Serbia: The real costs of RES projects, consumers association against the investors interest

Published on 20. January 2015., AppSerbia

Expensive undertaking: Green electricity will cost us 1, 3 billion EUR. In the next five years, Serbia will have to increase the participation of solar parks and wind farms, as well as other eco-energy sources from 21.2 to 27 per cent.
Serbia is the only country in Europe that doesn’t have a wind farm and hasn’t produced a single green watt so far, although it has all the natural conditions to be a leading producer of electricity from wind power in Europe.
The Europe took care for Serbian wind (košava) not to blow in vain, making a draft, instructing us that in the next five years, if we want to become its family member, we will have to increase the participation of renewable energy sources (RES) from the current 21.2 to even 27 percent, which will cost us around € 1.3 billion.
Regulation
Energy Minister Aleksandar Antic said that the state will fulfill its commitments, despite such high price of green energy.
– European regulations are clear and we have to fulfill them. The construction of wind farms and solar parks is one of the solutions for which foreign investors are interested, and the state has created legislation, which enabled incentives for investment in this area – says Antic.

WPP Plandište and Kovin

Therefore, in the next two to three years the construction of at least five wind farms is planned, with a total value of around one billion euros. The largest of these is Plandište, which is being built by GazpromNeft NIS and a group of private investors. Beside this wind farm, the construction of Čibuk near Kovin has started by the American company “Continental wind”, as well as several facilities for production of electricity from solar energy.
-The Serbian RES market was saturated even before the construction of wind farms started. It is important for Serbia to start with the completion of prepared projects for the construction of wind farms and other facilities in order to provide additional 1,092 MW from renewable sources, by 2020. The state has determined for the price of this electricity to be 9.2 eurocents, for how much it will be bought – was stated from the Association for Wind Energy.
This price, which is four cents more expensive than what EPS charges, will be paid in the next 12 years by the citizens of Serbia through a tax of 4.4 pare per kilowatt hour. This rule was introduced in 2013, when it was decided that EPS will no longer finance renewable energy sources from its own funds.

From the National Organization of consumers’ association (NOPS) say that such a move is inappropriate.
I’m afraid that through subsidized electricity prices, the consumers will actually pay off the debts of investors in green energy. They will repay it all in maximum seven years, and we will pay for their electricity for 12 years. So, they have five years of pure profit and that’s the reason all of them want to build facilities for renewable energy in Serbia because it is very profitable – says Goran Papović from NOPS.