Djedović Handanović: Auctions Announced for Incentives to Build 424.8 MW of Renewable Energy Power Plants

Minister of Mining and Energy Dubravka Djedović Handanović, stated that of the total quota offered at the auction, 300 MW is allocated for wind power plants and 124.8 MW for solar power plants.

“Securing greater capacity from clean sources through these auctions will lead to increased electricity production in our country, contributing to higher economic growth and attracting more foreign direct investment. Enhancing the share of green energy in our energy mix is also crucial for meeting the targets of the Green Agenda, and its availability is increasingly a requirement for investors considering investments in Serbia," said the Minister.

She pointed out that the maximum price offered at the auction —79 euros per megawatt-hour for wind power plants and 72 euros per megawatt-hour for solar power plants— is designed to ensure that the share of green energy increases at a price that is acceptable to both citizens and the economy.

This public call introduces several novelties compared to the previous round of auctions. The most significant one being that investors who, in addition to the offered price, offer capacity to a guaranteed supplier or end customer through a power purchase agreement for renewable energy sources, for a period of three to 15 years, will have an additional advantage.

"This means that we are additionally encouraging investments that will ensure that energy produced from domestic, clean sources is used for the needs of our citizens and the economy, thereby improving the energy security of our country," the Minister said.

Among other things, a novelty is a cap on the maximum quota at auctions for solar power plants that can be awarded to a single auction participant set at 105 MW for one or more power plants. This will ensure equal treatment for smaller producers and their projects in comparison to large RES producers. In addition, the auction rules stipulate that the capacity offered by a power plant cannot exceed the prescribed quota.

The Minister added that the first auctions, conducted in August last year through a fully digitalized process, were highly successful, securing 715 new green megawatts and more than 1.1 billion euros in investments.

"We expect significant interest from investors in these auctions as well and anticipate that the entire quota will be utilized for both wind and solar energy. We are hopeful for even more competitive and lower prices due to strong competition. This would bring us closer to achieving the goal set by the three-year incentive plan for RES, which foresees 1,300 MW of new capacities from RES," stated Djedović Handanović.

Matteo Colangeli, EBRD Regional Director for the Western Balkans, said:

“We believe that auctions are the most effective tool for securing green energy at competitive prices, and we are proud of the partnership we have built over the years with the Serbian authorities to introduce the necessary regulations and implement these processes. Following the success of last year’s auction, this second step towards fulfilling Serbia’s announced three-year plan of 1,300 MW is an important signal to investors and all market participants about the country’s commitment to increasing wind and solar capacity. It is a commitment that we intend to continue supporting in the coming years through additional investments, technical assistance and policy advice.”

The auction is being conducted electronically via the “RES Auctions Portal” https://oieaukcije.mre.gov.rs, and the deadline for submitting applications is 5 February 2025.