Serbia gets loan for renewable energy power plants

Serbia loan renewable energy

The government of Serbia will guarantee a EUR 307 million in loan to invest in new renewable energy power plants and overhaul coal-fired power plants.

A Serbian government representative said that guarantees are necessary to continue the implementation of major infrastructure projects.

About BAM 300 million (around EUR 153.5 million) is planned for the construction of the Bistrica, Janjina, and Buk Bijela hydro power plants.

According to the RTRS portal, finance minister Zora Vidović said that the amount of BAM 800 million (about EUR 409.3 million). This means that the Serbian government’s exposure won’t exceed 15% of GDP in the current year.

Government ministries in Serbia had called for the issuance of loan guarantees primarily in the energy sector and in particular renewable energy power. That would include the construction of plants to produce power from renewable energy, an investment of BAM 300 million (about EUR 153.5 million). The money would be used to construct the Bistrica, Janjina, and Buk Bijela hydro power plants.

About BAM 100 million (EUR 51.2 million) is to be allocated to construct thermal power plants (TPPs) and BAM 200 million (about EUR 102.3 million) for the construction of solar power plants and the Trusina wind farm, as stated in the Serbian government’s 2019 investment plan.

Serbian energy minister Petar Đokić, recently said in an interview with Balkan Green Energy News that the construction of the Buk Bijela hydro power plant will be implemented under the turnkey Engineering, Procurement and Construction (EPC) model, and that the project is ready for implementation.

In March this year, the Serbian government canceled a concession agreement with Eol Prvi for the construction of the Trusina wind farm in Nevesinje, which had been issued back in 2012.

The Kovačica wind farm launched the trial run at the beginning of the year and has been fully operational since July 12. The other 4 operational wind farms in Serbia are the 500 kW Devreč 1 (2012), the 9.9 MW Kula (2016), the 6.6 MW La Piccolina (2016), and the 8 MW Alibunar (2018). About 370 MW more of wind farms are under construction or in the trial production phase in the country.