Miloš Colić, director of the company New Energy Solutions - The first green megawatts from the Pupin wind farm already this year, many more new projects are being prepared

The company New Energy Solutions is a leading company in the sector of development, construction and management of renewable energy projects in Serbia. They started back in 2012, as a small project-oriented company, and after more than a decade of practical experience in the realization of RES projects, they are the only ones in our country to provide development, project management, engineering and operational management services for large energy projects. Their team provides a complete solution on projects from the concept stage, through design, obtaining permits, connection, construction, up to full commissioning and maintenance.

We talked with the director of the company, Miloš Colić, about how the RES market is developing in Serbia, where there is room for improvement, when the construction of the Pupin wind farm is expected to be completed, as well as what the plans of the New Energy Solutions company are for the upcoming period.

How would you rate the current position of Serbia when it comes to renewable energy? Where are we, what are we doing well, what are we lagging behind?

- Serbia is definitely on the right track regarding renewable energy sources. We see that a systematic approach is being taken to enable as many megawatts from RES as possible, that decision-makers have recognized this segment as one of those on which the electric power system of the future should be built, especially considering the trends coming from Europe and the world. Last year we had one bright spot, we were an example in Europe with auctions that brought opportunities for new RES capacities. That process was carried out transparently, digitally and to be commended. In fact, all relevant European officials rated it as an example of good practice that took place in Serbia.

Of course, nothing is perfect. There are still many positions that we need to resolve and discuss. There are no universal solutions that we can simply rewrite, but we need to find adequate solutions for our system. We, both as a company and through the Association of Renewable Energy Sources of Serbia, are very active in communicating with decision-makers, and I expect that in the coming period, when a new government is formed, we will continue to communicate at the same pace, as we have done so far.

Is Serbia successfully "catching up" with the countries that previously started investments in renewable energy sources?

- I think that Serbia is successfully catching up. We had a wave of investments that happened in the period 2017-2019, that`s when the foundations were laid and "know how" was created, actually local "know how", which is very important. Through those projects, we overcame many "mysteries" and risks that existed. We are here, let`s say "walked", now with the auctions we are "learning to ride a bicycle", and all this towards the ultimate goal, which is completely market oriented, which in this gradation would be "driving a car". We are going the right way, we are catching up, some things are a little shorter, based on other people`s experiences, but not to the detriment of the process, which is very important.

A certain legislative framework has been adopted, is there still something missing?

- The legislative framework is set on good foundations, it will be necessary to work it out for some things that are currently unclear, above all when it comes to the storage of electricity. Storing electricity is a liability, which also has a revenue side, but it is still not clear how that revenue side will develop. It is a matter for conversation and discussion in which all interested parties should be involved in order to find the best solution for the system, but also a solution that would have commercial justification. Also, we are now expecting the results of the First Systemic Study of the connection of facilities to the transmission system, where we will see how the new Connection Procedure is implemented, which is of essential importance for the development of RES in Serbia. Depending on the results, we will know whether it is well set or whether there will be a need for additional fine adjustments.

When is the completion of the construction of the Pupin wind park expected?

- The Kostolac wind farm and the Pupin wind farm are, according to my knowledge, the only two wind farms that are currently being built, and our company New Energy Solutions participates in both projects as construction supervisor. We expect Pupin to be fully completed next year, while we expect the first megawatt-hours already this year, when we enter trial operation.

What is the advantage of New Energy Solutions that makes customers choose you?

- New Energy Solutions, within the scope of its business, follows the project from the idea, from the blank sheet of paper, to the management, commissioning and permanent maintenance of those projects. So we close the whole cycle for our partners and clients, because we service all the segments that exist on the project. According to my knowledge, there is no company in Serbia that covers all segments, with such experience and at that level, and even in the region, I think we can count them on the fingers of one hand. We manage a power plant of 104.5 MW, and we also managed a power plant of 155 MW, at one point cumulatively 262.5 MW of power, so we are talking about large projects, and there are not many companies that have such experience.

Will any of your projects participate in the auctions announced for this year?

- It depends on how the auctions will be designed, I would not predetermine any project. When the auctions are announced and we see where our projects are and how "mature" they are, that`s how we`ll decide.

How do you see the RES market in Serbia in the next five years?

- There will be a lot of investments in this sector in the coming period. Maybe not in the way the market imagines it, I think it will be much more restrictive, because the market parameters are different than they were in 2022. I believe that projects that are efficient and optimized will be the ones that will be built, while those that are not, will have difficulties in closing the financing. I also expect that there will be more small solar projects, there is a lot of interest in it and it is relatively easier to finance it. A lot of local businessmen are turning to these investments, which is good. That is the direction in which they should develop, to have smaller projects, with smaller capacities and to seek a safe return on their investment, of course as much as possible.

I think that the market will generally develop in cycles, and a lot will depend on whether the agenda created by the ministry will be followed, which implies that the auctions will take place annually. If that is the case, then systemic projects will be developed in those cycles. I`m not talking about small solar here, they will happen when the market conditions are attractive. When they are not attractive, which will probably happen in a few years, there will be fewer of them. If the conditions are such that, for example, the price of electricity does not keep to the projections we had last year, or if it happens like we had the other day, negative prices in the Netherlands and Germany - then there will not be many of those investments.

What are New Energy Solutions` plans for the next period?

- We are always preparing a lot of new things, at every moment our development sector is working hard and constantly bringing new things. However, what sets New Energy Solutions apart on the market is that we speak publicly only about mature ventures, which have been carefully considered and expertly rounded out, so that we can fully stand behind their realization with our results and resources so far.

On the other hand, it seems to me that there is too much talk in the public about projects that are only at the idea level. 200, 500, 1,000 MW are announced, as if it were some kind of consumer goods, so when demand suddenly jumps, just expand the production line and in a few weeks the final products are on the shelves. And actually, in reality, the serious development of just one megawatt of installed power is not a big challenge, to make 50 MW is already a serious business, and to make 100 MW - this is something that very few private independent companies in the world have managed. We at NES know very well what that means, we know how to recognize expertise and results and we guide ourselves by talking only about certain and significantly advanced projects.

Ivana Žikić

New Energy Solutions d.o.o. Beograd

Obnovljivi izvori energije Srbije

Ministarstvo rudarstva i energetike Republike Srbije

New Energy Solutions

Miloš Colić

OIE

renewable energy sources

Pupin wind farm

Kostolac wind farm

solar power plants

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