The EBRD has launched two new facilities worth a total of €110 million to finance investments by enterprises in the Western Balkans in energy efficiency and renewable energy projects.
The new funding is a continuation of the EBRD’s drive to promote energy efficiency and to unlock new sustainable sources of energy throughout the whole EBRD region, including in the Western Balkans where energy intensity remains relatively high.
One €50 million facility will provide funding directly to privately-owned companies in the Western Balkans while a second €60 million facility will provide loans to companies via the banking sector.
“This new financing will add important new momentum to the EBRD’s sustainable energy strategy. It will act as a catalyst to unlock the great potential in the region to reduce energy intensity and promote diverse sources of green energy,” said EBRD President Thomas Mirow, unveiling the new facilities at an Energy Forum in Sarajevo.
Achieving energy efficiency in the western Balkans remains a key challenge in a region where energy usage ranges up to 2.5 times higher than the average for OECD countries in Europe.
Both of the EBRD’s new facilities are designed to encourage businesses to pursue sustainable energy projects that are often challenging to finance and implement. They provide tailor-made financing, but also assistance from technical consultants to help develop projects.
The financing also includes incentive payments that reward reductions in Greenhouse Gases as a result of projects funded by the facilities. Grant support for the facilities is provided by the European Commission, the Western Balkans Multi-Donor Fund and the EBRD’s Shareholders Special Fund.
Individual loans under the Western Balkans Sustainable Energy Direct Financing Facility (WeBSEDFF) can range from a minimum of €1 million to a maximum of €6 million. Loans provided via banks under the Western Balkans Sustainable Energy Credit Line Facility (WeBSECLF) are for a maximum of €2 million.