UGT Renewables, Hyundai Engineering opening new era in US-Serbian relations with giant solar-battery project

UGT Renewables and Hyundai Engineering are at the forefront of the new energy cooperation agreement between Serbia and the United States, Chief Executive Officer of UGT Renewables Adam Cortese told Balkan Green Energy News. The consortium’s strategic partnership with Serbia for six photovoltaic plants of 1.2 GW in total peak capacity, with batteries, is worth EUR 1.6 billion, he revealed.

“We view Serbia as a jumping-off point for our energy transition efforts here in the Balkans,” Cortese underscored in an interview and added that UGT Renewables is bringing “the who’s who of the industry” with its projects, including Tesla, Nextracker and Hanwha Qcells.

The Government of Serbia has sent a bill to parliament to confirm the agreement with the US on strategic cooperation in the field of energy. The cornerstone project is already underway – through a strategic partnership, the consortium of Miami-based UGT Renewables and South Korean company Hyundai Engineering Co. (HEC) is tasked with building six solar power plants with batteries for state-owned power utility Elektroprivreda Srbije (EPS).

It is one of the biggest investments in renewable energy in Europe at the moment. The solar power plants are envisaged with 1.2 GW in nameplate capacity, translating to 1 GW in terms of grid connections. Under the deal, the battery energy storage systems will have a capability of up to 200 MW and a two-hour capacity – 400 MWh.

UGTR and HEC are tasked with installing the photovoltaic and battery facilities in 2028

The consortium needs to complete the project in 2028. After signing the strategic partnership last week, UGT Renewables is hitting the ground running.

„We have a consortium of supply partners that come with us wherever we go. They are tier 1 suppliers and manufacturers, which helps us develop the industry-best projects across the world. And quickly – that’s a very important factor, something that the Government of Serbia has asked of us repeatedly to deliver,“ CEO Adam Cortese points out. He said the agreement is worth EUR 1.6 billion.

Everyone is keenly aware of the need and urgency to make sure the project is successful, which both governments have pointed out, Cortese noted. “We are the people to do it,“ he stressed.

UGT Renewables is developing infrastructure-scale renewable energy projects

UGT Renewables, headquartered in Florida, has projects for more than 20 GW in total around the world. It has offices in the United Arab Emirates, Angola, Nigeria, Serbia and India. In Eastern Europe and Central Asia, the company is working with Hyundai Engineering as an „extremely recognizable name,“ Cortese explained.

It selects strategic partners depending on the region and the proportions of an investment.

„In Africa we’re working with Sterling and Wilson, the largest solar EPC in the world. A smaller engineering, procurement and construction firm may work for a smaller project, but at this point in our company trajectory, we are bringing infrastructure-scale projects. So we need the six-hundred-pound gorilla to come with us,“ Cortese added.

The head of UGT Renewables, or UGTR, said Tesla, Shoals Technologies and Nextracker are among its heavyweight suppliers of photovoltaics equipment, batteries and software. „As for solar modules, we are working with Hanwha Qcells. So it’s really the who’s who of the industry,“ Cortese asserted.

UGTR, HEC to install largest single-site PV plant in Balkans

The future Sikole solar power plant in eastern Serbia requires a particular highlight, as it would currently be the largest in the Balkans. The site for the system of 555 MW in peak capacity and a 461 MW grid connection is between Negotin and Zaječar in the country’s east.

The company said it would contract with major electromechanical and civil engineering companies in Serbia as well as small and medium-sized local enterprises.

The Sikole solar power plant, to be built under the strategic partnership, would be the biggest in the Balkans at this moment

Nevertheless, the strategic partnership in the country is the beginning of something bigger, according to the CEO of UGT Renewables.

“We view Serbia as a jumping-off point for our energy transition efforts here in the Balkans. We think that there’s a lot of opportunity in neighboring countries such as Montenegro and North Macedonia. We view ourselves at the forefront of the strategic energy cooperation agreement with Serbia. We’re hoping to open doors not only for other US renewable energy companies, but for other US industries across the board. We see quite a few opportunities for US companies in Serbia in the tech sector and manufacturing,” Cortese added.

Solar-battery project would save EUR 2.7 billion in emission costs at current rates

Cortese noted that energy-intensive companies have environmental, social and corporate governance (ESG) requirements to consume renewable energy. “Carbon savings – that’s our job! With 1.36 million tons of carbon reduction per annum, the economic impact of the project here in Serbia cannot be understated,” he stressed.

Given the current rates of carbon dioxide emission costs in the European Union, the consortium’s solar power plants and battery energy storage systems would save EUR 2.7 billion over their 30-year lifespan in today’s euros, not counting for inflation.

It means the project would help Serbia offset the burden of the incoming carbon tariff within the EU’s Carbon Border Adjustment Mechanism (CBAM) and support the export industry. Cortese said the PV plants would generate 1.8 TWh in the first year of operation and compared it with the country’s annual power imports of 1 TWh to 1.5 TWh. UGTR’s calculations show that the total savings from eliminating electricity imports are roughly EUR 3.6 billion in today’s euros and excluding inflation.

Government of Serbia to guarantee for loans to EPS

Turning to the country’s regulations, Cortese acknowledged the constantly changing environment and pointed to the government’s efforts to deploy renewables. “We’ve had no problem integrating our model into the Serbian framework,” he said.

The project will be financed with loans to EPS, guaranteed by the government, Cortese added.

“It’s a sovereign financing structure as it as it is everywhere we go. We are using Swedish financing via the Swedish Export Credit Agency – EKN and Swedish Export Credit Corporation – SEK, which have helped us in other projects before,” he said. SEK provides the financing and EKN is responsible for loan guarantees.

Other components are envisaged to be financed by the Export-Import Bank of the United States (US Exim Bank) and Korea Trade Insurance Corporation (K-Sure), for the content coming from these countries. Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, is also likely to participate in the endeavor.

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