Construction is to start this year on two 200 MW wind farms in Serbia at a cost of over EUR 600 million, says mining and energy minister Petar Skundric. Both will be built in the north-east of the country, one at Kovin and the second at Vrsac. Serbia has the potential to annually produce 2.3 TWh of electricity from wind energy, about 7% of current demand. So far, the ministry has issued 20 wind farm construction licences. Although Serbia produces negligible amounts of electricity from renewables, excluding large hydro, Skundric is confident that over the next five to six years this will increase to 12%. The government is to introduce a premium purchase price for electricity from "privileged power producers" who will also be guaranteed access to the grid. A law clarifying who these producers will be is expected later this year and by July parliament is to vote on a mandated purchase price for wind proposed at EUR 0.115/kWh.