EPS is a reliable partner for RES investments

First electricity purchase, balance responsibility and market premium agreements signed

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.