Serbia concluded its 2nd CfD renewable energy auction, awarding 645 MW wind and solar capacity
Winning tariffs for both technologies were significantly lower than the capped tariffs
Investors include companies from China, the US and France, according to the Energy Ministry
The Ministry of Mining and Energy in Serbia has allocated a combined 645 MW of new solar and wind power capacity in its 2nd renewable energy auction round for market premiums through a contracts for difference (CfD) scheme. This round was oversubscribed with the offered quota of 424.8 MW capacity significantly exceeded.
The ministry attracted 41 project applications. Of these, 34 were for solar power plants and 7 for wind energy projects. It selected 10 new solar and wind power plants with a combined 645 MW capacity. Winning capacity will be executed for €782 million in investments.
The average winning tariff was determined as €50.9/MWh for solar PV and €53.5/MWh for wind, significantly lower than the capped prices of €72/MWh and €79/MWh, respectively (see Serbia’s 2nd Renewable Energy Auction Round Opens With Over 400 MW Capacity).
“According to our incentive model, this means that we do not expect there to be any subsidization of power plants, but rather that they will mostly return extra profits to the state as long as market prices are higher than those offered by the auction winners,” said Minister of Mining and Energy Dubravka Đedović Handanović.
She shared that among the winners are investors from China, the US and France. “This shows that Serbia is globally recognized as a good investment destination, which will mean a lot in achieving our strategic goals in the energy transition process,” added the Energy Minister.
Electricity generated will be procured by the state utility Elektroprivreda Srbije (EPS) and winners will sign 15-year CfD contracts.
Serbia plans to support 1.3 GW renewable energy capacity with market premiums under a 3-year plan backed by the European Bank for Reconstruction and Development.
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