Serbia launches first renewables auction with 50 MW of solar

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Serbia’s Prime Minister Ana Brnabić has launched an auction to allocate 450 MW of renewable energy capacity.

Serbia has allocated 50 MW for solar PV and 400 MW for wind power in its initial renewable energy auctions. The projects will receive support through a 15-year contract for difference. The upcoming auctions have set ceiling prices of €105 ($113.56)/MWh for wind farms over 3 MW and €90/MWh for solar projects over 500 kW. State-owned utility Elektroprivreda Srbije (EPS) will be the exclusive off-taker for these projects. The bidding deadline is Aug. 14, 2023.

This auction marks the first phase of a three-year plan, aiming to allocate premiums for a total of 1,000 MW of wind power generation capacity and 300 MW of solar.

“It is estimated that with the successful implementation of the auctions, the Electric Power Company of Serbia will earn more than €3 million annually, taking into account the relevant market prices,” Serbian Minister of Mining and Energy Dubravka Đedović said in a statement.

The successful bidders will have to adhere to the newly adopted balancing responsibility contract model, requiring them to pay surcharges to EPS for output deviations. Surcharges will be based on day-ahead market prices, according to the government.

The auctions will receive financial support from the European Bank for Reconstruction and Development (EBRD). In March, the EBRD approved a €300 million financing package for EPS to accelerate wind and solar development and help achieve Serbia's coal phase-out goal by 2050. The bank has been assisting Serbia with renewables auctions since 2020.

Serbia aims to install 8.3 GW of PV by 2024, as outlined in the government's draft plan. According to the International Renewable Energy Agency (IRENA), Serbia's installed PV capacity stood at 137 MW by the end of 2022.

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