The public enterprise Elektroprivreda Srbije (EPS) and the German Development Bank KfW signed a loan agreement worth EUR 80 million for the purpose of financing the construction of a wind farm in Kostolac on November 29.
– We will start building a wind farm in Kostolac. EPS, the entire energy system of Serbia and the country itself are thereby going steadily towards meeting the obligations regarding an increase of the share of renewable energy sources in the total consumption. The first wind farm to be built by EPS is a considerable investment, worth a total of around EUR 97 million – said Milorad Grcic, acting director of EPS, at the signing of the loan agreement with KfW.
Grcic announced that the beginning of the construction was planned for 2019 and the the first kilowatt-hours should be produced in 2020.
– The wind farm will have a total power of 66 megawatts, which is enough to supply around 30,000 households – Grcic said.
The plan is to raise 20 wind generators within the wind farm. The construction will be carried out in the location of closed surface cuts and disposal grounds of EPS' branch TE-TO Kostolac. The expected annual production at the EPS wind farm is around 150 million kWh.
Minister of Mining and Energy Aleksandar Antic pointed out that energy projects worth a total of EUR 3 billion were in progress, of which EPS' projects amounted to around EUR 2 billion.
– The Kostolac wind farm is financed as part of the Serbian-German cooperation. The very good partnerships with EPS, the Ministry of Mining and Energy and the Ministry of Finance have enabled the initiation of this project. The new EPS wind farm paves the way towards an increased usage of renewable energy sources in Serbia. The realization of the project will enable a reduction of carbon-dioxide emissions by 120,000 tons – said Arne Gooss, Director of KfW Office in Serbia.
The repayment period is 15 years, including a grace period of four years, and the fixed annual interest rate is 0.85%.
The wind generators should be installed in four locations – Klenovnik, Cirikovac, Petka and Drmno. The columns will be 117 meters tall, and the propeller radius will be 63 meters, making for the total height of 180 meters.
EPS will provide around EUR 15 million of their own funds for the realization of the project, the press release says.
As added, a special agreement on special-purpose donation for EPS in the amount of EUR 1 million was also signed with KfW. In line with KfW's rules, the donation money is meant for hiring experts for capacity planning and management, additional bird and bad monitoring and additional environmental impact assessment.
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