Bank guarantees for Renewable projects
Serbia has recently taken a significant step towards enhancing its Renewable Energy capacity. Investors have submitted bank guarantees totalling 4,000 MW for various Renewable Energy projects, including solar, wind, and hydropower. This development follows a new regulation introduced in October 2023, requiring a bank guarantee of €25,000 per MW of capacity. The aim is to expedite the grid connection approval process, which had been delayed for about two years.
Streamlining grid connections
The new regulation was implemented to clear the backlog of grid connection requests. Since the adoption of the Law on the Use of Renewable Energy Sources in 2021, Serbia’s transmission system operator, Elektromreža Srbije (EMS), received requests to connect nearly 20 GW of new power plants. However, the network's current capacity could only accommodate 5,800 MW. The recent submission of bank guarantees for 28 facilities marks a critical step in addressing this issue.
Project details and deadlines
Investors in 51 Renewable Energy projects had deadlines on June 24 and July 1 to submit their bank guarantees. This included 24 solar projects with a combined capacity of 3,278.5 MW, 18 wind power plants totalling 3,239.4 MW, one hybrid power plant with a capacity of 150 MW, and the Bistrica pumped-storage hydropower project with a proposed capacity of 656 MW. Following the submission, investors have two months to sign connection agreements with EMS.
Future opportunities and regulations
If investors fail to sign the connection agreement within the stipulated period, they must reapply. The next application interval starts on September 1, with a deadline for complete applications set for August 1. By adhering to these new guidelines, Serbia aims to ensure the timely development of Renewable Energy projects, contributing to its sustainable energy goals and enhancing its energy security.
Serbia’s Renewable Energy commitment
Serbia’s commitment to Renewable Energy is evident through these recent developments. By introducing stringent regulations and ensuring compliance through bank guarantees, the country is set to make significant progress in its Green Energy transition. These efforts will not only boost Serbia’s Renewable Energy capacity but also contribute to a more sustainable future.
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