Serbia issues quota for upcoming solar power auction, adopts rules on balancing, premiums, feed-in tariffs

Serbia quota solar power auction

Photo: Lhzuniga from Pixabay


June 2, 2023






June 2, 2023





The Government of Serbia determined the quota for market premiums that it intends to award for solar power and defined the rules on balancing responsibility, market premiums and feed-in tariffs.

Decrees on the quota for the market premiums for solar power plants, on the balancing responsibility contract model, and on market premiums and feed-in tariffs were adopted within the final preparations for organizing renewable electricity auctions. Minister of Mining and Energy Dubravka Đedović said earlier this week that the first auction procedures would be launched in June.

The quota was set at 50 MW for solar power plants with an individual capacity of at least 500 kW. The wind power quota, 400 MW, was determined in November 2021.

Market premium beneficiaries are obliged to pay two surcharges to the guaranteed supplier for balancing deviations

The balancing responsibility decree specifies the contract model and the rights and obligations of the guaranteed supplier and the privileged producers benefitting from the market premium mechanism. The contracts should be signed between the guaranteed supplier – state-owned power utility Elektroprivreda Srbije (EPS) – and the developers that win the premiums at auctions.

The bylaw also defines the criteria for good electricity output forecasting and the surcharge that a privileged producer pays in case of failing to achieve them. It stipulates the duration of the contract and the terms of ending it, together with the conditions for signing such a deal and the related process.

The producer is obligated to pay two surcharges to the guaranteed supplier. The first is for every megawatt-hour produced. The decree says it would be determined as a fixed percentage of the maximum price that was offered at the auction in which the developer won the privileged producer status.

The other surcharge will be paid for balancing deviations in either direction, defined as the difference between the so-called good forecast level and the output that the producer reports. The sum will be determined by the price of electricity on the day-ahead market, the government said.

The maximum premiums will be determined by the Government of Serbia

The decree on market premiums and feed-in tariffs defines the rules for organizing auctions and the conditions for acquiring the status of a privileged power producer. As said earlier, the new decree envisages that maximum premiums will be determined by the Government of Serbia, not the Energy Agency of the Republic of Serbia (AERS).

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