Will the auctions create an investment environment in the field of renewable energy sources?

Photo: BDK Lawyers

RES Association Serbia and BDK Lawyers’ Office organized a panel discussion entitled “Towards Auctions: Regulatory Conditions, Capacities, Obstacles and Risks as Creators of the Investment Environment in the Field of Renewable Energy Sources” where panelists had the opportunity to present their views on the auction system and the recently adopted Law on Renewable Energy Sources.

The President of the Council of the Energy Agency of the Republic of Serbia, Dejan Popović, was the first to address the meeting, emphasizing that the Agency has adopted the Methodology for Determining the Maximum Purchase Price of Electricity and the Methodology for Determining the Maximum Feed-in Tariff for Electricity. be the volume of auctions because it depends on the energy policy of the state.

Auctions are procedures prescribed by law where electricity producers compete with the offers of the lowest market premium, and the Ministry of Mining and Energy announced the first auctions at the end of 2021. The panelists agreed that the new Law on Renewable Energy Sources creates a favorable environment for the development of green energy, and they expect that this will attract a larger number of investors as early as next year.

The director of MT-KOMEX, Miloš Kostić, pointed out that such laws and bylaws have been long awaited, since the first law with bylaws on renewable energy sources was adopted in 2009, and the decree was valid until the end of 2012.

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“Within that first decree, we managed to build a solar power plant with a capacity of 2 MW, which has been successfully producing electricity for eight years. “Since then, until now, we have built power plants on the facilities of industrial plants only for the needs of our own consumption, and most often it was companies that wanted to be environmentally aware, but they were all very small capacities,” said Kostic.

Now the situation is different – the regulatory framework has been established, bylaws will be completed by the end of the year, and the drastic increase in the price of electricity has led companies to decide to invest in RES faster.

“The price per MWh on the electricity market is currently 200 euros, and Serbia imports 780 MWh, so we all pay that expensive price. This was reflected in the industry, so only this year we built power plants as many as for the previous ten. We are currently working on various industrial plants whose power will be close to 6 MW, and the largest power plant we have built is located in Novi Sad and will soon be put into operation, “said the director of MT-KOMEX.

Photo-illustration: Pixabay

He adds that the new opportunity to become “prosumers” (buyers-producers of electricity), has contributed to the popularization of salt energy in Serbia, and there are many who would build their solar power plant on the ground and are intensively searching for suitable land that will be close transmission line.

However, when it comes to the connection to the electricity distribution network, the project manager in the Electric Network of Serbia, Dejana Popović Milovanović, points out that the consideration of that issue is not among the priorities of investors.

“Through ten years of experience, we have realized that investors primarily look at the development of their project, and the connection is remembered at some point when the timeframe for that realization is short, and then the pressure on EMS increases further. The right thing for investors is to harmonize the dynamics of the realization of the development of the production facility and the connection, “said Popović Milovanović.

Milena Maglovski

Source: Energetski portal Srbije by www.energetskiportal.rs.

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