Quota for market premium for wind power plants set out by the Serbian Government

Law on Utilization of Renewable Energy Sources (“Official gazette of the RS” no. 40/2021, “Law on RES”) adopted in April 2021, introduced two types of incentives for electric energy generation from renewable energy sources: i) market premium, and ii) feed-in tariffs.

While feed-in tariffs shall be granted only for demonstrative projects and small projects, the market premium, which represents the additional amount to the price for each sold kWh on the market, whereby the amount of premium will be determined through auctions, will become the dominant incentive.

When publishing an invitation for auction, the Ministry of Mining and Energy shall announce, inter alia, available quotas for each type of power plant in the auction. In this respect, the Government of the Republic of Serbia adopted on 10 November 2021 Regulation on Quotas in Market Premium System for Wind Power Plants (“Official gazette of the RS” no. 107/2021).

Pursuant to the said regulation, the quota for wind power plants is 400 MW for power plants with an installed power of 3 MW or more.

Having in mind that Law on RES recognizes, apart from the wind power plant, various other power plants (hydro, solar, biogas, etc.) suitable for obtaining the status of privileged producer, it is to be expected that the Government of the Republic of Serbia will further adopt new regulations in which quotas for other power plants will be determined for the purpose of auctions.

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