Wind power projects Alibunar 1 and Alibunar 2, majority-owned by SANY Renewable Energy, a leading global wind turbine manufacturer based in China, have ranked second and third, respectively, in Serbia’s latest renewable energy auction for market premiums in the wind power segment. The auction was organized by the Ministry of Mining and Energy as part of the country’s ongoing efforts to boost renewable energy production.
Alibunar 1, with a capacity of 96.6 MW, and Alibunar 2, with a capacity of 71.4 MW, were recently acquired by SANY Renewable Energy. The projects were originally developed by WV-International, a Dutch renewable energy firm known for its pioneering role in Serbia’s green energy sector, in collaboration with Norwegian developer Emergy.
Following their success in the auction, the company announced that preparations for the construction of both wind farms are underway, with work set to commence in the fourth quarter of 2025. The wind farms will feature SANY Renewable Energy’s S168 wind turbines, each with a capacity of 4.2 MW.
Serbia’s EPS to offtake entire output via 15-year PPA
Upon completion of construction and grid connection, the electricity generated by Alibunar 1 and Alibunar 2 will be sold to Serbia’s state-owned power utility Elektroprivreda Srbije (EPS) under a previously signed 15-year power purchase agreement (PPA). The two wind farms are expected to generate approximately 480 GWh of electricity annually, significantly contributing to Serbia’s transition towards a greener energy mix.
WV-International and Emergy remain committed to expanding their renewable energy footprint in Serbia. The partners are developing an additional portfolio of wind farms totaling 571 MW under the Banat project complex. Furthermore, they are advancing plans for a 125 MW hybrid power plant that will integrate wind and solar energy.
SANY Renewable Energy was listed on Shanghai Stock Exchange in 2022
SANY Renewable Energy Co., Ltd was founded in 2008. It is committed to becoming the global leader in the field of clean energy equipment supply and services.
It was officially listed and traded on the STAR Market of the Shanghai Stock Exchange on June 22, 2022, with the stock code 688349. SANY Renewable Energy’s market share has increased significantly and the company ranked among the top 7 global wind power manufacturers in 2023.
Serbia’s transmission system operator Elektromreža Srbije received two grid connection applications for battery energy storage systems. They are the first energy storage projects in the country.
Investments in battery energy storage systems (BESS) is ramping up around the world and Serbia is now making its first steps. Annual installations have increased more than 12 times in just four years, projects for an overall 11.5 GWh were announced in only three European countries, and last year China and Germany increased their battery capacity by 130% and 50%, respectively.
The grid connection applications in Serbia were submitted by Green BESS KV, for a 100 MW project of the same name, and MKBDP Energy, for its 50 MW project Skladište električne energije Jagodina.
Applications were submitted by Green BESS KV and MKBDP Energy
Green BESS is a special purpose vehicle (SPV) of Radiant Partners, while MKBDP Energy is part of the MK Group. Of note, there are other energy storage projects in the pipeline, but none of them are as far ahead as them. Both parent companies are registered in Serbia.
MK Group is very active in the renewable energy sector in the country. It put its Krivača wind farm into operation last year.
Serbia’s TSO Elektromreža Srbije (EMS) confirmed to Balkan Green Energy News that it has received the first applications for signing the agreement on the preparation of the connection study for standalone storage.
MKBDP Energy applied for a 50 MW facility located close to Jagodina. The site for Green BESS KV of 100 MW facility is near Kraljevo, according to EMS. Both cities are in the central part of the country.
After signing such an agreement, the TSO starts work on the study, which lasts 120 days.
The start of construction is scheduled for the first half of 2026
According to Green BESS KV, it is an SPV established by consulting firm Radiant Partners, a developer of large-scale renewable energy projects. Radiant Partners is developing one of the largest solar power projects in Serbia – Noćaj, near Sremska Mitrovica, with a capacity of 180 MW, while new solar and wind projects are in the initial phase.
“Our vision is focused on sustainability, innovation, and energy independence. The 100 MW / 200 MWh battery storage facility represents a significant step in the modernization of Serbia’s energy system, contributing to environmental protection and bringing numerous economic benefits,” CEO of Radiant Partners Nikola Ćeha told Balkan Green Energy News.
Batteries are a good market opportunity
In the next phase, the construction of a storage facility after obtaining all the permits, Radina Partners plans to cooperate with Chinese partners. The project is located in Kraljevo, in the vicinity of the TS Kraljevo 3 transformer station. The start of works is scheduled for the first half of 2026.
Asked about motives for the pioneering step, Ćeha explains there are currently no battery storage facilities in Serbia and that interest in renewable energy projects is growing.
“We see a project for supporting existing and future renewable power plants as a market opportunity, given their variability in daily production,” he stated.
Battery storage increases flexibility in the market
He stressed the importance of large-scale BESS units in Serbia, saying they are crucial for balancing production with consumption, in a situation where renewable energy production is increasing. Batteries stabilize the power grid and enable the storage of excess energy and its use in times of higher consumption or lower production.
In his words, batteries increase flexibility in the market because of their quick response to changes in energy consumption and prices, which opens up opportunities for trade and cost optimization.
Such a project attracts investments and encourages the development of energy infrastructure, which contributes to market competitiveness and technological progress, Ćeha said.
Israeli company Nofar Energy said its photovoltaic park in northern Serbia of 27 MW in peak capacity began delivering electricity to the grid. The project consists of two adjacent units, Ada1 and Ada2, connected to the distribution grid.
After installing Romania’s largest solar power plant in a partnership, Nofar Energy now operates the largest photovoltaic park in Serbia as well. The Israel-based company, which nine months ago started building it the municipality of Ada in the country’s north, said the facility is online.
Notably, the solar park at the Utrine site consists of two units, Ada1 and Ada2. They have connection points of just under 10 MW each and operate within Serbia’s power distribution network. There is no PV system yet on the Balkan country’s transmission grid.
Project is worth EUR 25 million
The solar park spans 30 hectares on a 116-hectare plot, planned for the solar park’s expansion. Nofar Energy has launched the projects, worth EUR 25 million in total, via its subsidiaries Forest Energy and Energia Solis. The company estimated annual output at 33.2 GWh.
Turkish company Girişim Elektrik is the contractor.
Nofar Energy said its portfolio of operational and projects under construction amounts to 2.4 GW of solar power and 1.2 GWh of energy storage. The company secured an overall EUR 110 million loan in August in Romania for PV plants Ghimpați, which it started building in the meantime, and Iepurești. The two locations in the Iepurești area in Giurgiu county are envisaged for a combined 315 MW in peak capacity.
Serbia planning to add 177 MW in connection capacity through auction mechanism, 1 GW within strategic partnership
The Ministry of Mining and Energy of Serbia said in November that the country hosted 166 MW in solar power capacity. Last month, at its second round of wind and solar power auctions, it allocated the entire PV quota of 124.8 MW in grid connection capacity. The five winning projects are for 176.7 MW overall, also in alternating current or AC. They get contracts for difference (CfDs) and power purchase agreements (PPAs).
A strategic partnership is underway with Hyundai Engineering and UGT Renewables for a group of solar power plants of 1.2 GW in overall peak capacity. It translates to 1 GW in transmission grid terms. The companies are also tasked with installing battery energy storage systems with at least 200 MW in combined capability and a maximum of 400 MWh in capacity.
The first tokenization in Serbia’s energy sector has been completed, with AVR Solar Park selling 80% of AVR Solar Tokens, worth EUR 600,300, out of EUR 725,000 on offer. The company emphasized that this innovative financing model has the potential to address the issue of unfavorable financing conditions in the Serbian market.
The recepits from the sale of AVR tokens will finance the expansion of the Saraorci solar power plant. The facility, with a capacity of 9,856 MW, was built by Power China and commissioned in May last year. Until a few days ago, along with the DeLasol plant, it was the largest photovoltaic plant in Serbia.
Marko Đurić, who is in charge of finance at AVR Solar Park, told Balkan Green Energy News that even during the construction of Saraorci power plant, there was an idea to expand it and increase production by 10-12%. The annual output would rise from 15.1 GWh to 16.8 GWh, with the capacity remaining at 9.856 MW.
Đurić: The investors are struggling to meet financing requirements
“Our company had already invested significant funds in the preparatory works for the expansion. Among other things, we had already secured a building permit. With tokenization, we tried to raise the rest of the funding needed for the expansion,” he said, noting that the expansion has been completed.
According to Đurić, the construction of solar power plants in Serbia has slowed considerably. The demanding financing requirements, which investors find difficult to meet, are among the main contributors. In most cases, companies are required to have ten-year power purchase agreements (PPAs) at a fixed price.
However, PPAs on the Serbian market are signed for a maximum of five years, he noted.
In his words, a fixed price can be achieved through auctions, but this implies fixed income over 15 years, and there is no progress. Also, financial institutions cannot back a project unless the investors secure 60% of the cost from their own funds, which very few can do, according to Đurić.
Token buyers receive 6% interest
AVR Solar Park offered 7,250 tokens with a nominal value of EUR 100 apiece, payable in RSD. The initial offering of AVR Solar Tokens started on November 22, 2024, and ended on February 19.
Buyers of the token acquired the right to receive 10% of the principal at the end of each year and a fixed 6% interest. The minimum investment amount per investor was EUR 3,000. The tokenization was approved by the Securities Commission. The table below shows an example of an investment in 100 AVR Solar Tokens.
Digital tokens make it possible to bypass the bank as the chief intermediary in financing, and AVR Solar Park sees this as a benefit, especially for those who want to invest their money in a specific project – institutional investors or individual, small investors.
Đurić: the opportunity to be part of the green transition
The company has opted for tokenization as a way of financing, primarily because it enables transparency. “By purchasing AVR Solar Tokens, you not only ensure a stable financial return, but you also get the opportunity to be part of the green transition in the energy sector and thereby contribute to reducing pollution in our country and on our planet,” Đurić stressed.
Compared to other investment opportunities, investors in tokens could benefit from the fact that tokens are denominated in euros.
Also, the 6% interest is more than what any bank or bond offers, especially for such a long period, Đurić asserted. Another benefit for investors is the simplicity of investing in tokens as it can be done “from the comfort of one’s bed.”
How are token buyers protected?
Solar power plant Saraorci (photo: AVR Solar Park)
Đurić said there are various measures to reduce the risk for investors. First and foremost, the solar plant is fully operational, generating income.
“The return for investors is guaranteed based on a 10-year PPA signed with a licensed electricity trader. It could be annexed to add the output from the expanded facility. This contract is the biggest guarantee for the interest payments, enabling steady income,” Đurić pointed out.
In addition, the project also includes additional security measures. For example, if production is lower than projected, the contractor Boffetti Balcan, a subsidiary of Italy-based Boffetti SPA, is required to compensate for the difference. The project is also fully insured.
The construction of a new solar power plant is underway
AVR Solar Park said tokenization was a pilot project to test the market. The company also sees it as a crucial step toward the broader use of tokenization in Serbia and the region.
According to Đurić, the company aims to finance much larger projects in the future. Anyone who invested in this pilot project will have an advantage in investing in the next ones, he added.
The firm is currently building the Zvečka solar power plant, with a capacity of 9.95 MW, in the municipality of Obrenovac. The plan is to put it into operation by June 2026.
Serbia’s transmission system operator Elektromreža Srbije signed a contract for the construction of a two-system 400 kV transmission line from the Obrenovac substation to the Bajina Bašta substation.
The power line from the Obrenovac substation to the Bajina Bašta substation is part of the third section of the Trans-Balkan Corridor for the transmission of electricity, a project of national and regional significance, TSO Elektromreža Srbija (EMS) said.
The Trans-Balkan Corridor connects Romania, Serbia, Bosnia and Herzegovina, Montenegro and Italy.
Apart from the transmission line, the third section comprises equipping two switchyards in the Obrenovac substation and upgrading the Bajina Bašta substation to 400 kV.
The job was awarded to Kodar Energomotaža at an international tender
The transmission line will be 109 kilometers long. The start of construction is planned for April, while the completion is expected in 2027.
The project is financed by EMS, a donation from the Western Balkans Investment Framework (WBIF), and a loan from Germany’s KfW Development Bank.
The EUR 71 million contract was signed by EMS CEO Jelena Matejić and Mladen Žujković, the representative of Kodar Energomontaža, the contractor. The company was selected after a complex international tender, according to Serbia’s TSO.
The first section of the Trans-Balkan Corridor, from Pančevo to the Romanian border, was completed and put online in December 2017.
The second section was finished in June 2022. It consisted of transmission lines between Kragujevac and Kraljevo and upgrading the substations in the two cities.
Matejić: Serbia is a crucial electricity hub in this part of Europe
The corridor plan also has a fourth section. It envisages a double 400 kV power line between the substations in Bajina Bašta in Serbia, Višegrad in Bosnia and Herzegovina and Pljevlja in Montenegro.
“The Trans-Balkan electricity transmission corridor is certainly one of the most important infrastructure projects to safeguard a stable supply of electricity in our country. It will also enable the integration of the electricity market and position Serbia as a crucial electricity hub in this part of Europe,” Matejić stressed.
The importance of the Trans-Balkan Corridor was demonstrated recently by the commissioning of the second system within the transmission link between Romania and Serbia. It increased the cross-border transmission capacity by 80% – from 500 MW to 900 MW.
Cypriot Minister of Finance Makis Keravnos said the Great Sea Interconnector (GSI) project still faces very serious political obstacles. He highlighted the pressure from Turkey, alongside the financing disputes with Greece regarding the EU-backed bilateral investment to lay an undersea electricity cable that would connect the two countries.
Following a second incident this month when Turkish navy intimidated ships researching the seabed, Minister of Finance of Cyprus Makis Keravnos expressed doubt in the feasibility of the Great Sea Interconnector (GSI). It is a project to connect his country’s electricity system with Greece’s through Crete, by laying a cable under the sea.
“I can’t say I’m optimistic, especially when there are still very serious political obstacles, namely those posed by Turkey,” the official said, as quoted by domestic media. Namely, Turkish corvette TCG Bartın has approached Ievoli Relume and NG Worker, Italian vessels conducting research for the interconnection, in international waters just north of Crete.
GSI investment concerns now have to be addressed
Nevertheless, a recent due diligence study by a hired foreign consultancy showed the draft bilateral deal heavily favors Greece’s Independent Power Transmission Operator (IPTO or, in Greek, Admie). The authors warned of an “unnecessary additional layer of risks for any equity investors in GSI.”
Keravnos said the document confirms his concerns and that they must be discussed. While the two sides are working to overcome their financing dispute, the project is suffering delays, increasing the risk of cancellation.
Keravnos said in October that the total cost could well surpass EUR 2 billion. The Crete-Cyprus part is substantially leaning on funding from the European Union. The idea was to later extend the interconnector to Israel.
Turkey has been obstructing both GSI surveys and hydrocarbon exploration around Cyprus. There were several incidents involving gunboats.
Meanwhile, Cyprus is struggling to maintain the stability of its isolated electricity system. Oil-fired power plants are increasingly working near their upper limits in peak hours. Conversely, storage capacities, flexibility systems and digital controls are needed for mitigating the pressure on the grid at times of weather-induced jumps in the production of wind and solar power, but also sharp drops.
It is the only noninterconnected country in the European Union. Moreover, Cyprus has no access to natural gas yet.
GSI was formerly known as EuroAsia Interconnector.
