Government sets market premium quota for solar power plants – Serbia, 03 June 2023

Serbian Government has set the quota in the system of the market premium for solar power plants. The quota for solar power plants with an approved capacity of 500 kW and more amounts to a total of 50 MW.

The Law on the Use of Renewable Energy Sources envisages the carrying out of auctions for awarding the right to a market premium to RES facilities. The auctions are carried out based on the quotas proscribed by the Government in line with the needs for such new capacities from renewable energy sources, and considering the valid planning documents in the field of energy, the international obligations, that is, the available data on the existing capacities, the planned needs and other data of significance for the setting of quotas.

The right to take part in the auctions for awarding the rights to the market premium is given to power plants which are not small facilities (power plants with an approved capacity of over 500 kW and wind farms with an approved capacity of over 3 MW).

Based on the carried out analyses of the current state of the market and the data that the ministry in charge of energy affairs has, it has been determined that there is the need to award incentives for the production of electrical energy from solar power plants, where there is currently over 100 MW of solar power plants for which the energy permits have already been issued, which is considerably more than the proposed quota, and based on which there will be great competition at the auctions.

Serbia currently has 23 MW in solar power capacity, which is considerably less than the capacities of the wind farms and far below its solar energy potentials. Therefore, the proposed the quota aims to incite a quicker development of this market segment, and to the end of meeting the goals of the green transitions and decarbonization, which will require considerably higher solar capacities, and which will be defined through strategic documents.

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