Serbia Has Launched Its First Auction Of Renewable Energy Projects, Allocating 50MW Of Solar Projects

Serbian authorities have launched the country's first renewable energy auction, allocating 50 MW of photovoltaic projects and 400 MW of wind projects. These projects will be supported through contracts for difference over a 15-year period.

Serbian Prime Minister Brnabic has launched an auction to allocate 450 MW of renewable energy capacity.

Serbia has allocated 50 MW of solar PV projects and 400 MW of wind projects in its first renewable energy auction. The projects will be supported through a 15-year contract for difference. The upcoming auction sets a ceiling price of €105 ($113.56) per megawatt-hour for wind farms larger than 3 MW and €90 per megawatt-hour for solar projects larger than 500 kW. State-owned utility Elektroprivreda Srbije (EPS) will be the exclusive offtaker for these projects. The bidding deadline is August 14, 2023.

The auction is the first phase of a three-year plan to allocate fees for a total of 1,000 MW of wind capacity and 300 MW of solar capacity.

"Taking into account the relevant market prices, it is estimated that with the successful implementation of the auction, the Serbian power company will receive more than 3 million euros per year," Dubravka d 'Edovidic, Serbia's Minister of Mines and energy, said in a statement.

Successful bidders must comply with a newly adopted balanced responsibility contract model that requires them to pay a surcharge to EPS for output deviations. The surcharge will be calculated based on the previous day's market prices, the government said.

The auction will receive financial support from the European Bank for Reconstruction and Development (EBRD). In March, the EBRD approved a €300 million EPS financing program to accelerate the development of wind and solar energy and help Serbia meet its goal of phasing out coal by 2050. The bank has been assisting Serbia with renewable energy auctions since 2020. According to the description of the draft plan of the Serbian government, the country plans to achieve the goal of 8.3 GW of PV installed capacity by 2024. According to the International Renewable Energy Agency (IRENA), Serbia has 137 MW of installed PV capacity by the end of 2022.