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The Government of Serbia and the Ministry of Mining and Energy have launched auctions for incentives for renewable energy sources, with a 400 MW quota for wind farms and 50 MW for solar power plants.
Serbia’s first renewable energy auctions mark the beginning of the implementation of a three-year incentives plan, which envisages market premiums for a total of 1.3 GW of renewable energy capacities for the 2023-2025 period. Minister of Mining and Energy Dubravka Đedović said the auctioning procedure is digitized, ensuring a swift, efficient and transparent process that will bring 450 of new green megawatts for the Serbian economy and citizens.
Investors have two months to send bids
Instructions and the public call are available at oieaukcije.mre.gov.rs, while any queries investors may have regarding the application process will be answered by the auction committee.
Applications are to be submitted via the same website over the next 60 days, or until mid-August this year.
With these auctions, implemented in line with the best European and international practices, Serbia switches to market premiums, which enable better cost management and a greater overall benefit for the energy system, according to Đedović. The new model is expected to spur foreign direct investment and GDP growth, while bringing down electricity prices and ensuring a more secure supply, according to her.
Incentives will be awarded to investors who offer the lowest price
The price ceilings set by the Government of Serbia are EUR 105 per MWh for wind power EUR 90 per MWh for solar power.
Incentives will be awarded to investors who offer the lowest prices compared to the price ceiling. “This is expected to result in lower electricity costs,” said the ministry.
Technical assistance for the development of the legal and regulatory framework for auctions is provided by the European Bank for Reconstruction and Development (EBRD), with financial support from Switzerland’s State Secretariat for Economic Affairs (SECO) and EBRD shareholders.
Regulatory groundwork for auctions
The launch of auctions follows the recent adoption of changes to the Law on the Use of Renewable Energy Sources and supporting bylaws, which laid the groundwork for a faster integration of new renewable energy capacities into Serbia’s power system, while maintaining the reliable and stable system operation and ensuring the participation of state power grid operator Elektromreža Srbije (EMS) and power utility Elektroprivrede Srbije (EPS), the ministry said.
Minister Đedović also said she expects EPS to take an active role in the auction process in order to ensure a more secure supply for citizens and businesses.
Successful auctions are expected to bring in more than EUR 3 million in annual revenues to EPS, based on relevant market prices, said Đedović.
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