Kolubara A solar farm is an announced solar photovoltaic (PV) farm in Lazarevac Urban Municipality, City of Belgrade, Central Serbia, Serbia. Contact online >>
Kolubara A solar farm is an announced solar photovoltaic (PV) farm in Lazarevac Urban Municipality, City of Belgrade, Central Serbia, Serbia.
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While the EU members combined appear to make good progress in the field of developing and expanding photovoltaic power plants, countries of Central and Southeast Europe lag far behind current photovoltaic capacities in the EU
Solar energy is expected to significantly contribute to the European Commission’s REPowerEU plan, which is aimed at quickly reducing the EU''s dependence on Russian fossil fuels and speeding up the green transition. It should also help implement the EU''s Solar Energy Strategy, which was adopted in May last year. EU countries are trying to stimulate demand for these projects, among other things, by changing regulations to increase energy consumption from their own or nearby sources, simplify grid connection procedures, or gradually introduce the obligation to install solar panels on buildings, starting with public and commercial facilities.
Data from the law firm CMS, which operates in more than 40 countries around the world, on new photovoltaic solar power plants in the region of Central and Southeast Europe on the one hand and the EU member states, on the other hand, show a big discrepancy in the utilization of potentials, even within the region of Central and Southeast Europe. For example, the total installed capacity of photovoltaic power plants in four Western Balkan countries – Serbia, North Macedonia, Bosnia and Herzegovina and Montenegro – amounted to 175 MW in 2021.
The total installed capacity of photovoltaic power plants in four Western Balkan countries – Serbia, North Macedonia, Bosnia and Herzegovina and Montenegro – amounted to 175 MW in 2021
In the observed period, the total installed capacity of photovoltaic power plants in these four countries was about half of the capacity installed in Slovenia, which had 367 MW, or in Romania (398 MW). Bulgaria had seven times as much capacity (1,186 MW), Hungary 12 times as much (2,131 MW), and Austria 16 times as much (2,809 MW). On the other hand, even countries like Austria, which is in Europe''s top 10, are trying to increase their capacity and close the huge gap between them and the European leaders in this area, such as Germany (58,728 MW), Italy (22,600 MW), France (14,780 MW) or the Netherlands (14,249 MW).
CMS'' representatives from Serbia, North Macedonia, Slovenia, and Austria, who took part in Belgrade Energy Forum 2023 talked about the main challenges for investing in renewables in the region, as well as challenges and best practices in EU member states.
Investor interest in the renewables sector in Serbia has increased greatly since adopting the country''s first law on renewable energy in 2021. In the two years, requests for connecting solar power plants and wind farms to the grid have exceeded 20 GW, which is 50 times as much compared to the combined installed capacity of all wind farms built in Serbia so far (398 MW) and several hundred times more than the total capacity of existing solar power plants in the country.
Changes to the law on renewable energy sources were adopted in April this year, to eliminate the status quo in deciding on grid connection requests for new renewable energy capacities and better protecting the transmission and distribution system in case of the integration of large-scale intermittent energy sources.
The new regulations changed the rules for conducting auctions for market premiums for renewable energy producers
The new regulations, among other things, changed the rules for conducting auctions for market premiums for renewable energy producers and set capacity limits for prosumers. The guaranteed supplier retains balancing responsibility only for power plants in the incentive scheme, while market-based projects will have to ensure balancing under commercial terms.
Also under the new regulations, the transmission system operator is required to conduct an analysis of the adequacy of electricity production and the transmission system as part of a transmission system development plan, and propose postponement of connection procedures if the adequacy study indicates risks to the safe operation of the transmission grid due to a lack of system balancing reserves.
"That could result in delaying the connection of new capacities to the grid until sufficient balancing reserves are ensured. On the other hand, faster project implementation in these cases can be achieved, among others, by providing additional balancing capacities. The adoption of by-laws is expected, after which it will be possible to see how the new solutions will work in practice,” says Tamara Zejak, senior lawyer at CMS Serbia.
Despite having the second-highest number of sunshine hours in Europe, after Sicily, North Macedonia still hasn''t built a single large-scale solar power plant. In practice, most of the investment has gone towards rooftop solar power plants, whereas investors are primarily interested in developing large-scale solar power plants and wind farms.
Marija Filipovska Jelčić, partner at CMS in North Macedonia, believes the main challenges faced by investors in the country, apart from the vagueness of the law and lack of practice, are grid connection issues and the procedure for land use conversion from agriculture to construction use.
Prospective investors in North Macedonia should check the possibilities for grid connection at the earliest possible stage of the project. Another issue is land use conversion, where there is a lack of practice to convert only the part of the agricultural land needed for a power plant. Instead, it is generally done for the entire plot. In addition, the adoption of spatial plans is under the remit local governments, and the procedure to prepare and adopt these documents can take up to three years, according to Marija Filipovska Jelčić.
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