June 21, 2024
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Serbia to earn 240 to 600 million euros from new wind farms

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The Ministry of Mining and Energy said that, during the 15-year duration of the contract awarded to the winners of the wind power plant auction, Serbia is set to generate between 240 and 600 million euros based solely on the difference between the achieved and market electricity prices.

The average price achieved at the wind auction is approximately 68 euros/MWh, while the current market price for electricity stands at around 110 euros/MWh. Given that the auction winners pay the state the difference between the market and offered price, according to all credible long-term electricity price projections, Serbia will generate revenue between 240 and even 600 million euros over the next 15 years just based on this difference.

According to current projections, this will amount to around 60 million euros by 2026. The auction winners committed to investing over a billion euros in various parts of Serbia over the next two to three years, which is extremely important for the construction industry and the development of municipalities where the projects will be implemented, and for the entire Serbian economy. The auctions were conducted using a model applied in Germany and the United Kingdom, where the most renewable capacity has been built in the last 10 years.

The auction winners include companies from Israel, China, the United States, UAE, Finland, some of which are listed on global stock exchanges, as well as from Serbia. The Ministry noted that the auctioning process was efficient with technical support from EBRD, transparent, and digitized in a way that made it impossible to influence the selection of winners in any way, as the software ranks the best bids and most favorable bidders on its own.

These are the first auctions within the three-year support scheme adopted by the Serbian Government, which envisages awarding market premiums for 1,300 MW for renewable energy capacity over the next three years.

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