Serbia announced its second renewable energy tender for 424.8 MW of wind and solar projects, supported by a contracts-for-difference (CfD) program for 15 years.

The auction is for 300 MW of wind and 124.8 MW of solar projects.

The bidders are allowed to quote a maximum tariff of €79 (~$83.54)/MWh for wind and €72 (~$76.135)/MWh for solar. The maximum capacity that can be bid for solar projects is 105 MW.

The last date for submitting the bids is February 25, 2025.

The launch of the CfD program follows technical cooperation between the Ministry of Mining and Energy and the European Bank for Reconstruction and Development (EBRD), supported by the Swiss government via a grant from the Swiss State Secretariat for Economic Affairs (SECO).

The CfD program will incentivize investment in renewable energy through the revenue stability it provides to developers. SECO and EBRD shareholders have funded this technical assistance, encompassing the broader regulatory framework for renewables and the auctions.

To enable equal treatment of smaller producers and their projects compared to large renewable energy generators, bidders can only bid for a maximum of 105 MW capacity for one or more projects. Additionally, the offered capacity of the power project cannot exceed the prescribed quota.

This tender is the second round in Serbia’s three-year plan to develop 1.3 GW of renewable energy capacity, of which 1 GW is wind and 300 MW is solar.

In June 2023, Serbia announced the first tender to develop 400 MW of wind and 50 MW of solar projects.

In the auction, conducted in August of last year, the country secured 715 MW of renewable energy projects, and more than €1.1 billion (~$1.16 billion) of investments were secured.

In May 2024, the European Parliament approved the Net-Zero Industry Act to enhance net-zero technology production within the European Union. The Act targets Europe to produce 40% of its net-zero technology needs by 2030 and capture 15% of the global market for these technologies.