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 order to stimulate growth of its nascent wind market, Serbia has designed a euro-denominated feed-in-tariff support scheme that came into force in November 2009. In August 2011, the Parliament also adopted the new Energy Law, which provides a good framework for renewables. However, the Government has failed to pass the necessary secondary legislation/by-laws and has yet to solve a number of other problems that prevent the realization of large-scale renewable energy projects. The failure to adopt secondary legislation means that Serbia still did not determine what the new feed-in-tariffs will be after December 31st, 2012 and it still lacks model Power Purchase Agreement (PPA) which would ensure large-scale investments. Another issue which needs to be addressed soon is the cap of 450 MW which the Serbian Government imposed on wind investments.
CWP entered Serbia very early in 2009, in order to take advantage of the anticipated framework for the development of renewable energy. With 300 MW of wind projects under development, it is one of the few serious developers active in the country, and expects to benefit from its pioneer position there. Unfortunately, the legislative hurdles mentioned above have kept us from fully realizing our investment plans to date.
We remain dedicated to the development of wind power in Serbia once the legislation allows us.