Serbia’s first-ever tokenization in energy sector: Saraorci solar project yields 6% interest

The first tokenization in Serbia’s energy sector has been completed, with AVR Solar Park selling 80% of AVR Solar Tokens, worth EUR 600,300, out of EUR 725,000 on offer. The company stressed that this innovative financing model could solve the problem of unfavorable financing requirements in the Serbian market.

The recepits from the sale of AVR tokens will finance the expansion of the SE Saraorci solar power plant. The facility, with a capacity of 9,856 MW, was built by Power China and commissioned in May last year. Until a few days ago, along with the DeLasol plant, it was the largest photovoltaic plant in Serbia.

Marko Đurić, who is in charge of finance at AVR Solar Park, told Balkan Green Energy News that even during the construction of SE Saraorci, there was an idea to expand it and increase production by 10-12%. The annual output would rise from 15.1 GWh to 16.8 GWh, with the capacity remaining at 9.856 MW.

Đurić: The investors are struggling to meet financing requirements

“Our company had already invested significant funds in the preparatory works for the expansion. Among other things, we had already secured a building permit. With tokenization, we tried to raise the rest of the funding needed for the expansion,” he said, noting that the expansion has been completed.

According to Đurić, the construction of solar power plants in Serbia has slowed considerably. The demanding financing requirements, which investors find difficult to meet, are among the main contributors. In most cases, companies are required to have ten-year power purchase agreements (PPAs) at a fixed price.

However, PPAs on the Serbian market are signed for a maximum of five years, he noted.

In his words, a fixed price can be achieved through auctions, but this implies fixed income over 15 years, and there is no progress. Also, financial institutions cannot back a project unless the investors secure 60% of the cost from their own funds, which very few can do, according to Đurić.

Token buyers receive 6% interest

AVR Solar Park offered 7,250 tokens with a nominal value of EUR 100 apiece, payable in RSD. The initial offering of AVR Solar Tokens started on November 22, 2024, and ended on February 19.

Buyers of the token acquired the right to receive 10% of the principal at the end of each year and a fixed 6% interest. The minimum investment amount per investor was EUR 3,000. The tokenization was approved by the Securities Commission. The table below shows an example of an investment in 100 AVR Solar Tokens.

Digital tokens make it possible to bypass the bank as the chief intermediary in financing, and AVR Solar Park sees this as a benefit, especially for those who want to invest their money in a specific project – institutional investors or individual, small investors.

Đurić: the opportunity to be part of the green transition

The company has opted for tokenization as a way of financing, primarily because it enables transparency. “By purchasing AVR Solar Tokens, you not only ensure a stable financial return, but you also get the opportunity to be part of the green transition in the energy sector and thereby contribute to reducing pollution in our country and on our planet,” Đurić stressed.

Compared to other investment opportunities, investors in tokens could benefit from the fact that tokens are denominated in euros.

Also, the 6% interest is more than what any bank or bond offers, especially for such a long period, Đurić asserted. Another benefit for investors is the simplicity of investing in tokens as it can be done “from the comfort of one’s bed.”

How are token buyers protected?

Đurić said there are various measures to reduce the risk for investors. First and foremost, the solar plant is fully operational, generating income.

“The return for investors is guaranteed based on a 10-year PPA signed with a licensed electricity trader. It could be annexed to add the output from the expanded facility. This contract is the biggest guarantee for the interest payments, enabling steady income,” Đurić pointed out.

In addition, the project also includes additional security measures. For example, if production is lower than projected, the contractor Boffetti Balcan, a subsidiary of Italy-based Boffetti SPA, is required to compensate for the difference. The project is also fully insured.

The construction of a new solar power plant is underway

AVR Solar Park said tokenization was a pilot project to test the market. The company also sees it as a crucial step toward the broader use of tokenization in Serbia and the region.

According to Đurić, the company aims to finance much larger projects in the future. Anyone who invested in this pilot project will have an advantage in investing in the next ones, he added.

The firm is currently building the Zvečka solar power plant, with a capacity of 9.95 MW, in the municipality of Obrenovac. The plan is to put it into operation by June 2026.