Serbia has great potential for the development of renewable energy. The Government is preparing for accession into the European Union and has committed to harmonize its energy legislation with EU standards. As a future member of the EU, Serbia’s target for the share of renewable energy in the overall energy mix is 27% by 2020. It is in Serbia’s interest to meet its target in the easiest, cleanest, and most importantly, cheapest way possible. Currently the cheapest renewable technology, apart from mini-hydro, without any doubt is wind energy. According to our estimates, to meet the 27% target, Serbia will need the equivalent of about 3, 000 MW of wind energy installed by 2020. This will attract billions of Euros of much needed foreign investment and create tens of thousands of jobs.
In December 2014, the Serbian Parliament passed the new Law on Energy which makes investment into renewable energy more stable and predictable and in June 2016, the Government adopted a set of bylaws (Decree on the stimulation measures, Decree on the privileged power producer status and model Power Purchasing Agreement – PPA) which set the conditions for renewable energy investments in the country. In order to stimulate growth of its nascent wind market, Serbia has designed a euro-denominated feed-in-tariff support scheme. In 2013, the Parliament adopted a decision that the cap on wind in Serbia is raised to 500MW (from previous 450MW). It is worth mentioning that the entire cap has been “reserved” by projects which acquired preliminary privileged power producer status and there are still approximately 800MW of wind projects on the “waiting” list.
CWP entered Serbia very early in 2009, in order to take advantage of the anticipated framework for the development of renewable energy. The company fully permitted the “Čibuk 1” wind farm with total capacity of approximately 160MW. The project acquired preliminary privileged power producer status and has thus reserved a place in the 500MW cap. The project also received Grid Connection Approval from the transmission system operator EMS. With all this in mind, CWP expects the construction of this project to start in the first half of 2017.