Purchasing a “Ready-to-Build” Wind Farm in Serbia: A Step-by-Step Guide
Understand the Regulatory Framework
Before diving into the specifics, familiarize yourself with Serbia’s renewable energy regulations. The Serbian Energy Law, adopted in 2014 and amended throughout 2023, aims to align the country’s energy legislation with the EU’s Third Energy Package. Key regulations governing the renewables sector include:
- Incentive Decree: This decree outlines incentive measures for electricity generation from renewable energy sources (RES) and high-efficiency cogeneration. It guarantees preferential prices (feed-in tariffs) for 12 years under a Power Purchase Agreement (PPA).
- Status Decree: It defines the conditions and procedures for obtaining the status of a privileged power producer, preliminary privileged power producer, and producer from RES.
- PPA Decree: This decree governs the Power Purchase Agreement between the producer and the guaranteed supplier.
Identify Suitable Wind Farm Projects
Research existing wind farm projects in Serbia. Notable operational wind farms include the 104.5MW Kovačica and the 68MW Košava wind farms. Look for projects that are fully operational or in advanced stages of development.
Due Diligence and Legal Assessment
Perform thorough due diligence on potential wind farm projects. Consider the following aspects:
- Land Rights: Ensure that land rights are secured. Verify land ownership, lease agreements, and any necessary easements.
- Permits and Authorizations: Confirm that all essential permits (environmental, construction, grid connection, etc.) are in place. These should cover aspects like noise, environmental impact, and land use.
- Technical Assessment: Evaluate the wind resource, turbine technology, and grid connection feasibility.
Assess the financial viability of the wind farm project. Consider:
- Construction Costs: Estimate the costs of building the wind farm infrastructure.
- Operating Costs: Factor in ongoing maintenance, operation, and management expenses.
- Revenue Generation: Calculate revenue from electricity sales based on feed-in tariffs.
Negotiate and Finalize the Purchase
Once satisfied with due diligence and financial assessments, negotiate the purchase terms with the current owner or developer. Key points include:
- Purchase Price: Agree on a fair price for the wind farm.
- Transfer of Permits: Ensure that all permits and authorizations are transferred to the buyer.
- Legal Documentation: Draft and review legal documents, including the sale and purchase agreement.
After the purchase, take the following steps:
- Project Management: Oversee the construction phase, ensuring compliance with permits and technical specifications.
- Grid Connection: Coordinate with the grid operator for successful grid connection.
- Operational Phase: Manage operations, maintenance, and electricity sales.
Seek Professional Advice
Engage legal, financial, and technical experts to guide you through the process. They can help navigate legal complexities, assess risks, and ensure a smooth acquisition.
Remember that each wind farm project is unique, so adapt these steps to your specific situation. Serbia’s renewable energy sector is evolving, and opportunities abound for investors interested in sustainable energy solutions. Good luck with your wind farm venture!
For detailed steps on the development of a wind farm in Serbia, including insights into the legal framework, necessary approvals, and incentives, CLICK HERE. This guide provides essential information for investors and developers looking to explore the renewable energy sector in Serbia.