Photo: Aleksandar Vučić/Facebook
The Government of Serbia has signed an agreement with the Hyundai Engineering-UGT Renewables consortium on building solar power plants with a total connection capacity of 1,000 MW (1,200 MW in nameplate capacity), along with battery systems for electricity storage of up to 200 MW/400 MWh. The signing will be followed by talks on financing terms. Once the construction is completed, the plants will be handed over to state power utility Elektroprivreda Srbije (EPS).
The strategic partnership agreement between Serbia and the Hyundai Engineering-UGT Renewables consortium was signed by Dubravka Đedović Handanović, Serbia’s minister of mining and energy, Dušan Živković, the general manager of EPS, Adam Cortese, the CEO of US-based UGT Renewables, Hyeon-Sung Hong, the president and CEO of South Korea’s Hyndai Engineering, and Sang Min Park, the strategic manager of the Hyundai Engineering Belgrade branch.
The signing at the Serbian presidency building was attended by President Aleksandar Vučić, US Ambassador Christopher Hill, and Minister-Counsellor at the Embassy of the Republic of Korea in Serbia Jung Woo Lee.
In November 2023, the Government of Serbia selected the Hyundai Engineering-UGT Renewables consortium as the top bidder in a public call for a strategic partner for building the solar power plants and battery storage capacities. In late September, the government adopted a decision to develop a special purpose spatial plan for six solar power plants and batteries, envisaging the construction of the facilities on the territories of two cities and four municipalities.
Solar power plant Sikole (Negotin/Zaječar) will have a connection capacity of 461 MW, Jasenica (Negotin/Zaječar) 70.2 MW, Jablanica (Leskovac/Lebane) 303 MW, Togočevce (Leskovac/Lebane) 65.9 MW, Bački Gračac (Odžaci) 65.9 MW, and Srpska Kuća (Bujanovac) 35.1 MW.
Serbia will save EUR 3.6 billion over 30 years
Dubravka Đedović Handanović, Christopher Hill, Aleksandar Vučić and Hyon Song Hong (photo: Aleksandar Vučić/Facebook)
President Aleksandar Vučić stressed that the project is part of the most important work Serbia must complete before the Expo 2027 exhibition, which concerns energy security and stable electricity supplies in the coming years.
“The solar power plants will be able to produce an average of 1.6 TWh to 1.7 TWh, which is equal to Serbia’s imports, at a time when electricity is quite expensive and highly sought-after in the region,” he said.
During the project’s 30-year lifespan, the country will save EUR 3.6 billion, or EUR 120 million a year, he stressed, adding that estimates are even higher given the expected dramatic increase in electricity prices.
Serbia will pay less taxes to Europe on many products
The project, he said, is important because it will provide renewable energy that will stay in Serbia rather than being exported. According to him, the 200 MW of batteries is also crucial, as it will enable energy storage.
The batteries will partially compensate for pumped-storage hydropower plant Bistrica, offering the only quick and viable solution for ensuring sufficient energy, Vučić pointed out.
The project, according to him, means that Serbia will pay no or less taxes (carbon border tax) to Europe on a number of products, as all companies wishing to export their goods will be required to have a certificate proving they were produced using green energy.
Financing terms could be agreed by December
The sides should now discuss financing terms for the project. “The deadline is late April or early May, but I believe we can agree on the terms by the end of December,” Vučić pointed out.
He stressed that the project would provide a major financial boost to poorer municipalities in Serbia, such as Negotin, Zaječar, Lebane, Blace, Odžaci, and Bujanovac. “As I understand it, 92% of the land is state-owned, which means there are no issues at all,” said Vučić.
He also announced that Serbia intends to buy a part of the wind industry that has gone into private hands, in order to ensure this electricity remains in the country, instead of being exported.
Cortese: a strategic investment in Serbia’s future
Adam Cortese (photo: Aleksandar Vučić/Facebook)
UGT Renewables CEO Adam Cortese said the partnership with the Government of Serbia goes beyond electricity production and aims at building a future – a future with strong economic ties between the United States and Serbia, a future that is safe and growth-oriented.
According to him, the project is not only a technological advancement but also a strategic investment in Serbia’s future. It will revolutionize the country’s energy portfolio, strengthen its energy security, and reduce CO2 emissions by 1.36 million tons per year, he asserted.
Cortese said he believes that UGT Renewables was not chosen only for its technical expertise, but also because its values align with the Serbian government’s vision to strengthen local communities and create jobs, leading to long-term economic growth.
He announced that hundreds of millions of dollars will be directly injected into the Serbian economy, as the consortium will select local partners to build the power plants and batteries.
Hong: One of the largest projects of its kind in Europe
According to Hyeon-Sung Hong, the CEO of Hyndai Engineering, the signing of the contract rounds off the commercial arrangement for the construction of the power plants and batteries.
The company, as he stated, has gained extensive experience with successful large-scale projects around the world and is now expanding into the field of sustainable, green energy, offering clean technological solutions.
He said that the project in Serbia, in partnership with the Government, is significant for the company, and that it is one of the largest projects of its kind in Europe. When the power plants start operating, it will drastically change Serbia’s energy portfolio, according to him.
He added that he hopes the project will serve as an example of good practice that will encourage many American and Korean companies to enter the Serbian market.
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