Government looking for a strategic partner to build 1 GW of solar plants

The Serbian government has instigated a procedure to select a strategic partner to develop a total of 1 GW of solar power plants and at least 200 MW of battery storage capacities.

The power plants and batteries are to be handed over to state power utility Elektroprivreda Srbije (EPS) under a turn-key contract two years following the construction.

The government’s decision, based on the Renewable Energy Law, envisages the selection of a strategic partner to build, but not manage or maintain, large-scale “self-balanced” solar power plants with energy storage batteries.

The project would be carried out through strategic partnership and public financing. Its purpose is to enable the country to meet the energy transition goals and international obligations regarding renewables, but also tackle the energy crisis, eliminate the need for imports, ensure long-term stability of supply for consumers, offset EPS’ reduced production capacity, and meet the growing need for capacities capable of providing balancing and system services.

The strategic partner will be required to secure letters of intent concerning financing for the project, enabling Serbia to draw a loan with a long repayment term, of at least 18 years.

The partner will also be required to select optimal locations for the construction of the solar power plants and battery capacities, prepare all necessary documentation, and design, procure equipment for, and build the power plants.

The partner will operate the solar power plants and batteries for two years, during which period it will be required to train the EPS team to continue to operate the facilities. After that period, the partner will hand over the facilities to EPS.

The selected partner will also have the obligation to build transition and distribution capacities, if necessary.

EPS will act as both the owner and investor in the project, according to the government’s decision, and the project should be completed within four to five years.

(B92, 09.05.2023)

This post is also available in: Italiano

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