June 5 (SeeNews) - The Green for Growth Fund (GGF) said on Tuesday it is providing financing for the construction of the 42 MW Alibunar and the 158 MW Cibuk 1 wind farms in Serbia.
GGF is contributing 13.5 million euro to the Alibunar project through an International Finance Corporation (IFC) B loan and 18.5 million euro ($21.7 million) to the Cibuk 1 wind farm via B lending to the European Bank for Reconstruction and Development (EBRD), who together with the IFC led the structuring of the transaction, GGF said in a statement.
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"We are proud to support the growth of the renewable energy sector in Serbia at its inception. The fund fosters growth of renewable energy in Southeast Europe and this is a trailblazing example for the region. We are pleased to support the ambitions of the Serbian government in working towards a sustainable energy supply," the chairman of GGF, Christopher Knowles, said.
The Alibunar and Cibuk wind farms are among the first renewable energy utility-scale projects in the country, paving the way for the opening up of the renewable energy sector in Serbia. Through these two projects, the GGF will help to reduce greenhouse gas emissions by approximately 50,000 metric tonnes per year, the fund said in the statement.
The projects mark the rollout of wind farms as a primary renewable energy source for Serbia and are the result of a combined effort between the nation’s government, project sponsors and in particular the development finance community, to create a bankable renewable energy framework for the country.
The Alibunar wind farm is being developed by Elicio NV, a Belgian renewable energy company, near the town of Alibunar in northeastern Serbia. The wind farm comprises 21 turbines from the German wind turbine manufacturer Senvion.
Cibuk 1 is being built by Vetroelektrane Balkana d.o.o., owned by Tesla Wind, a joint venture between Masdar, a renewable energy company based in Abu Dhabi, DEG German Investment and Development Corporation, and Taaleri Group, a Finnish asset management company. It will comprise 57 wind turbines from General Electric.
The GGF invests in measures designed to cut energy use and CO2 emissions by a minimum of 20% in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly, primarily through the contribution of senior debt, in renewable energy projects.
Serbia has committed to satisfying 27% of its energy consumption from renewable energy sources by 2020.
($ = 0.853916 euro)