Following the adoption of the Decree on Feed-in Tariffs in 2009, companies in Serbia were, for the first time, given the opportunity to sell electricity generated from renewable sources at guaranteed, privileged prices. The status of a privileged producer lasted for 12 years, and a large number of pioneering RES projects have lost their privileged status.
Since 2022, more than 60 power plants across Serbia have lost their status as privileged electricity producers. Their total installed capacity exceeds 36 megawatts, representing significant financial relief for Elektroprivreda Srbije, as the energy from these facilities is no longer purchased at guaranteed prices.
Among the plants that lost privileged status, the majority are small hydropower plants — 28 in total, with a combined installed capacity of around 23 MW. They are followed by 27 solar power plants with an installed capacity of 3.6 MW. Two biogas plants (1.6 MW) also lost their status, as well as the only wind project outside the incentive system — Devreč 1 in Tutin, with a capacity of 0.5 MW.
Examples vary widely, from plants owned by schools, monasteries, and the Clinical Center of Serbia, to private investors. Individual installed capacities also differ — the smallest is a solar plant of just 3.2 kW, owned by 11. April, while the largest are the mini hydropower plants Međuvršje in Čačak (7 MW) and Ovčar Banja in Čačak (4.5 MW), operating within the Drina-Lim hydropower system.
What happens to power plants once they leave the incentive system? Where do they place the produced energy? Do market prices enable sustainable operation without subsidies?
These are some of the questions addressed by the RES Serbia portal.
Research by the Association Renewable Energy Sources of Serbia shows that, after the expiration of feed-in tariffs, some projects ceased operation, while others managed to survive despite market challenges.
The analysis covers only plants whose contracts with the guaranteed supplier expired, excluding facilities whose contracts were terminated at the request of owners or whose companies are undergoing liquidation.
Kostić: Electricity Prices Extremely Low
After the expiration of feed-in tariffs, the solar plant Solaris 1 (999 kW) in Kladovo continued operating on the open market. Miloš Kostić, director of MT-KOMEX, a regular member of the RES Serbia Association, explained that on March 18 an agreement was signed with private electricity trader Green Balancing Group.
– We are no longer in the system of privileged tariffs but sell energy at prices formed on the SEEPEX exchange – said Kostić.
The plant, commissioned in 2013, was a pioneering venture in Serbia.
– The status of privileged producer lasted 12 years and enabled the investment to pay off within seven to eight years – Kostić noted.
He added that panel replacement or repowering is not planned, but some inverters were replaced after ten years to refresh energy conversion.
On whether market prices allow sustainable business without subsidies, Kostić responded that circumstances are not particularly favorable for renewable producers, as electricity prices are currently very low.
He also pointed to the introduction of the CBAM mechanism on January 1, 2026, which makes electricity from the Western Balkans less attractive for export.
– The application of the CO₂ tax complicates the placement of our energy abroad – Kostić emphasized.
He added that battery storage will become an essential part of future projects, as it enables optimization of electricity sales and increases investment profitability.
During the incentive period, Solaris 1 produced a total of 15.3 GWh of electricity.
Some Small Solar Plants Did Not Survive
Unlike larger projects, some small solar plants did not continue operating after leaving the incentive system.
Ledinak Solar Dobri Do, a 30 kW plant in Kuršumlija, produced just under 500 MWh of energy over 12 years, but was shut down after incentives ended.
Due to inverter problems, the facility installed at the secondary school in Varvarin, one of the first to set up a solar plant is also no longer operational.
Owners say production would have been higher if infrastructure had been more reliable, processes simpler, and power outages less frequent in underdeveloped parts of Serbia.
Many Small Hydropower Plants Lost Privileged Status
Mini hydropower plants played a significant role in the early stages of energy transition, but the loss of privileged status revealed their vulnerability on the market. Some, such as Radošićska Reka and Bovan, exited the incentive system back in 2022.
The largest facilities in this group, Međuvršje in Čačak (7 MW) and Ovčar Banja in Čačak (4.5 MW), operating within the Drina-Lim hydropower system, lost their privileged producer status in January this year.
Suspension of New Connection Conditions for RES Plants Above 400 kW
Experiences of plants after the expiration of feed-in tariffs show that small producers struggle to survive without systemic support. While some projects continue operating and seek new business models, certain pioneers have shut down.
An additional challenge for producers is that, alongside standard technical documentation, new permits and urban planning conditions are now required. At the same time, the issuance of new connection conditions for renewable energy plants with capacities above 400 kW has been temporarily suspended. Elektrodistribucija Srbije stated that the number of connection requests currently exceeds national energy needs, and a new adequacy analysis of production and consumption is awaited.
Auctions Instead of Feed-in Tariffs
With legislative changes in 2021, Serbia replaced the feed-in tariff system with auctions and market premiums.
Nevertheless, the last plants that acquired privileged producer status under the old system will continue to benefit from incentives for several more years.
