Serbia is preparing its initial auctions for projects that use renewable energy sources, focusing on wind and solar power. The auctions will be the biggest for renewables in the Western Balkans region to date, Minister for Mining and Energy Dubravka Djedovic said on June 14. 

These auctions signify the start of the three-year incentive plan aimed at distributing market premiums among renewable energy producers. The total allocated capacity under the plan amounts to 1,300 MW, with 1 GW reserved for wind power and 300 MW designated for solar energy projects, according to a government statement. 

The auctions prioritise two primary sectors: wind farms, which will have a capacity of 400 MW, and solar power plants, which will have a capacity of 50 MW. 

The government established the upper limit for bids from renewable energy producers participating in the auction, which is set at €105 per MWh for wind farms and €90 per MWh for solar power plants.

"We are aware of the necessity of switching to cleaner energy sources and are working responsibly to take measures to decarbonize our energy sector. I believe that the first auctions for 450 MW from RES are a clear indication of our determination for cleaner and healthier energy," said Djedovic.

According to Djedovic, successful implementation of the auctions is expected to result in Elektroprivreda Srbije (EPS) generating annual revenues exceeding €3mn.

The European Bank for Reconstruction and Development (EBRD) provided the technical support and regulatory framework for the auctions, which have been backed by financial assistance from the Swiss State Secretariat for Economic Affairs (SECO) and EBRD stakeholders. 

“We are proud to support Serbia in their ambition to decarbonise the power sector and their ambitious targets to accelerate the integration of renewable energy sources through open and transparent auctions," said Matteo Colangeli, EBRD head of the Western Balkans. 

The first auction is planned for mid-August, after the applications have been collected through the OIE auctions portal on the government website over the next 60 days.