Serbian Minister of Energy Dubravka Djedovic, Belgrade Energy Forum (BETAPHOTO/MILOS MISOV)
The Serbian Government and Ministry of Mining and Energy have launched auctions for feed-in premiums for renewable energy, namely 400 megawatts of wind power and 50 megawatts of solar power.
Mining and Energy Minister Dubravka Djedovic announced on June 14 that the auction process has been digitalized, ensuring its speed, efficiency and transparency, and that its expected outcome are 450 new megawatts of green energy for the citizens and industry of Serbia.
“These auctions are the largest simultaneously held in the Western Balkans. We are staging them in accordance with the best global practices and are adopting feed-in premiums, which allow better cost management,” Djedovic said.
She added that the initiative would lead to more direct foreign investments, an increase in the gross domestic product, the development of the local construction industry, the “potential” reduction of power costs and a more secure power supply for Serbia’s users.
Djedovic also expressed her expectation that the Serbian power company EPS will actively participate in this initiative.
The planned floating feed-in premiums (FIPs) are designed to protect renewable energy producers from drops in the market price of energy compared to the fixed tariff they offered at the auctions, in that the state will cover any such price difference.
Should the market price of green energy exceed the producer’s specified tariff, the producer will pay the price difference to the state. The FIPs will be calculated based on market prices listed on the South East European Power Exchange (SEEPEX).
The highest price a renewable energy producer can list at the auctions has been set by the Government to EUR105 per megawatt of wind energy and EUR90 per megawatt of solar power.
Priority will be granted to those investors whose bids are the lowest compared to the Government’s set maximum. This is expected to reduce the cost of electrical energy in the country.
The auctions are also the first implemented within the Mining and Energy Ministry’s Three-Year Incentives System Plan, which envisages feed-in premiums for a total of 1,300 megawatts of energy from renewable energy sources.
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