Serbia has launched its second renewable energy auction that focuses on wind and solar projects, backed by the European Bank for Reconstruction and Development (EBRD).

The auction includes wind projects up to 300MW and solar PV projects up to 124.8MW under a contract-for-difference (CfD) scheme, with maximum bid prices at €79/MWh for wind and €72/MWh for solar PV.

This initiative follows technical cooperation between Serbia’s Ministry of Mining and Energy and the EBRD, with additional support from the Swiss Government through a grant from the Swiss State Secretariat for Economic Affairs (SECO).

The EBRD has been a key supporter of renewable energy auctions across its operational regions.

EBRD Western Balkans regional director Matteo Colangeli said: “We believe that auctions are the most effective tool to deliver competitively priced green energy and we are proud of the partnership we built over the years with the Serbian authorities to introduce the necessary regulations and conduct these processes.

“Following the success of last year’s auction, this second step towards fulfilling the 1,300MW three-year plan announced by Serbia is an important signal to investors and all market participants about the country’s commitment to scaling up wind and solar energy – a commitment that we intend to continue supporting in the years ahead through more investments, technical assistance and policy advice.”

Its partnership with Serbian authorities aims to establish competitive procurement processes and implement regulatory reforms in the energy sector to facilitate such auctions.

The CfD scheme incentivises investment in renewable energy by providing revenue stability to developers.

SECO and EBRD shareholders have funded technical assistance for both the regulatory framework and the auctions.

As a leading institutional investor in Serbia, the EBRD has invested over €9bn through 365 projects.

Serbian Minister of Mining and Energy Dubravka Đedović Handanović said: “The greater capacity from clean sources that we will provide through these auctions will bring increased electricity production in our country, contributing to greater economic growth and an increase in foreign direct investment.

“Increasing green energy’s share of the energy mix is also important for achieving the goals of the green agenda, and its availability is increasingly a requirement of investors for investing in Serbia.

“We expect that investors will again show significant interest in this auction and that the entire quota will be used, both for wind energy and for solar energy, and we hope for even more competitive and lower prices because we expect great competition. This will bring us closer to achieving the goal foreseen in the three-year incentive plan for RES, which envisages 1,300MW of new capacity from RES.”

EBRD’s focus in Serbia includes boosting private-sector competitiveness, transitioning to green energy, and developing sustainable infrastructure.

<!– –>

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.