RES auctions to add new 1,300 MW of capacity – Serbia, 06 June 2023

Serbian Government adopted the plan for the renewable energy incentives system for the 2023-2025 period, with the focus on electricity production from wind and solar energy. However, the plan does not include incentives for the construction of small hydro power plants in this period due to their environmental controversies.

The total capacity within the market premium system in the period of the next three years amounts to 1,000 MW for the wind farms and 300 MW for the solar power plants.

The plan is for the first auctions for the awarding of the market premium to be held in the second quarter of 2023 for 400 MW of wind capacities and 50 MW of solar capacities. The next auctions for the allocation of the market premium will be held in the first quarter of 2024, where the auction quota will amount to 300 MW for wind farms and 100 MW for solar power plants, and in the first quarter of 2025, where the auction quota will amount to 300 MW for wind farms and 150 MW for solar power plants.

The first auctions this year will be carried out in a traditional, simpler form, where the incentives are allocated based on the financial offer. The future auctions should include other criteria as well, such as the readiness of the producer to offer electricity to the guaranteed supplier for the needs of the guaranteed supply of households or to another end-buyer through a direct agreement on the buyout of renewable energy sources, which will ensure that the users of the incentives sell electricity in Serbia for the needs of the citizens and the economy and not for exports.

Biogas power plants are not included in the plan, because feed-in tariffs are reserved for 68.26 MW, whose realization is expected by the end of 2025. In addition to currently operational biogas capacity of 28.48 MW, this will bring the total to nearly 100 MW, which is more than enough, considering that the feed-in tariff for electricity produced at biogas power plants is very high and amounts to 200 euros/MWh, so an additional inciting of biogas power plants could lead to an overload of the incentive system.

The plan doesn’t envisage auctions for other technologies either, such as biomass power plants, geothermal and other power plants, considering that there are no projects which would make the procedure competitive.

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