Today, in the Government of the Republic of Serbia, amendments to the Special Agreement for the renewable energy project of the wind farm Kostolac were signed between the state of Serbia, the German Development Bank (KfW) and Elektroprivreda Srbije (EPS).
The Agreement was signed on behalf of Serbia by the Minister of Mining and Energy, Dubravka Đedović Handanović, and on behalf of EPS by the Acting Director of that joint stock company, Dušan Živković.
The signing of the Agreement was also attended by Minister of European Integration Tanja Miščević and EU Ambassador to Serbia Emanuele Giaufret.
Minister of European Integration of the Republic of Serbia Tanja Miščević stated that the areas of energy, as well as green and digital transitions, would be placed high on the priority list for the growth plan because those are areas that generate further growth and development.
“These areas not only contribute to the growth and development of the country, they also contribute to a much healthier life for all of us who live here,” she said.
Miščević emphasised that the Kostolac wind farm project was a confirmation that in partnership with the EU, Serbia could reduce everything that was produced as a result of the use of fossil fuels and thereby decrease pollution, especially air pollution. According to her, the project is also evidence of Serbia’s substantial potential.
“We have good projects that help us assert ourselves and truly obtain significant funds from both EU member states, through loans from international financial institutions, and EU grants,” said the Minister of European Integration.
After signing this document, Đedović Handanović said that the wind farm Kostolac was the first pilot project of EPS in the field of electricity production from wind power.
“The value of the Kostolac wind farm project is EUR 144 million, with a capacity of 66 MW. The production of this power plant, or its 20 wind turbines, will be sufficient to supply green energy to around 30,000 households,” said the Minister.
She emphasised that the project was financed through a loan from the German KfW Bank and the European Union through the Western Balkans Investment Framework (WBIF), while a portion of the funds was provided by EPS.
For this project, as she specified, the EU would provide EUR 30 million as non-repayable aid, EPS would allocate EUR 32.2 million, KfW would provide a concessional loan of EUR 80 million, and the grant provided by that bank was EUR 1.8 million.
Đedović Handanović announced that the wind farm was expected to be connected to the grid and start delivering green energy to citizens in the first quarter of 2025. She mentioned that part of the internal roads had already been built, and the delivery of equipment, for which a contract had been signed, was scheduled for spring.
She said that the strategic directions in which the energy sector of Serbia would develop involved an increased share of renewable energy sources (RES) in electricity production and a reduction in the emission of harmful gases, emphasising that that also meant that new investments by EPS had to go in that direction and contribute to achieving strategic goals.
“The state sets strategic goals, and EPS plays an important role in their achievement. Therefore, accelerating investments will be one of the main tasks of the Supervisory Board and the future Director General of this company,” she said.
The Minister also mentioned that in previous years, those investments had been insufficient, reminding that no new power plant had been built for more than 30 years, both in terms of baseload energy and green megawatts.
“We have started to change that to speed up projects that were initiated in previous years. Last year, we completed the revitalisation of HPP Đerdap 1, gaining an additional 114 megawatts of hydro capacity, and in the coming months, the TPP Kostolac B3, with a capacity of 350 MW, will be completed,” said Đedović Handanović.
According to her, the next step is investing in RES, in which EPS did not invest in previous years, specifically in wind and solar energy.
Head of the EU Delegation to Serbia Emanuele Giaufret stated that the Kostolac wind farm project was not only an advantage for Serbia but also a benefit for the European Union, as well as for promoting economic development and also for surviving on this planet and preserving the health of our families.
He highlighted that the project symbolised the commitment of the EU and Serbia to rely less on fossil fuels and embrace RES.
“The project is in line with the EU’s energy policy and the Green Agenda for the Western Balkans, representing a significant step towards our environmental goals,” said Giaufret, adding that everyone was aware of the challenges the planet and citizens faced, such as air pollution.
According to Giaufret, there are 11 cities in Serbia with excessive air pollution, and there are threats to food safety, water sources, as well as great vulnerability to the consequences of economic disasters.
“The wind farm Kostolac and the next solar energy factory on Kolubara and Morava, as well as the thermal power plants and their ash disposal, are examples of how Serbia should address these challenges,” he said.
Giaufret also pointed out that the first wind farm, managed by EPS, for which the EU was providing EUR 30 million as non-repayable aid, was a clear example of how green initiatives could be initiatives for growth, bringing benefits to the economy, citizens and the planet because we needed to have a green economy and ensure its growth.
“The EU is proud to be able to assist Serbia and its citizens in addressing the challenges of the green transition and all necessary reforms in this regard. Through strategic advice, including our technical assistance, annual reports and financial support, we strive for a greener, more prosperous and more sustainable country,” he said and reminded that, since 2007, the EU had provided more than EUR 500 million in grants, i.e. non-repayable aid for the energy sector of Serbia.
“The wind farm Kostolac is not just an ordinary project; it is a symbol of hope, change and our shared commitment to a better and greener future, which is Serbia in the EU,” he concluded.
German Ambassador to Serbia Anke Konrad stated that Germany was focused on supporting the development of green energy in Serbia and that the wind farm Kostolac would replace approximately 95,000 tons of coal that would be needed to produce the same amount of electricity.
“If companies in Serbia do not have access to clean energy sources in an adequate and sufficient manner, they are at risk of losing competitiveness in the European market when the Carbon Border Adjustment Mechanism (CBAM) comes into effect in 2026,” said Konrad.
The location for the construction of the wind farm Kostolac in eastern Serbia is on the sites of utilised open-cast mines—Drmno, Petka, Ćirikovac and Klenovnik—and the farm’s lifespan, as presented today, is 20 years.
Source: Tanjug
