Serbia's first wind turbine, a 1 MW machine, will be installed by the end of the year in the village of Beska, between Belgrade and Novi Sad. The EUR 1.5 million contract for the project was signed in August by representatives of the Beska municipality and Serbian-Austrian company RE Energy. RE Energy's Veljko Jankovic says an additional 11 turbines are planned to eventually establish a 25 MW wind farm. Meanwhile, Dejan Jelic from the Belgrade office of Austrian company MTC has also revealed plans for a 2.5 MW wind turbine to be installed in Indjija in the next six to seven months. He says the EUR 2.5 million project will produce enough electricity for 8000 households. In Jelic's view, Serbia has potential for 500-600 wind turbines. Tomislav Perunicic of Serbian power utility Elektroprivreda Srbije (EPS) agrees. He points to a recent study commissioned by EPS which identifies Midzor, Suva Planina, Vrsacki Breg, Tupiznica, Krepoljin and Deli Jovan among the best areas. In all, the study says there is potential for 1316 MW of wind power that would produce 2.3 TWh, or 10% of domestic consumption. New and renewable energy sources have been given priority in Serbia's energy development strategy and the country's new energy law foresees that authorised independent electricity producers, including wind power generators, will have priority on the electricity market.