Serbia has marked a significant milestone in its renewable energy sector with the provision of bank guarantees for 28 facilities, totaling 4,000 MW in capacity. These guarantees, mandated at EUR 25,000 per MW under a regulation introduced in October 2023, aim to streamline the grid connection approval process, which has faced delays according to investors.
Following the enactment of the Law on the Use of Renewable Energy Sources in 2021, Serbia’s transmission system operator (TSO), Elektromreža Srbije (EMS), received requests to connect nearly 20 GW of new power plants, far exceeding the network’s capacity of 5,800 MW as of September last year.
By July 1, EMS confirmed receipt of guarantees for 28 facilities, predominantly power plants, excluding projects under ongoing review. A list of these facilities, which includes one substation and multiple power plants, is slated for publication on EMS’s website by week’s end, as reported by Balkan Green Energy News.
Investors who have secured bank guarantees now have a two-month window to finalize connection agreements with EMS. A total of 51 facilities, meeting conditions set forth in the directive on electricity delivery and supply, are eligible to proceed with connection study agreements. This comprises 24 solar projects totaling 3,278.5 MW, 18 wind power plants with 3,239.4 MW combined capacity, and one 150 MW hybrid power plant.
Notably, the pumped-storage hydropower project Bistrica, proposed at 656 MW capacity, is among those advancing, alongside four other hydropower plants and three substations.
Under the regulation, failure to submit a bank guarantee within 60 days of the connection study nullifies the study, indicating abandonment of the connection process by the applicant.
Looking ahead, investors who miss the initial connection agreement deadline may reapply from September 1, requiring a complete application by August 1 to proceed with the connection study contract.
By adhering to these regulatory steps, investors commit to project timelines, ensuring compliance with EMS guidelines, with provisions for EMS to enforce guarantees under specified circumstances outlined in the new regulation.
