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The European Bank for Reconstruction and Development (EBRD) has announced that it has signed a $300 million (€284 million) loan agreement with Serbia's finance ministry to provide liquidity to the country's electricity sector and support its "green" transition , BalkanEnigeer.com learned from Seenews.com.
The funds will be used by the state-owned energy company Elektroprivreda Srbije (EPS), which during the winter season faced a liquidity deficit due to the import of significant amounts of electricity. The loan will be provided in two tranches and will be guaranteed by the Ministry of Finance.
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 drive their deployment and ensure both energy security and sustainability of supply.
While large hydropower plants provide around 30% of Serbia's energy production, renewable sources such as wind and solar make up less than 3% and have the potential to help the country develop significant new, clean domestic energy supplies.
Photo source: canva.com