Over 60 Serbian Renewable Power Plants Lose Privileged Producer Status

More than 60 renewable energy power plants in Serbia, with a combined capacity exceeding 36 megawatts, have lost their status as privileged electricity producers since 2022. This change, detailed in a report by the Association of Renewable Energy Sources (OIE) of Serbia, marks a significant shift for the country's energy sector.

These "privileged producer" statuses, established in 2009 with the introduction of feed-in tariffs, guaranteed companies the ability to sell electricity generated from renewable sources at fixed, preferential prices for 12 years. As these contracts expire, many pioneering renewable energy projects are facing significant market challenges.

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After the expiration of feed-in tariffs, some projects stopped operating, while others survived despite market challenges.

The report indicates that the loss of this status represents a substantial financial relief for Elektroprivreda Srbije, the state-owned power utility, as it no longer has to purchase electricity from these plants at guaranteed rates. Among the affected facilities, small hydropower plants are the most numerous, with 28 units totaling approximately 23 MW. They are followed by 27 solar power plants (3.6 MW), two biogas plants (1.6 MW), and one wind project (0.5 MW).

The experiences of these power plants after their feed-in tariffs expired are varied. Some projects have continued to operate by seeking new business models, while others, once at the forefront of renewable energy in Serbia, have been forced to shut down. Small producers, in particular, struggle to survive without ongoing systemic support. Compounding these issues, producers now face additional bureaucratic hurdles, requiring new permits and urban planning approvals, even as the distribution system operator has temporarily halted new connection requests for plants over 400 kW due to exceeding national energy needs.

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small producers find it difficult to survive without systemic support.