Serbia’s energy sector has reached a significant milestone with the completion of its first tokenization project, as AVR Solar Park successfully sold 80% of its AVR Solar Tokens, raising EUR 600,300 out of the EUR 725,000 on offer. This innovative financing model is seen as a potential solution to the challenges posed by unfavorable financing conditions in the Serbian market. The proceeds from the sale of the AVR tokens will be used to fund the expansion of the Saraorci solar power plant.
The Saraorci facility, with a capacity of 9.856 MW, was constructed by Power China and commissioned in May of the previous year. Until recently, it, along with the DeLasol plant, held the title of Serbia’s largest photovoltaic power plant. Marko Đurić, the finance manager at AVR Solar Park, told Balkan Green Energy News that the idea of expanding the plant had been considered even during its initial construction, with plans to increase production by 10-12%. This expansion would raise the plant’s annual output from 15.1 GWh to 16.8 GWh, while maintaining the capacity at 9.856 MW. “We had already invested significant funds in the preparatory works for the expansion, including securing a building permit. Tokenization allowed us to raise the remaining funds needed for the expansion,” Đurić explained.
Despite this progress, Đurić highlighted that the construction of solar power plants in Serbia has slowed due to difficult financing conditions. One of the main obstacles is the challenging financing requirements that investors struggle to meet. Typically, investors are required to secure ten-year power purchase agreements (PPAs) at fixed prices, but in Serbia, PPAs are only signed for a maximum of five years. While auctions can help secure fixed prices, they typically involve fixed income over 15 years, with limited progress being made. Furthermore, financial institutions often require investors to secure 60% of the project’s cost from their own funds—an amount few investors are able to raise.
AVR Solar Park offered 7,250 tokens, each with a nominal value of EUR 100, payable in Serbian dinars (RSD). The token sale began on November 22, 2024, and ended on February 19, 2025. Buyers of the tokens will receive 10% of the principal at the end of each year, in addition to a fixed 6% interest rate. The minimum investment was set at EUR 3,000 per investor. The tokenization process was approved by the Securities Commission of Serbia.
This groundbreaking project represents a new chapter in Serbia’s energy financing landscape, showcasing the potential of tokenization to address financing gaps and support renewable energy expansion in the country.
