Four projects successfully met the 400 MW quota in Serbia’s initial wind power auction, whereas the competitive bidding for contracts for different for solar power experienced a significant lack of interest, resulting in only 11.6 MW being awarded out of the 50 MW that was available.
The Ministry of Mining and Energy, on its newly launched website, has announced its plans to distribute the 400 MW quota among four wind projects with valid applications, out of a total of eight. However, due to high demand, the segment was oversubscribed by 29.8%, with one bid being disqualified. Similarly, in the solar power auction, only 11.6 MW was granted out of the available 50 MW.
The competitive bidding processes were the first ever conducted in Serbia. The winners are entitled to sign 15-year contracts for difference (CFDs) at the agreed-upon price.
The price ceilings for wind power and photovoltaics were set at EUR 105 per MWh and EUR 90 per MWh, respectively. Unfortunately, due to the low turnout, the lowest bid for photovoltaics ended up being higher than the one for wind power, amounting to EUR 88.65 per MWh compared to EUR 64.48 per MWh.
It should be noted that Serbian authorities and regulators have been engaged in a lively discussion regarding the potential integration of additional capacity from wind and solar power plants into the transmission system. It is worth mentioning that any photovoltaic project participating in the auction process would need to have a connection capacity of 10 MW or higher in order to be connected to the transmission system.
Serbia’s transmission system operator Elektromreža Srbije (EMS) currently has a waiting list for wind power capacity of 9.63 GW and utility-scale photovoltaics of 11.4 GW. These figures have increased slightly from the previous numbers of 8.7 GW and 10.3 GW, respectively, recorded in late May. Additionally, there are two other projects in progress, totaling 200 MW, which involve a combination of wind and solar power.
The winning bidders will be given a period of seven days to accept the awarded market premiums, while all bidders will have a generous timeframe of 30 days to initiate a dispute if needed.
The Vetrozelena project, with a capacity of 291 MW, was granted the privilege of receiving a market premium for selling 210 MW of its output at a price of EUR 64.48 per MWh. This price was the most competitive among all the participants in the wind power auction. It is worth mentioning that participants had the opportunity to qualify for the CfD scheme with a capacity ranging between 70% and 100% of their projects.
PowerChina currently holds a majority stake of 51% following a recent agreement with CWP Europe. The project firm has kindly submitted a connection request for 300 MW for the site located in Pančevo.
Next, we have the Pupin project by Enlight K2-Wind, offering a total capacity of 68 MW out of 95.5 MW, at a rate of EUR 68.88 per MWh. This facility is scheduled to be installed in Kovačica.
Čibuk 2, which is currently being developed by a consortium led by Masdar, successfully secured the full 108.5 MW it had initially offered from a larger project of 150 MW, at a rate of EUR 73.7 per MWh. The remaining portion of 13.5 MW was awarded to the national company Crni vrh Power. This company had expressed interest in a contract for 105 MW out of the total 150 MW and made a bid of EUR 79 per MWh.
MK Group and Fintel Energija, a subsidiary of Fintel Energia Group from Italy, unfortunately did not succeed in the bidding process for their four joint projects. They submitted a bid of EUR 84 per MWh, but it was not accepted. Additionally, their project Košava, which was planned at 47.5 MW, did not meet the necessary requirements for participation. It is worth noting that the same owner already operates a wind farm with the same name, boasting a capacity of 68 MW. In the second phase for Košava, they have requested a connection for a slightly higher capacity of 68.4 MW.
As for solar power projects, Hiperion Sol submitted the lowest offer in the auction, EUR 88.65 per MWh, for an entire 4 MW facility. The only other participant that passed was Terra Solar, with two bids of EUR 98.8 per MWh each.
It applied for 6.4 MW out of 8 MW of its investment Lebane – Novo Selo, and for 1.2 MW out of 1.5 MW in the planned IMT Knjaževac endeavor. Four participants were disqualified.
