Following meticulous planning and coordination, Serbia has officially commenced the enforcement of new legislation governing the connection procedure to the national power grid. The country’s transmission system operator, Elektromreža Srbije (EMS), has responded to the requests of renewable energy investors, initiating agreements on the preparation of grid connection studies (GCA). This action comes in the wake of the passage of the Law on the Use of Renewable Energy Sources in April 2021.
The connection requests involve wind power plants with a collective capacity of 6.1 GW and solar power plants with a planned capacity of 11.4 GW. Notably, the new legislation is designed to regulate all future procedures concerning the connection of renewable energy power plants to the transmission system.
The recently enacted Decree on Conditions of Delivery and Supply of Electricity outlines the updated rules for the grid connection process. The primary objective is to ensure the stability of the energy system and evaluate projects based on their readiness for further development.
Project Development Aligned with Grid Connection
A notable shift in the process now requires investors to support connection study requests with a decision on the preparation of a relevant planning document, in compliance with planning and construction legislation. This change implies that investors have already taken steps to define the energy facility in terms of urban planning, facilitating parallel development in both planning and construction and grid connection.
Prioritizing Energy System Stability
In an effort to prioritize the stability and security of the energy system, the Law on the Use of Renewable Energy Sources allows the transmission system operator to postpone the connection of renewable energy power plants if risks to the safe operation of the power system are detected. Postponement does not apply to power plants using intermittent renewable energy sources if investors meet specific criteria, such as providing new capacity for ancillary services of secondary reserve.
Introduction of Mandatory Bank Guarantee
A significant addition to the new procedure is the mandatory provision of a bank guarantee. Investors are now obligated to submit a guarantee of EUR 25,000 per MW of capacity at the determined connection point, as indicated in the grid connection study. This guarantee must be non-transferable, irrevocable, unconditional, and issued in favor of the transmission system operator.
The transmission system operator will collect the bank guarantee under various circumstances, emphasizing the investor’s commitment to implementing the entire project development within set deadlines.
Ensuring Seriousness in Project Planning
The collection of the bank guarantee serves the purpose of encouraging investors to approach project planning with greater seriousness. By implementing these measures, the transmission system operator aims to prevent an overload of connection requests that are not thoroughly planned and coordinated, both in terms of engineering and finance.
As investors are given a short period to comply with the new procedure, the industry anticipates observing the pace at which new projects will be initiated. The transparent and clear rules for grid connection position Serbia as a robust and suitable investment environment for energy facilities.