Serbia has taken a significant step towards boosting its renewable energy capacity, finalising a major contract with South Korea’s Hyundai Engineering and US-based UGT Renewables for the construction of solar power plants on October 16.  

The agreement follows the announcement of a strategic energy partnership between Serbia and the United States last month, which is aimed at strengthening Serbia's energy security while accelerating its transition to renewable sources. Serbia's President Aleksandar Vucic, who oversaw the signing, hailed the project as a major boost for the country's energy independence.

“This is a crucial moment for Serbia’s energy sector,” Vucic said at the signing ceremony, which was attended by US Ambassador Christopher Hill and South Korean Ambassador Jang Woo Lee. “With this partnership, Serbia is solidifying its commitment to a greener future and long-term energy security.”

The contract includes the construction of solar parks with an installed capacity of at least 1,000 MWAC/1,200 MWDC, along with battery storage systems capable of holding up to 200 MW/400 MWh. Serbia’s Energy Minister Dubravka Dedovic Handanovic and EPS director Dusan Zivkovic signed the deal on behalf of the Serbian government.

The move is a cornerstone of Serbia's recently adopted Integrated National Energy and Climate Plan (INECP), which seeks to generate 45% of the country’s electricity from renewable sources by 2030. The country aims to install 3.5 GW of solar and wind power by the end of the decade as part of this ambitious target.

The deal with UGT Renewables is expected to attract further investment into Serbia’s renewable energy sector, underscoring the country's efforts to diversify its energy mix and reduce its reliance on fossil fuels. The US has been a key investor in Serbia over the last decade, and this latest energy deal continues that trend.