The second round of auctions for the construction of renewable energy power plants with state incentives has concluded, resulting in a total capacity of 424.8 megawatts. Rade Mrdak, advisor to the Minister of Energy, shared that the auction sparked significant interest, particularly for solar power plant projects. He also highlighted a new feature in the ranking of projects that aims to encourage producers to retain the electricity they generate within Serbia.
A total of 40 applications were received for the second round of auctions, a figure that is considered high, with a combined requested capacity of 1,171 megawatts. This is nearly three times the planned incentive capacity, indicating a strong interest from investors.
Mrdak emphasized that intense competition is expected, with the most favorable price alongside other criteria determining the winners. A key factor in the selection will be an investor’s willingness to provide electricity to end customers in Serbia, as part of efforts to retain the electricity produced within the country.
Following the application process, all submissions will be reviewed, and a shortlist will be generated, with the projects ranked using specialized software.
A notable shift in trends was observed in the types of applications received. In the past, the majority of submissions were for wind farms, but this time, solar power plants dominated. In this round, 33 applications were received for solar power plants, compared to just nine in previous auctions, while the number of applications for wind farms remained steady at seven, the same as in prior rounds.
Both foreign and domestic investors participated in the auctions. Foreign investors, Mrdak noted, tend to focus on large-scale projects in the transmission system, while domestic investors are more active in the distribution network with smaller-scale projects.
Geographically, the most attractive areas for solar power plants are in southern and southeastern Serbia, while wind farms are mostly concentrated in South Banat and eastern Serbia.
Currently, Serbia has a total of 608 megawatts of wind power capacity, spread across 11 wind farms, and 182 megawatts of solar power capacity from 179 solar power plants. When factoring in the small power plants owned by producers, the total number increases to about 4,000 plants.
Regarding smaller-scale auctions, 115 megawatts have already been realized, and Mrdak expects that 600 megawatts will be achieved in the next two years.
Serbia has set an ambitious target of sourcing 45% of its electricity from renewable sources by the end of this decade. At present, renewable energy contributes 37% to the national electricity mix.
With large-scale projects like the 1,000-megawatt solar power plants with battery storage being developed by the Electric Power Industry of Serbia (EPS), Mrdak is optimistic that the country is on track to meet its renewable energy goals.
