€80 million loan to Elektroprivreda Srbije to finance modernisation of equipment, improve environmental standards

The EBRD is helping Serbia take a further step towards cleaner energy production by co-financing a modernisation programme at the country’s largest electricity generating company.

The Bank’s Board of Directors has approved a €80 million loan to the state-owned power company Elektroprivreda Srbije (EPS) which will significantly improve the quality of the lignite it relies upon while reducing fuel wastage through the purchase of a modern coal management system and new mining equipment.

The new investment will lead to more stable and efficient operation and reduced maintenance costs. And by raising lignite quality, it will eliminate the need to add heavy fuel oil to the mix.

Based on existing operations and production levels, these improvements will lead to savings of around 250,000 tonnes of coal for the same electricity generation. Such savings correspond to an annual estimated reduction in carbon dioxide emissions of more than 200,000 tonnes.

Parallel financing of €74 million is being considered by the German development bank, KfW.

In addition, the EBRD and EPS are working to improve the company’s overall environmental performance and reduce pollution, in line with the current energy strategy adopted by the Serbian parliament.

In Serbia to date, the EBRD has committed around €2.5 billion to more than 150 projects, with a total value of €6 billion.