Renewables

Serbia to launch auction for wind farms in third quarter of 2022 – ministry

serbia auctions premiums wind farms ministry

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Published

May 6, 2022

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Published:

May 6, 2022

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The Ministry of Mining and Energy plans to announce auctions in the third quarter for awarding premiums for the construction of renewable energy power plants, the ministry said to the Balkan Green Energy News. The Serbian government has already set a 400 MW quota for wind farm premiums.

Auctions in Serbia (rules and conditions for auctions) were announced for the end of the last year or the beginning of this year, but the decision was not taken. It is worth mentioning that the elections took place at the beginning of April in Serbia.

Now the ministry said that there are certain obstacles, more precisely, the decree on balance responsibility and criteria for determining the liquidity of the intraday market has not been adopted. However, it ensures the problems would be solved, auctions launched and premiums awarded.

The decree needed for the launch of the auctions wasn’t negotiated with the state utilities, and investors

The ministry did everything necessary to implement the auctions, which would enable investments in renewable energy and implement the measures defined by the Sofia Declaration and the Paris Agreement, by passing the first special Law on Renewable Energy Sources, adopting bylaws, and preparing and software for electronic auctions.

However, in order to conduct the auction, the decree on taking over balance responsibility and criteria for determining the liquidity of the intraday is also needed.

Individuals are trying to prevent energy transition

Although a draft decree was prepared, the regulation wasn’t agreed with the power utility Elektroprivreda Srbije (EPS), and transmission system operator Elektromreža Srbije (EMS), and investors.

The ministry is aware of various interests, and the need of individuals to prevent the green energy transition in Serbia by blocking the implementation of the law on renewables or developing new investments in renewables, the ministry said.

Premiums would be awarded by the end of the year

According to the ministry, regardless of all obstacles, the auctions will be announced in the third quarter of this year, and a premium will certainly be awarded by the end of the year.

Of note, at the beginning of the year, there was an intense misunderstanding between the ministry, on the one hand, and state utilities EPS, and EMS, backed by regulatory agency AERS, on the other hand. EPS, and EMS have demanded the law on renewables be changed and the adoption of bylaws for subsidizing green energy be stopped.

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