Serbia: Power Purchase Agreement – a problem for all RES developers

, News Serbia Energy

Serbian Wind Energy Association (SEWEA) says that 3-4 investors already have building permits and agreements with banks, but they are waiting for the Power Purchase Agreement for Renewable Energy. In July last year, the Ministry of Energy adopted the Draft Power Purchase Agreement, but it was not acceptable to banks so that investors could not been able to close deals on financing of their projects.

The Power Purchase Agreement is not only our problem, but also the problem of the state. We have to arrange a meeting and finally try to reach an agreement. It is a complex document. The Ministry of Energy has never drafted such an agreement, and seems upset about dealing with this issue. EBRD has proposed to provide a technical support to the Ministry of Energy and engage an international consulting firm that has a vast experience in the field and could negotiate with banks’ lawyers. In this way, the interest of the state and citizens would be best protected and a compromise between all parties would finally be reached. Such an agreement exists in countries around the world. We should adopt this document as soon as possible in order to prevent the energy sector’s exclusive dependence on coal – explains in SEWEA.