Italy and Serbia agree on renewable power feed-in tariffs
Serbia and Italy have agreed feed-in tariffs for electricity produced from renewable sources in the Balkan country, Serbia's Infrastructure Ministry said. The deal will guarantee Serbia the price of EUR 155 ($ 215.4) per MW hour and be signed in Rome by Serbia's Infrastructure Minister Milutin Mrkonjic and his Italian counterparts, the ministry said.
"The Italian government will... pay one of highest feed-in tariffs in the European Union," a statement said. "With this, Serbia's budget will secure significant revenues."
Serbia and Italy signed wider energy deals in 2009 and earlier this year worth a total EUR 1.1 bn ($ 1.5 bn) to boost the share of renewables in their energy output and alleviate shortages.
Serbia's state-run utility EPS and Italy's company Seci Energia will jointly build three hydropower plants worth about EUR 819 mm and with a combined capacity of 365 MW on the Drina river, just outside Bosnia, by 2014. The 2009 deal envisions construction worth EUR 300 mm to build 10 small hydropower plants on the Ibar river in Serbia's southwest with a combined capacity of 103.2 MW.
The electricity will be exported to Italy via Montenegro and an underwater cable across the Adriatic Sea, the ministry said.
The plants on the Drina and Ibar rivers will help Italy derive 17 % of its power consumption from renewable sources by 2020.