KfW Bank and EPS Signed Loan Agreement

EPS Constructs First Wind Farm

Press Release

(Belgrade, November 29th, 2017)

Public Enterprize Electric Power Industry of Serbia and German KfW Development Bank signed EUR 80 million loan agreement for Kostolac wind farm construction project financing.

– We are starting with the implementation of Kostolac wind farm construction, and thus EPS, entire Serbian power system and Serbia are taking bold steps towards fulfilling commitments regarding renewable energy sources share increase in the total consumption. The first wind farm that EPS will construct represents a significant investment of about 97 million euros in total – said Milorad Grčić, PE EPS Acting Director, at the signing of loan agreement with KfW Bank.

Grčić said that the beginning of construction is planned for 2019 and that the generation of the first kilowatt-hours is expected in 2020.

– Wind farm total capacity will amount to 66 MW which is sufficient for supply of about 30,000 households – said Grčić.

It is planned to erect 20 towers with wind turbines within the wind farm. They will be constructed on the depleted open cast mines and dumps belonging to EPS branch TPPs-OCMs Kostolac. Expected annual generation in EPS' wind farm is about 150 million kilowatt-hours.

– EPS is starting with involvement in wind power projects for electricity generation, and together with the projects in hydro sector it will help Serbia reach European commitment to generate 27 percent of total power consumption from the renewable sources until 2020. Kostolac wind farm is not included in 500 MW quota of wind power capacities with feed-in tariffs, this is an entirely new feature that helps Serbia meet its commitments – said Aleksandar Antić, the Minister of Mining and Energy.

Antić pointed out that the on-going projects in energy sector amount to three billion euros, out of which projects realized by EPS amount to about two billion euros.

– Wind farm in Kostolac is financed from cooperation between Serbia and Germany. Very good partnership relations with EPS, Ministry of Mining and Energy and Ministry of Finance enabled the initiation of this project. The new EPS' wind farm paves the way for greater use of renewable energy sources in Serbia. Project implementation will allow for carbon dioxide emission reduction by 120,000 tons – said Arne Gooss, Director, KfW Office in Belgrade.  

The loan repayment period is up to 15 years, including four-year grace period, with the fixed interest rate of 0.85 percent annually. 

Towers with wind turbines should be erected at four locations – Klenovnik, Cirikovac, Petka and Drmno. Towers will be 117 meters high, with 63 meters blade radius, so the total wind turbine height will amount to 180 meters.

EPS will provide about 15 million euros of its own funds for the project implementation.

Separate agreement was also signed with KfW Bank for planned donation for EPS in the amount of one million euros. According to KfW Bank rules, money from donation is planned for capacity planning and management experts' engagement, additional birds and bats monitoring, and supplementing of environmental impact assessment.

PE EPS PR Sector​