The EBRD has approved a € 300-million loan to help support Serbia’s electricity sector, i.e. improving the liquidity of the Serbian power provider, the Electric Power Industry of Serbia (EPS).
The funds will go towards supporting the government’s strategy to decarbonise the electricity sector, phase out coal by 2050, develop the regulatory framework for the launch of renewable energy auctions and incentivise their roll-out, and ensure both energy security and sustainability of supply.
The signing of the loan and guarantee agreements in Belgrade today was attended by Minister of Energy Dubravka Djedovic, Minister of Finance Sinisa Mali and EPS General Manager Miroslav Tomašević. On behalf of the EBRD, the agreements were signed by Matteo Colangeli, Director, Regional Head of the Western Balkans, and Grzegorz Zieliński, Director, Head of Energy Europe.
The EBRD will also provide project-related technical cooperation to EPS, including support for the development of a decarbonisation strategy and action plan; reforms to strengthen the company’s corporate governance and managerial capacity; the implementation of climate risk reporting in line with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations; and programmes for corporate and human capital development, including the retraining of workers currently employed in the coal industry, promoting female talent and attracting highly skilled employees.
Dubravka Djedovic, the Serbian Minister of Energy, said on the occasion: “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 €300 million signed with the EBRD. We will also use the funds to more easily overcome the energy crisis we are facing, which affects the entire world. The security of energy supply for citizens and the economy remains a priority of the Ministry of Mining and Energy, and for the government of the Republic of Serbia.”
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