EBRD to lend 58 mln euros to build Kosovo's biggest wind farm

Enlight Renewable Energy

16/12/2019 14:35

PRISTINA, Dec 16 (Reuters) - The European Bank for
Reconstruction and Development will lend 58 million euros
($63.93 million) to finance Kosovo's biggest wind farm, it said
on Monday, more than doubling renewable energy capacity in the
heavily coal-reliant country. 
    The EBRD said the new 105-megawatt Sowi Kosovo wind farm
project in Bajgora, northern Kosovo, which is being developed by
Israel's Enlight Renewable Energy  ENLT.TA , will take the
country's installed renewable energy capacity beyond 200 MW.
    At the moment around 90% of Kosovo's electricity is produced
by two ailing coal-fired plants, Kosova A and Kosova B, which
are among Europe's worst polluters. The lender said the new
project will cut emissions.
    "When complete, Bajgora will represent about 10% of the
country's installed capacity and avoid 247,000 tonnes of CO2 a
year, making a significant contribution to climate change
mitigation," the EBRD said in a statement.
    The EBRD loan will cover only half the total construction
cost, with the other half covered by other lenders.
    Kosovo aims to achieve generating capacity from renewables
of 400MW by 2026, including wind, hydro and sun. However, it is
still planning to develop more coal-powered capacity. 
    In May this year Kosovo and London-listed power firm
ContourGlobal picked a consortium of General Electric
subsidiaries to build a 500 MW coal-fired plant in the country
that is designed to meet nearly half of Kosovo’s power demand.
 urn:newsml:reuters.com:*:nL5N22C6P5
    The deal needs to be voted on in parliament, but that was
delayed following a snap general election in October. 
    Despite having 14 billion tonnes of reserves of lignite, the
fifth largest in the world, Kosovo was told by the European
Union to invest more in clean energy and possibly phase out coal
as an energy source.
    Enlight has previously said that the 27-wind turbine farm is
expected to bring annual revenue of 25 million euros for the
first 12 years, and 15 million euros each year after.
    The EBRD, which has invested some 413 million euros in
Kosovo in 67 projects, said it aims to make 40% of its annual
investments in the green economy by 2020.

($1 = 0.9073 euros)

 (Reporting by Fatos Bytyci; Editing by Jan Harvey)
 ((fatos.bytyci@thomsonreuters.com; +383 49 161 602;))