- Project to accelerate wind and solar power, strengthen decarbonisation and governance
- The EBRD has approved a financing package of €300 million to help support Serbia’s electricity sector.
The EBRD has approved a financing package of €300 million to help support Serbia’s electricity sector. The funds will be channelled to the national electricity utility Elektropriveda Srbije (EPS) to improve its liquidity position. The project will support the government’s strategy to decarbonise the electricity sector, phase out coal by 2050, develop the regulatory framework to launch renewable energy auctions and incentivise their roll-out, and ensure both energy security and sustainability of supply.
The signing of the loan and guarantee agreements in Belgrade today was attended by Minister of Energy Dubravka Djedovic, Minister of Finance Sinisa Mali and EPS General Manager Miroslav Tomašević. On behalf of the EBRD, the agreements were signed by Matteo Colangeli, Director, Regional Head of the Western Balkans, and Grzegorz Zieliński, Director, Head of Energy Europe.
International donors, multi-donor funds, or the EBRD are expected to provide financing for technical cooperation projects.
Dubravka Djedovic, the Minister of Energy, said: “By Serbia’s aspirations to achieve the decarbonisation of the energy sector by 2050, Serbia’s energy mix will have to include an increasing share of energy from renewable sources gradually. Strategic decisions lay ahead of us, as well as many reforms which will need to be implemented by state-owned companies in the energy sector. Achieving these goals is impossible without sustainable financing, as represented by today’s financial package of €300 million signed with the EBRD. We will also use the funds to more easily overcome the energy crisis we face, affecting the world. The security of energy supply for citizens and the economy remains a priority of the Ministry of Mining and Energy and the government of the Republic of Serbia.”
Matteo Colangeli, EBRD Director for the Western Balkans, said: “We look forward to working with EPS and the Serbian authorities on the ambitious reform programme attached to this loan. In coordination with the International Monetary Fund and other international financial institutions and donors, we are committed to transforming the energy sector from a drain into a driver of the country’s green economy transition.” Also, Grzegorz Zieliński, EBRD Director for Energy Europe, said: “Energy security and the green energy transition are the key challenges faced by power utilities across Europe. Through this transaction, the EBRD is pleased to assist both EPS and the entire energy sector of Serbia in overcoming these urgent challenges.”
Since 2020, the EBRD has been working with the Serbian authorities and industry stakeholders to develop renewable energy auctions through a sizeable technical assistance programme funded by the Swiss State Secretariat for Economic Affairs (SECO). No part of the EBRD loan will be used for the company’s existing coal assets. The financing will be provided in two tranches and guaranteed by the Ministry of Finance on behalf of the Serbian state.