GGF announced to provide about $37.6 million to Serbia for developing large scale wind power plants to help diversify the country energy sector and reduce emissions. The funds will co-finance the 42 MW Alibunar wind farm and the 158 MW Čibuk 1 wind farm.
It is expected that these projects will reduce the emissions by 50,000 tonnes annually. It will also help the Serbian government’s target to achieve 27% renewable energy share in its total energy consumption by 2020.
Commodity Inside View:
These two wind farm plants are the first of a number of projects which are to be developed over the coming years in Serbia. The country accounts for around 69% of its energy from fossil fuels while the remainder from hydro power (27%) and renewable (4%). Serbia plans to produce 27% of its energy consumption from renewable by 2020 though we understand that the target can be ambitions given the huge and risky investment involve.
Green for Growth Fund (GGF) is a public-private partnership established in 2009 with the aim to promote energy efficiency and reduce CO2 emissions. The organisation’s project financing schemes aim to achieve 20% reduction in energy consumption and/or 20% reduction in emissions. The fund is supported by numerous organisations including European Investment Bank (EIB), IMF and European Bank for Reconstruction and Development (EBRD).
We have seen huge investment in renewable in Western Europe. However, Southern and Eastern Europe have been lagging behind in the race towards renewable, mainly due to relatively weaker economic conditions. Commodity inside understands that this investment is in line with the Paris Agreement as well as the GGF goals to support developing countries to tackle climate change.
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