Construction of wind farm at Zajecar worth EUR 100 million uncertain – Investor opts out, city waiting for new quotas

The construction of a EUR 100 million wind farm at Zajecar, which representatives of the city and the Vision Group Balkan – Vision Sword consortium signed a preliminary agreement on back in early March 2016, is likely not to happen any time soon.

As the investors, the Czech company Vision Group 21, confirmed for eKapija, they have opted out of the project because Zajecar was unable to secure the quotas for a wind park of sufficient power.

Zajecar had a quota available which enabled the construction of a wind farm with 36 MW of power, whereas the requirement of the Czech company and its partners was for the project to be expanded to a minimum of 60 MW of installed power, for which, as they say, the technology was secured last year, as was the financial construction of the entire project.

As Barbora Bartokova explained for eKapija, that is why Vision Group 21 opted out of the project, but she added that there was “readiness to reactivate the project if Zajecar secures the minimum required power of 60 MW”. Furthermore, as she emphasized, the local self-government can realize the project with a new investor if it finds one.

Mayor Velimir Ognjenovic nevertheless hopes that the wind farm will be raised. He says for eKapija, however, that he can't discuss deadlines and plans for the time being due to objective obstacles.

As Ognjenovic explains, Zajecar had a quota allowing for a 36.4 MW park and was waiting for an additional 24 MW. However, that didn't happen, and the said quota of 36.4 MW was allocated to another local-self government in the meantime, he adds.

Due to this, Zajecar is now expecting a new invitation, which will most probably take place this May, when they will apply at the Ministry of Energy for a 60 MW quota with an aim of opening a tender for a partner in this project afterwards, Ognjenovic said.

This investment, which was estimated at EUR 100 million in March 2016, would be very important for Zajecar, which would secure the payment of around 5% of the total annual income from the wind farm to the city budget by signing the contract.

The mayor says that this would mean an additional EUR 700-800,000 for the city budget annually, to be invested in new LED street lighting and other local projects.

Nevertheless, until then, the wind generators at Vrska Cuka and potential revenues from them remain only as a plan.

Grad Zaječar

Ministarstvo rudarstva i energetike Republike Srbije

Vision Group 21 Czeck Republic

Vision Group Balkan

Vision Sword

wind farm Zajecar

wind farm Vrska Cuka

quotas for electricity production from renewable sources of energy

electricity production from renewable sources of energy

renewable sources of energy

RSE

wind farm

wind generator

Barbora Bartokova

Vladimir Ognjanovic