February 3 (SeeNews) - Serbian diversified conglomerate MK Group and Slovenian investment fund Alfi Green Energy are investing 155 million euro ($169.4 million) in the Krivaca wind farm, in eastern Serbia, Erste Group, which structured the financing transaction, said on Friday.
The wind farm will have a capacity of 106 MW and will produce 310 GWh of electricity annually, Erste Group said in a press release.
Construction began at the end of last year. The wind farm is expected to be fully operational at the end of 2023.
The wind farm will comprise 22 wind turbines which will be supplied by Germany's Nordex Group.
It will supply electricity to up to 75,000 households and will reduce carbon dioxide emissions by around 115,000 tonnes annually.
It is the first renewable energy project in the country including a commercial power purchase agreement (PPA), which was concluded with the Swiss renewables producer and trader AXPO.
Four banking groups are financing the project: Erste Group Bank and Novi Sad-based Erste Bank, Raiffeisen Bank International and its Belgrade-based unit Raiffeisen bank, Slovenia's NLB and Belgrade-based NLB Komercijalna banka, and OeEB – the Development Bank of Austria.
MK Group is a Serbian holding company that operates in the agriculture, banking, and tourism sector.
Information about ALFI Private Equity Fund was not immediately available. Company officials did not respond to a SeeNews email seeking further information by the time this article was published.
($ = 0.9149 euro)