Three bids for strategic partner for 1 GW of solar in Serbia

The Government of Serbia has received three bids for a strategic partnership to install solar power plants totaling 1 GW, with batteries, Balkan Green Energy News learned.

In late July, the Ministry of Mining and Energy of Serbia launched a public call to select a strategic partner to install solar power plants totaling 1 GW in connection capacity (1.2 GW in peak terms) alongside at least 200 MW of battery storage, with the possibility of storing a minimum of 400 MWh.

The deadline for submitting offers expired yesterday, when the bids were opened.

The offers were submitted by China Energy International Group Co. Ltd., Direkt Solar Kühn GmbH, and a consortium consisting of Hyundai Engineering Co. Ltd., Hyundai Engineering America Inc. and UGT Renewables LLC.

Direkt Solar Kühn’s bid did not meet the criteria determined in the public call.

The strategic partner should build the facilities and hand them over to government-controlled power utility Elektroprivreda Srbije (EPS) under a turnkey deal.

Of note, the Government of Serbia also intends to look for a strategic partner for the construction of wind farms with a total capacity of 1 GW.

The working group is tasked with selecting the best bid

The procedure for selecting the strategic partner is led by a working group. After determining whether the companies met the criteria for participation, it is tasked with evaluating the bids. Ones that do not meet the criteria will not be considered, the public call reads.

Eligible companies had to demonstrate experience in the construction of power plants, with an overall capacity of at least 25,000 MW in their track record. They must have more than 5,000 employees, and a EUR 4.5 billion turnover each year over the last three years.

After ranking the bids, the working group needs to propose a decision with regard to the selection of the strategic partner and submit a report to the government.

The procedure is conducted under different rules than for public procurement and public-private partnerships

The public call was launched under a framework different than the ones for public procurement and public-private partnership.

After the government adopts a decision, the working group conducts negotiations with the selected partner with the aim of signing a project implementation contract, the document reads. In the same phase, a project financing agreement needs to be drafted.

The working group then submits a report to the government with a proposal to sign the contract or to determine other next steps, depending on the result of the negotiations.

Finally, the government and the selected strategic partner sign the project implementation contract. It comes into force after the project financing contract is signed and takes effect.