo, owned by Serbian citizens.
The crowd was much bigger for the solar segment. Five projects won the right to market premiums. A total of 30 applications were valid. The quota was 124.8 MW, and the selected investors are set to install photovoltaic plants with 177 MW in combined capacity, the ministry’s proposed ranking list shows.
It said that the investors offered prices from EUR 50.9 to EUR 59 per MWh. The ceiling for electricity from photovoltaic plants was EUR 72. The following firms had winning bids: Vemi Biogas, Kobra Global, Solarina, Mona Green Energy 2, and Brankov Solar. The 150 MW Solarina project is the only large one, while Brankov Solar is an agrisolar one.
Solarina is owned by CWP Europe, and Mona Green Energy 2 by Serbia’s Mona Holding. The three other firms are owned by Serbian citizens.
The ministry noted that the total planned investments of the winning bids is EUR 782 million.
Đedović Handanović: All produced electricity will be offtaken by Serbia’s utility EPS
Minister Dubravka Đedović Handanović said the second round of auctions was highly successful in capacity and offered prices. Importantly, all electricity from the power plants that get the premiums will go to state-owned power utility Elektroprivreda Srbije (EPS) and be used to supply domestic businesses and households.
“The offered prices are very competitive, i.e. EUR 50.9 per MWh for solar and EUR 53.5 per MWh for wind, which is significantly below the market levels. According to our incentives model, this means we don’t expect power plants will be subsidized but that they will return windfall profit to the state as long as market prices are higher than those offered by the auction winners,” she stated.
The confirmation of good conditions for investment in Serbia
Đedović Handanović stressed that the high interest by investors is a confirmation of good conditions for investments in Serbia.
“In addition to domestic investors, the winners of these auctions are also investors from China, the USA, and France. It demonstrates that Serbia is globally recognized as a good destination for investment, which will be very significant in achieving our strategic goals in the energy transition process,” she said.
In 2023, the Government of Serbia adopted the incentives plan for renewables for a three-year period through 2025. It said it would award market premiums for 1.3 GW. The first round of auctions was conducted in 2023. The selected projects, for 715 MW in total capacity, are all supposed to be connected to the grid by the end of next year.
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