Serbia’s first renewable energy auction for 400 MW of wind power and 50 MW of solar photovoltaics (PV) will be supported through a contract for difference (CfD) for 15 years. Its launch follows a technical cooperation project with the Ministry of Mining and Energy, led by the European Bank for Reconstruction and Development (EBRD) and supported by the government of Switzerland via a grant from the Swiss State Secretariat for Economic Affairs (SECO).

The CfD scheme encourages the market integration of renewables, as developers receive support in line with market prices in addition to income from the sale of electricity achieved in the power market. The auctions represent the first round of the Serbian government’s three-year plan, which envisages the total allocation of premiums for 1,000 MW for wind power generation capacity and 300 MW for solar PV.

Prior to the launch of the auction, amendments to the Law on the Use of Renewable Energy Sources and accompanying secondary legislation, such as the balancing decree and the feed-in premium decree, were adopted to enable faster integration of new renewables capacity in the Serbian power system and market, while preserving the reliability and stability of the system’s operation, reports the EBRD.

To date, the EBRD has invested €8.5bn in the country, with €400mn already approved this year, including €300mn in the energy sector to help Serbia’s energy security and decarbonisation. It is currently considering a further loan of €62mn to Elektroprivreda Srbije, the national power utility, for the rehabilitation of the Vlasinske hydropower plant. The project is expected to be co-financed by a €15.4mn grant from the European Union via the Western Balkans Investment Framework.

The EBRD is also active in ‘just transition’ work in Serbia, to support the employment of workers who are currently engaged in coal-related industries.