EBRD and Erste greenlight funding for new windfarm in Serbia

Green Forum
The European Bank for Reconstruction and Development (EBRD), in collaboration with Erste Group Bank AG and its local subsidiary, Erste Bank a.d. Novi Sad (Erste), has approved a financing package totaling €91.4 million for the establishment of a new wind farm in Serbia.

This wind farm, to be developed by Enlight Renewable Energy (Enlight), signifies a significant stride towards diversifying Serbia's energy portfolio.

Under this financing arrangement, the EBRD and Erste will extend parallel loans of €45.7 million each, inclusive of associated debt service reserve facilities. Enlight's local subsidiary will utilize these funds to undertake the development, construction, and operation of the 94-megawatt (MW) wind farm, named in honor of Mihajlo Pupin, a revered Serbian scientist. Dubbed the Pupin project, it is slated to commence commercial operations in the latter half of 2025. This initiative extends from the existing Kovacica (Blacksmith) wind farm in Vojvodina, owned by Enlight and previously financed by the same consortium in 2017.

Once operational, the Pupin wind farm is projected to supply clean energy to over 40,000 households, akin to a medium-sized city like Zrenjanin. This venture will play a pivotal role in reducing Serbia's power sector's carbon footprint and facilitating its transition towards a green economy. Amidst the prevailing dominance of coal in Serbia's electricity generation, this financing comes at a critical juncture, urging the nation to diversify its energy sources and address long-term structural energy challenges.

The project was supported under Serbia's inaugural renewable energy auction for wind capacity held in 2023, with a contract-for-difference awarded for 400 MW. Subsequent auctions, each for 300 MW of wind capacity, are anticipated in 2024 and 2025, alongside similar initiatives for solar power plants. Spearheaded with technical and policy assistance from the EBRD and funded by the Swiss State Secretariat for Economic Affairs (SECO), this scheme fosters the integration of renewables into the market, aligning developer support with prevailing market prices and electricity sales income.

Enlight Renewable Energy specializes in developing, financing, constructing, owning, and operating utility-scale renewable energy projects across the United States, Israel, and nine European countries. Erste Group Bank AG, a key financial services provider in Central and Eastern Europe, boasts over 16 million customers and total assets exceeding €337 billion.

Green Forum  |  15 July, 2024 at 11:00 AM
Green Forum  |  15 July, 2024 at 10:00 AM