The Ministry of Mining and Energy announced on 27 November 2024, the second round of auctions for the allocation of market premiums for renewable energy sources, where investors will compete for the distribution of quotas totalling 424.8 MW.
Key Novelties
The Ministry of Mining and Energy states that of the total quota offered in the auction, 300 MW are designated for wind power plants, and 124.8 MW for solar power plants.
A larger capacity from clean sources that can be secured through these auctions will potentially bring greater electricity production in the country, contributing to higher economic growth and an increase in foreign direct investments. The Ministry also highlights that increasing the share of green energy in the energy mix is crucial for meeting the goals of the green agenda, and its availability is increasingly becoming a requirement for investors looking to invest in Serbia.
The maximum bid price in the auction, which is EUR 79 per megawatt-hour for wind power plants and EUR 72 per megawatt-hour for solar power plants, is intended to ensure that the participation of green energy increases at a price that is acceptable for both citizens and the economy.
This public call introduces several novelties compared to the previous round of auctions, with the most important being that investors who offer not only the proposed price but also a capacity contract with a guaranteed supplier or end customer, through a power purchase agreement for electricity from renewable energy sources for a period of three to fifteen years, will be given additional priority.
This means that investments are further encouraged to ensure that energy produced from domestic, clean sources will be used for the needs of citizens and the economy, thus improving Serbia’s energy security.
Among other changes, a new limitation has been introduced on the maximum quota for solar power plants in the auctions, which can be allocated to a single auction participant for one or more plants, set at 105 MW. This will ensure equal treatment of smaller producers, and their projects compared to large renewable energy producers. Additionally, the auction rules specify that the offered capacity of the power plant cannot exceed the prescribed quota.
It is worth noting that the first auctions, held in August of last year, were extremely successful, as the process was fully digitalized, securing 715 new green MW and over EUR 1.1 billion in investments.
The Ministry of Mining and Energy expects strong investor interest in these auctions as well, with the full quota being utilized for both wind and solar energy. In this way, Serbia would be closer to achieving the goal set by the three-year renewable energy incentive plan, which foresees the addition of 1,300 MW of new renewable energy capacity.
Application
The auction is conducted electronically through the “OIE Portal – Auctions” at https://oieaukcije.mre.gov.rs, and the deadline for submitting applications is 5 February 2025.
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