March 16 (Renewables Now) - The European Bank for Reconstruction and Development (EBRD) has authorised the provision of EUR 300 million (USD 322m) in financing to Serbia’s state-owned electric utility Elektropriveda Srbije (EPS) to support the decarbonisation of the local power industry.
By improving its liquidity position, EPS will be able to follow the government’s strategy to phase out coal by 2050 and design the regulatory framework for future renewable energy auctions, while also incentivising their roll-out, an official announcement says.
Loan and guarantee agreements were signed on Thursday by representatives of both sides, including Serbia’s respective ministers of energy and finance Dubravka Djedovic and Sinisa Mali.
“In accordance with Serbia’s aspirations to achieve the decarbonisation of the energy sector by 2050, Serbia's energy mix will have to gradually include an increasing share of energy from renewable sources. 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 not possible without sustainable financing, as represented by today's financial package of EUR 300 million signed with the EBRD,” said minister Djedovic.
The bank said in its statement that it has been assisting the Serbian authorities since 2020 with the development of the auctions for renewable energy through a technical assistance programme funded by the Swiss State Secretariat for Economic Affairs (SECO).
(EUR 1.0 = USD 1.072)