TENDERING: EBRD seeks consultant for renewable energy auctions in Serbia
Firms and consortiums can submit proposals to the EBRD by June 8 for assistance and advisory services in the preparation and implementation of renewable energy auctions in Serbia.
In line with the request from Serbia’s Ministry of Mining and Energy, the European Bank for Reconstruction and Development is open for proposals for assistance in the introduction of competitive auctions for energy from renewable sources and in improving the efficiency of balancing costs for the emerging sector. The bank, which previously provided recommendations, said the selection would be conducted in a single stage. Renewable energy auctions are required in the transposition of the European Union acquis in Serbia, the note adds.
The cost estimate is EUR 1.3 million excluding value-added tax and questions will be received until May 21. The deadline for proposals is June 8. The Swiss State Secretariat for Economic Affairs (SECO) is providing the majority of the funds for this technical assistance assignment, in an amount of up to EUR 1,150,000.
Serbia is stimulating renewable energy projects via a feed-in tariff scheme but it intends to switch to auctions and base the system on a benchmark market price of electricity
EBRD said it expects to fund the assignment from its Technical Cooperation Fund Programme and that it is likely to start in July and last up to two years, depending on external factors. The public call is for firms or groups of firms.
The government announced a plan two years ago to launch competitive renewable energy auctions in Serbia. So far the sector’s development, necessary for national energy and climate objectives, was stimulated via feed-in tariffs (FiT), determined by the authorities.
The Balkan country had only 10 MW of solar power capacity at the end of last year, the International Renewable Energy Agency has said, compared to the 100 MW target for 2025.
The consultant’s assignment should start in July and last for up to two years
The consultant’s task will be to detail recommendations on the design of the auctions in their institutional, legal and regulatory dimensions. It will study payment and funding arrangements for the existing FiT contracts and future purchase power agreements (PPAs) and, eventually, contracts for difference or CfDs – those corresponding to projects awarded through competitive procurement processes. The financial equilibrium of existing PPAs must be preserved, according to the documentation.
The mechanism brings support to renewable energy in relation to a reference electricity market price. Input is needed on the market and regulatory conditions under which renewable energy producers can become balancing responsible parties, EBRD said. The assignment includes environmental assistance and the evaluation of the process after implementation and further recommendations.