Serbian 17 municipalites got support from ministry of energy for issuance of licenses for 317 small HPPs

, News Serbia Energy

Serbian Energy Ministry and representatives of 17 municipalities signed understanding memorandums for cooperation in energy licenses’ issuance and agreements with investors that applied on competition for construction of small HPPs on 317 locations.

Energy Minister, Zorana Mihajlovic, said during agreement delivery in Serbian Government and Serbia will have small HPPs 100 MW strong in the next two, two and a half years on the base of this public call, and these plants will produce 400 GWH of electricity yearly.

She said that this will enable Serbia to employ 1000 people more in direct way and several tens thousands workers in indirect way within launching domestic industry, construction and other industry areas.

Mihajlovic said then that small HPPs and privileged electricity producers were discussed in Serbia years before public call, but nothing happened.

-The data that we have more than 1.400 applications for 317 locations shows that investors like when something is clear and when certain criterions exist. It is a sign that investors were waiting on such a moment- she said.

The list of investors that would have construction licenses issues should be made by the mid of June- Mihajlovic said and added that signing the agreement with investors will follow.

Mihajlovic said that the most investors interest were for Tutin municipality, 133 on 57 locations.

She estimated that realization of these projects will contribute to risk decrease in economy development in Serbia and 9 municipalities of 17 which offered construction locations are undeveloped.

-300 million EUR of estimated 500 million EUR should be invested in construction of HPPs on 317 locations- Mihajlovic said.

President of Tutin municipality, Semsudin Kucevic, said that the first step in development of undeveloped areas is the public call for investors.

-This is a brave move to arrange at least one area- Kucevic said and added that Tutin area is ready to offer locations for construction of wind generators 80 MW strong and solar plants.

Competition for issuance of energy permissions and approvals for construction of 317 small HPPs in 17 municipalities was announced on 19 February and it lasted until 5 April. Ministry of Energy expects that the first small HPPs will be on line in 2015 and 2016.