June 14 (SeeNews) - Serbia launched its first renewables auction whereby 400 MW of windpower projects and 50 MW of solar PV projects will be supported through a contract for difference for 15 years, the European Bank for Reconstruction and Development (EBRD) said on Wednesday.
The auctions represent the first round of a three-year plan, which envisages the total allocation of premiums for 1,000 MW for windpower generation capacity and 300 MW for solar PV, as Serbia aims to decarbonise its energy sector, the EBRD said in a press release.
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The launch follows a technical cooperation project with the country's energy ministry, led by the EBRD and supported by the government of Switzerland via a grant from the Swiss State Secretariat for Economic Affairs (SECO).
"We are proud to support Serbia in its ambition to decarbonise the power sector and their ambitious targets to accelerate the integration of renewable energy sources through open and transparent auctions," said EBRD head of the Western Balkans, Matteo Colangeli.
"It is estimated that with the successful realisation of the auctions, state-owned power utility Elektroprivreda Srbije (EPS) will earn more than 3 million euro ($3.2 million) annually, taking into account the relevant market prices," Serbia's energy minister, Dubravka Djedovic, said in a press release.
The government-defined maximum price that a renewable energy producer can offer at an auction is 105 euro per MWh for wind power plants, and 90 euro per MWh for solar power plants. Investors who offer the lowest price in relation to the maximum defined price will have the advantage of receiving incentives which is expected to reduce electricity costs.
($ = 0.9253 euro)