Wind farms in Serbia: Profit source for foreign investors

So far, three wind farms have been opened in Serbia, and there are more to come – six to be precise, with one already under construction. As for companies that are financing the construction of these wind farms they Serbian, Italian, Belgian, Russian, American and Arabic.

“So far, three wind farms have been opened in Serbia – one in Kule (9.9 megawatts), ‘La Piccolina’ (6.6 megawatts), and Malibunar (8 megawatts). The plan is to build a wind farm in Kovacica (104.5 MW), Cibuk (158 MW), and in Plandiste (102 MW), the MK Fintel Wind Company has implemented the first stage in building the Kosava wind farm (69 MW). Also, the construction of the Alibunar wind farm (42 MW) is underway”, says Serbian Ministry of Mining and Energy.

If the Serbian power company, EPS is developing renewable energy projects, and is currently preparing to start building a 66-MW-wind farm in Kostolac.

Serbian government’s has set a goal of having at least 27% of the total generated power in the country coming from renewable resources by 2020. Serbia is currently at 23%. In order to assess how close to Europe we are in this respect, we are just going to say that, since the beginning of this year, all trains of the National Railway Company in The Netherlands run on electricity generated by the Dutch wind farms.

Investments in wind farms are quite substantial. In order to build a 1-MW-wind farm, the investment ranges between 1.5 and 2 million EUR. If we calculate the value of what has been built in Serbia so far and the future plans, the value of these investments is around 750 million EUR.

“We are talking about very complex technologies where workforce is not crucial to production process. However, between 400 and 700 workers on average are engaged in building a single wind farm”, the Ministry says.

The biggest wind park is Kosava which is going to be built by the joint Serbian-Italian company, MK Fintel Wind near Vrsac. This company operates under Miodrag Kostic’s MK Group which also owns the first two wind parks ever to be built in Serbia – the one near Kula and Vrsac (La Piccolina – Energobalkan).

The Belgian company, Elicio is funding the construction of the Malibunar wind farm with the help of the IFC, and will soon start building the second one – near Alibunar.

Investitor u Vetropark Malibunar u alibunarskoj opštini je belgijski “Elicio”, koji takođe će uskoro početi izgradnju druge vetroelektrane Alibunar, uz finansijsku pomoć IFC.

Other investors include the Israeli company, Enlight Renewable Energies, Tesla Wind, which operates under a company based in Abu Dhabi, Continental Wind Serbia (of which the current Serbian PM used to be general manager), and NIS Elektrowind (half-owned by Petroleum Industry of Serbia – NIS).

So, why are foreign companies so interested in building wind farms in Serbia?

The answer probably lies in the fact that they, in their capacity of renewable energy producer, will conclude an agreement with EPS about the Serbian state-owned power company buying from them electricity at feed-in tariffs (FITs). Feed-in tariff is a form of an incentive measure designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology.

The renewable energy producers are guaranteed this price for the period of 12 years, and the amount of money they are going to get depends on how much energy the producer generates in the said period.

(Blic, 24.10.2017)


This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published.

scroll to top