The Ministry of Mining and Energy is holding consultations to amend three key regulations related to market premiums, feed-in tariffs and quotas for solar and wind power plants, in anticipation of a new round of auctions scheduled for November.
The Renewable Energy Sources (OIE) Serbia business association has noted that the proposed changes to the quotas for wind and solar power are not unexpected. According to their insights, the most significant modifications are found in the draft Regulation on the market premium and feed-in tariff, indicating that an “interesting and complex” auction process lies ahead.
In the draft regulation concerning solar power plants, a quota of 124.8 MW is proposed for installations with a capacity of 500 kW or more. This represents a substantial increase from the previous quota of 50 MW set in 2023. Conversely, the draft regulation for wind farms suggests a new quota of 300 MW for those with a capacity of 3 MW or more, a reduction from the 400 MW quota established last year.
Danijela Isailović, manager of OIE Serbia, explains that the changes reflect a three-year auction plan, which aims for incentives totaling 1 GW or 400 MW in 2023, followed by 300 MW for each of the next two years for wind power, and a cumulative 300 MW for solar over three auction rounds. She notes that since last year’s solar quota was not fully utilized, the unused capacity will be rolled over into the upcoming auctions.
The most substantial adjustments are seen in the proposed amendments to the Regulation on market premiums and feed-in tariffs. Isailović points out that these changes introduce principles aimed at fairness, including limits on maximum bids during the auction and measures to prevent collusion among bidders.
Additionally, the introduction of “non-price” criteria is noteworthy, as it will evaluate bidders based on their electricity purchase agreements with guaranteed suppliers and the end users of the green energy produced.
Isailović anticipates that the auction process will be intricate and competitive. The auctions are expected to be announced in November, contingent on the adoption of the revised regulations and the determination of maximum auction prices for wind and solar energy. Last year, the maximum auction prices were set at 105 euros per MWh for wind and 90 euros per MWh for solar.
The Ministry of Energy has expressed that these regulatory amendments will enhance the investment climate for renewable energy sources, ultimately benefiting the economy and citizens by reducing costs and processing times.
Energy expert Željko Marković emphasizes that the proposed changes align with Serbia’s Energy Development Strategy, which targets 1.7 GW from solar energy and substantial contributions from wind power by 2030. He highlights the ongoing commitment to constructing solar power plants, with current contracts in place for 1 GW capacity.
Marković views the proposed quota increase as a necessary push for solar energy, given the current lack of capacity in that sector. He notes that a guaranteed price provides stability for investors, ensuring predictable returns over the long term. He also remarks that the unfilled solar quotas from last year justify the increase in this year’s allocations.
Overall, both experts agree that while these changes signal a proactive approach towards renewable energy, continuous assessment will be essential to align capacity development with Serbia’s ambitious renewable energy goals.
