The European Bank for Reconstruction and Development (EBRD) announced on Wednesday that it had signed a loan agreement with Serbia’s finance ministry for $300 million (284 million euros). The loan will provide liquidity to the country’s electricity sector and support its green transition.
The EBRD has announced that it will be providing funds to Elektroprivreda Srbije (EPS), a state-owned power utility, to help with its liquidity squeeze during the winter season.
The project will help the government’s strategy to reduce carbon emissions from the electricity sector, phase out coal by 2050, develop regulations for renewable energy auctions, and encourage their use. This will help ensure both energy security and a sustainable supply of energy.
“We look forward to working with EPS and the Serbian authorities on the ambitious reform programme attached to this loan. In coordination with the IMF and other international financial institutions and donors, we are committed to contributing to the transformation of the energy sector, turning it from a drain into a driver of the country’s green economy transition,” said EBRD Director for the Western Balkans, Matteo Colangeli.
The EBRD noted that while large-scale hydropower plants provide about 30% of Serbia’s energy generation, renewable sources such as wind and solar make up less than 3% and have the potential to help the country develop a substantial new, clean domestic energy supply.
The loan will be provided in two instalments and will be backed by the finance ministry.
