Belgrade, October 16, 2024 – In a landmark move toward renewable energy, Serbia has signed a strategic agreement with the Hyundai Engineering-UGT Renewables consortium to build solar power plants with a total capacity of 1,000 MW (1.2 GW nameplate capacity) and battery systems for electricity storage. The project, which also includes 200 MW of batteries with a 400 MWh storage capacity, is a key initiative for Serbia’s energy security and sustainability goals. Once completed, the facilities will be handed over to Elektroprivreda Srbije (EPS), the state power utility.
The signing ceremony took place at the Serbian presidency building and was attended by President Aleksandar Vučić, US Ambassador Christopher Hill, and representatives from Hyundai Engineering and UGT Renewables. The agreement was signed by Dubravka Đedović Handanović, Serbia’s Minister of Mining and Energy, Dušan Živković, EPS General Manager, Adam Cortese, CEO of UGT Renewables, Hyeon-Sung Hong, President and CEO of Hyundai Engineering, and Sang Min Park, Strategic Manager of Hyundai Engineering’s Belgrade branch.
Strategic Energy Security for Serbia
The solar power plants, set to be built across two cities and four municipalities, will significantly boost Serbia’s renewable energy capacity. Locations include Sikole (Negotin/Zaječar) with 461 MW, Jasenica (Negotin/Zaječar) with 70.2 MW, Jablanica (Leskovac/Lebane) with 303 MW, Togočevce (Leskovac/Lebane) with 65.9 MW, Bački Gračac (Odžaci) with 65.9 MW, and Srpska Kuća (Bujanovac) with 35.1 MW.
President Vučić emphasized the importance of this project for Serbia’s future energy security, particularly ahead of Expo 2027. “The solar power plants will generate between 1.6 TWh and 1.7 TWh of electricity annually, which is equivalent to Serbia’s current electricity imports,”** he stated. The country is expected to save €3.6 billion over the next 30 years, or €120 million annually, by reducing its reliance on imported electricity.
Energy Storage and Reduced Taxes
One of the key components of the project is the 200 MW battery storage system, which will enable Serbia to store renewable energy, thus enhancing energy stability. The batteries are expected to partly replace the pumped-storage hydropower plant Bistrica as a fast and efficient solution for energy storage.
Vučić also pointed out that by generating more renewable energy, Serbia would reduce its carbon border taxes when exporting goods to Europe, as green energy production will ensure compliance with EU regulations.
Boost for Local Economies
The solar power project is set to bring significant economic benefits to the local communities in Negotin, Zaječar, Lebane, Blace, Odžaci, and Bujanovac, which are among the poorer municipalities in Serbia. “With 92% of the land being state-owned, there are no legal issues hindering the project’s progress,” Vučić confirmed, adding that financing terms for the project could be finalized by December 2024.
Partnership for Long-Term Growth
Adam Cortese, CEO of UGT Renewables, described the partnership with Serbia as a “strategic investment” that goes beyond electricity production, envisioning long-term economic growth, job creation, and strengthened ties between Serbia and the United States. The project will also reduce Serbia’s CO2 emissions by 1.36 million tons per year.
“This project is not just about technological advancement; it’s about investing in Serbia’s future,” Cortese said, announcing that hundreds of millions of dollars would be directly injected into the Serbian economy through local partnerships for the construction of the solar power plants and batteries.
Green Energy Leadership in Europe
For Hyundai Engineering, this project represents one of the largest green energy initiatives in Europe. Hyeon-Sung Hong, CEO of Hyundai Engineering, highlighted the company’s experience with large-scale projects and its expanding role in sustainable energy. “This project will drastically change Serbia’s energy portfolio, and we hope it will encourage other American and Korean companies to invest in Serbia,” Hong noted.
The agreement marks a significant step in Serbia’s journey towards energy independence and sustainability, with the project poised to transform the country’s energy landscape while contributing to global efforts to combat climate change.
For more updates on Serbia’s renewable energy initiatives, follow the latest announcements from the Government of Serbia.
