The Serbian Ministry of Mining and Energy has announced the second round of auctions for market premiums aimed at supporting renewable energy projects. The upcoming auctions will allocate a total of 424.8 MW, with 300 MW designated for wind farms and 124.8 MW for solar power plants.
Minister Dubravka Djedovic highlighted that the increased renewable energy capacity from these auctions will not only boost electricity production but also drive economic growth and attract more foreign investments. She emphasized that expanding the share of green energy is essential to meeting Serbia’s Green Agenda goals and is becoming a critical factor for potential investors.
The auction features a maximum bid price of 79 euros/MWh for wind energy and 72 euros/MWh for solar energy, ensuring that green energy expansion occurs at a cost that is acceptable to both citizens and the economy.
This round of auctions introduces several changes to the process. One of the major updates is the additional benefit for investors who offer capacity to a guaranteed supplier or end customer through a power purchase agreement (PPA) for renewable energy. This agreement must last between three and fifteen years, providing further stability for the market.
Another notable change is the introduction of a cap on the maximum quota for solar power plants that can be allocated to any single auction participant. A participant can secure no more than 105 MW of capacity, ensuring that smaller producers and their projects have a fair opportunity alongside larger renewable energy producers.
Minister Djedovic expressed optimism that the auction will attract significant investor interest, leading to the full allocation of the available quotas for both wind and solar projects. She also expects competitive bidding, potentially lowering prices even further. This auction marks an important step toward Serbia’s goal of increasing renewable energy capacity, part of the country’s three-year renewable energy incentive plan, which targets the addition of 1,300 MW of new renewable capacity. The first round of auctions, held in August 2023, was successful, resulting in 715 MW of new renewable energy capacity and over 1.1 billion euros in investments.
