The
joint stock company Elektroprivreda Srbije and the company Vetrozelena
signed the Electricity Purchase and Balance Responsibility Agreement and the
Market Premium Agreement. These are the first agreements based on the auction
conducted by the Ministry of Mining and Energy and represent a turning point in
the development and future increase of Serbia’s RES share.
- Elektroprivreda
Srbije is committed to RES power plant investments, because in this way we are
strengthening our generation portfolio and market position. The agreement signed
with the Vetrozelena wind farm confirms that EPS is a reliable partner
for green energy investors - said Dušan Živković, acting general manager of Elektroprivreda
Srbije - The purchase and balancing price is determined based on market
principles, which will enable EPS to continue its commercialization process, and
bring additional profit. This energy will provide additional power system
operation security, together with the security of supply of both citizens and
the economy. By purchasing RES electricity, EPS also increases its green energy
share. This is essential for energy transition, and certain introduction of
environmental taxes on electricity generation.
Signing
of the said agreements was also attended by the Minister of Mining and Energy, Ms.
Dubravka Đedović Handanović, who pointed out that Vetrozelena is the
first of nine RES power plants under the market premium system and the largest
power plant for which incentives were granted.
- This
wind farm will generate electricity for about 180,000 citizens, at the lowest auction
price of about 64 euros per megawatt-hour, which is almost twice as low as the
current market price. The agreements signed today are an example for other
projects as well, because all the energy generated will be used to supply our
citizens, not for exports - said the minister. - A year ago, there was no
adequate regulatory framework that would encourage wind and solar investments,
as well as the possibility for investors to receive adequate security for
energy balancing. Thanks to the regulatory changes, we successfully conducted
the largest regional auctions, in a process that was fully digitized and
according to all European standards. This will bring more available clean,
renewable energy without compromising our power system. Development of new RES
power plants under the incentives system involves more than one billion euros
of investment, which will have a positive effect on economic growth. Likewise,
the state will achieve additional revenues between 12 and 28 million euros per
year, due to the realized auction prices.
She
said that the market premiums system gives the opportunity to encourage private
investments, but also that it is necessary for EPS to be an active participant
in this process, with investments such as the Kostolac wind farm and solar
power plants. This, as stated by Đedović Handanović, is important to reach as
many green megawatts as possible as quickly as possible, which are important
both for the energy transition and for paying less carbon taxes in the future.
With these investments, Serbia is gradually moving away from the use of fossil
fuels, but not to the detriment of the power system, preserving stability in
both electricity generation and transmission.
After
the construction of the 291 MW Vetrozelena Wind Farm has been completed,
EPS will take over all the electricity generated. According to current
announcements, Vetrozelena should start operating in late 2025. Today’s agreements
were signed by Dušan Živković acting general manager of EPS and Kitao Gao and
Maja Turković, directors of the company Vetrozelena.
