Serbia’s second renewables auction attracts global investment

Serbia’s second renewables auction attracts global investment
/ bne IntelliNews
By bne IntelliNews February 24, 2025

Serbia successfully allocated its full 424.8-MW quota in the second round of its renewable energy auction, supported by the European Bank for Reconstruction and Development (EBRD), the country’s Ministry of Mining and Energy announced on February 21.

With the latest auction, Serbia continues to make strides toward its renewable energy goals, welcoming both domestic and international investments from countries including China, the United States and France.

The winning bidders include Matrix Power, owned by French developer Akuo Energy, Windvision Windfarm A and B, Crni Vrh Power, backed by Chinese firms Shanghai Electric Power & Energy Development and CMC Capital, and Jasikovo, a Serbian company.

The auction attracted significant interest, with 41 projects submitted by investors. While 37 of the submissions were valid, bids exceeded the available quota in both segments. Investors requested 444 MW of wind energy and 260 MW of solar power, far surpassing the 300-MW and 124.8-MW quotas for wind and solar respectively.

Serbian Minister of Mining and Energy Dubravka Dedovic Handanovic confirmed that the auction's outcome will lead to the construction of 10 new wind and solar power plants, with a total investment value of €782mn. “The second round of auctions was extremely successful, both in terms of capacity and the prices offered,” she said, noting that the total capacity of the awarded projects had exceeded expectations at 645 MW, surpassing the original 424.8 MW quota.

Dedovic Handanovic said that the prices offered for both wind and solar energy were highly competitive, with solar priced at €50.9 per MWh and wind at €53.5 per MWh, both well below current market levels. All electricity generated by the awarded projects will be supplied to Serbia's state-owned electricity company, Elektroprivreda Srbije (EPS), to support the country's economy and households.

The minister further highlighted that the new wind and solar plants would enhance Serbia’s energy security, as investors committed to supplying energy to domestic consumers for the next 15 years. "This will mean greater energy security for our country," she added.

The auction results align with Serbia’s broader strategy to transition to renewable energy. The ministry has also announced that the EPS is investing in its own renewable energy projects, including a wind farm in Kostolac and a solar power plant in Petka, both expected to be operational later this year. Additionally, EPS plans to build balanced solar power plants with battery storage, amounting to 1 GW over the next three years.

The government aims to have every second megawatt-hour of electricity produced from renewable sources by 2030. As part of its renewable energy strategy, Serbia has introduced a three-year incentive system, which includes a 1,300-MW market premium for renewable energy producers. The first round of auctions, held in 2023, secured 715 MW of capacity to be connected to the grid by the end of 2024.

bneGREEN

Dismiss