Solar Power Plants Winners at Auctions a Step Away from Shining in Full Glory – All to Begin Working by June

Unlike the wind farms that we wrote about in the previous article, the solar power plants which won market premiums are well on their way toward soon delivering the first green kilowatt-hours.

If the investors’ plans come true, all solar power plants – in Nova Crnja, Kikinda, Knjazevac, Lebane and Cuprija – will start working by June.

Let us remind that the interest of the investors in solar power plants at last year’s auctions was considerably lower than in wind farms. A quota of a total of 25.2 MW was allocated for five solar power plants, which is half the quota that the Ministry of Mining and Energy adopted for solar power plants.

Those who did apply have shown that they are serious, and some are already considering new auctions. However, it should be mentioned that these are projects that are incomparably less demanding than wind farms.

It took a year to two years from the idea to the realization, we have learned from the investors. Most opted for project financing at banks, and what they disagree about is the speed at which the necessary permits are obtained – while some are satisfied with the cooperation with state institutions, others believe that the entire process could be improved, and the procedures digitized. Others still warn that their example does not have to mean that it is the rule for investors at the future auctions, because now there are incomparably more requests that in the previous years.

Despite the differences, one similarity stands out – unlike the wind farms, all the solar power plants that won the first auctions are Serbian-owned.

We bring you an overview of all the winners of the auctions from the list of solar power plants, along with the information about when they are expected to start working.

Auction winner B2 Nova Sun on network by April

With an awarded quota of 8 MW, B2 Nova Sun is the winner of the auctions when it comes to solar power plants. The ranking list also features B2 Sunspot, with an awarded quota of 5.6 MW. A price of EUR 89.7 per MWh is accepted for both solar power plants.

The solar power plant B2 Nova Sun is being built in Nova Crnja, and B2 Sunspot is being built in Kikinda. Both solar power plants have obtained building permits and signed agreements on turnkey construction with the company MT-KOMEX.

Milos Kostic, the director of MT-KOMEX, says in an interview with eKapija that all the equipment for both solar power plants has been bought.

– Over 50% of the works on the solar power plant in Nova Crnja is completed and the mounting of the solar panels has begun. According to our plans and the dynamics of the works, I expect the B2 Nova Sun power plant to be put into operation at the end of March of the beginning of April – notes Kostic.

As he says, the building permit for the solar power plant in Kikinda was obtained in December last year, and the works began in mid-January.

– The solar panels are arriving soon and I expect the works on the power plant to be completed at the end of April, or the beginning of May – Kostic announces and adds that the power plants are partially financed by the investor’s funds, with a bigger amount of banking loans.

Kostic says that he is satisfied with how quickly all the necessary permits were issued, but notes that they started all the procedures on time.

– We started the project at the end of 2021, so slightly over two years will pass from the idea to the realization. As we started all the procedures on time, we went through the regular procedures at the time when there were not that many requests being processed. The volume of the requests is far bigger now – Kostic concludes and adds that the company is already considering the next auctions, which have been announced for this year.



Terra Solar and Novo Selo Power – Test operations ongoing

The second-placed power plants, observed by the awarded quotas, Terra Solar and Novo Selo Power, have gone the furthest with the construction activities. A price of EUR 89.8 per MWh has been accepted for each solar power plant.

The SPP Lebane Novo Selo was finished and put into test operations on November 17 last year, the director general, Nikola Oklobdzija, reveals for eKapija. Of a total of 8 MW, 6.4 MW was offered at the auctions. The power plant was built in Novo Selo in the municipality of Lebane on 11 hectares of land.

The construction of the SPP IMT Knjazevac has been completed as well, and as our interviewee reveals, it has also been put into test operations recently. This is the small power plant on the roof of the IMT Knjazevac factory, with a power of 1.5 MW, of which a capacity of 1.2 MW was offered at the auction at a price of EUR 89.8 per MWh.

As Oklobdzija explains for eKapija, 12 months passed between the idea and the realization for the SPP IMT Knjazevac, and for the SPP Lebane Novo Selo, 13 months passed. The funds were secured through project financing at banks, and our interviewee points out that they are satisfied with the cooperation with local institutions.

– Of course, as investors, we would always like for the process of obtaining the necessary permits to be quicker, but considering the circumstances and the volume and the content of the job, we are very satisfied with the support of the local institutions which worked together with us on these two projects when it comes to the issuing of the necessary permits and decisions – Oklobdzija concludes.

Hiperion Sol – Margisol by June

The Solar Power Plant Margisol, for which Hiperion Sol made the lowest offer at the first auction, EUR 88.65 per megawatt-hour, is in the construction phase. The power plant with an installed power of 4 MW is being built in the territory of the municipality of Cuprija, and as we’ve learned at Hiperion Sol, the works on the construction of a substation and the preparation for the setting up of the structure and the solar panels are being carried out.

– The solar power plant is expected to start working at the end of May or the beginning of June this year – the company says.

The funds have been secured, and two years passed from the idea to the realization. Unlike other participants in the auctions, the company is not satisfied with the speed at which all the necessary permits were obtained.

– Part of the procedures for the obtaining of the necessary permits was done well, that is, the procedures are realized through electronic platforms on portals such as CEOP and Aukcija. The process would be much improved if all other procedures were digitized, so that it can be clearly seen in which phase which request is and when it will be completed – they say at Hiperion Sol.



Winners of first auctions may apply for new auctions

The Ministry of Mining and Energy announced recently that the second round of auctions for a new 400 MW from RES would be organized in 2024. When we asked them whether the second round of auctions would be held in the first half of 2024, we didn’t get an exact answer.

– In line with the Three-Year Auction Plan, the auctions will be held in the current year 2024 – the Ministry of Mining and Energy tells eKapija and adds that the winners at the first auctions may apply: – But only for other power plants, that is, for that part of the power plants for which they haven’t received incentives, whereby the total percentage of the power plant for which incentives are sought may not be higher than 70% of the power plant’s capacity.

Marija Dedic

Ministarstvo rudarstva i energetike Republike Srbije

B2 Nova Sun doo Beograd

B2 Sunspot doo Beograd

MT Komex doo Beograd

Terra solar doo Beograd

Novo Selo Power doo Beograd

Hiperion Sol doo Beograd

Ministry of Mining and Energy

B2 Nova Sun

B2 Sunspot

MT KOMEX

Terra Solar

Novo Selo Power

Hiperion Sol

Margisol

Miloš Kostić

Nikola Oklobdžija

solar power plants

auction winners

auctions for RES

market premiums

solar energy

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RES projects