Photo: Masdar
Masdar and Taaleri SolarWind III Fund reached the financial close for their Čibuk 2 wind power project in Serbia, with UniCredit and Erste providing project financing. Special purpose vehicle Čibuk 2 Wind Energy, a subsidiary of their joint venture Masdar Taaleri Generation, signed a power purchase agreement, as well as contracts on balancing and a market premium, with state-owned power utility Elektroprivreda Srbije (EPS). The facility of 154 MW will be built next to the existing Čibuk 1 wind farm of 158 MW.
Abu Dhabi Future Energy Co. – Masdar and Finland-based Taaleri Energia put their Čibuk 1 wind power plant just northeast of Belgrade into operation in 2019. At 158 MW, it is the largest in Serbia and the Western Balkans. Now Masdar Taaleri Generation, a joint venture of Masdar and Taaleri SolarWind III Fund marked the financial closure for Čibuk 2, an adjacent wind farm with the same grid connection point.
The second part of the complex would consist of 22 turbines supplied by Nordex, totaling 154 MW. The company will also provide operations and maintenance services for the project under a 35-year contract.
The debt facility is worth EUR 144 million
UniCredit Bank Serbia, Erste Bank Serbia, and Erste Group provided project financing in the form of a debt facility of EUR 144 million in total. The legal advisor to the financial institutions in this transaction was the law office Petrikić & Partneri AOD in cooperation with CMS Reich-Rohrwig Hainz.
“The successful conclusion of financing for Čibuk 2 is another landmark in the development of renewable energy capacity in Serbia, a strategic market for Masdar as we expand into Central and Eastern Europe. Today’s announcement is a testament to investor confidence in the development of renewable energy in Serbia. Masdar plans to increase its investments in the region, and we look forward to further strong support from the investment community,” Chief Executive Officer Mohamed Jameel Al Ramahi said.
Brilliant CfD auctions
Masdar, headquartered in the United Arab Emirates, plans to complete Čibuk 2 by the first quarter of 2026. It is located between the villages of Bavanište and Mramorak in the municipality of Kovin, and nearby Dolovo, which is on the territory of the city of Pančevo. Masdar Taaleri Generation developed the project in partnership with Serbian firm New Energy Solutions.
Čibuk 2 was one of the winners at the country’s first wind power auction a year ago. The market premium is for electricity from 108.5 MW of the power plant at EUR 73.7 per MWh, in the form of a contract for difference (CfD).
Taaleri Energia’s Managing Director Kai Rintala said the investment in Čibuk 1 was a success. “The quality of the project development of the Čibuk 2 wind farm, and the financing, offtake and turbine package that we have secured, gives us confidence that we will be able to repeat that success with the Taaleri SolarWind III Fund,” he added.
The CfD auctions were “brilliant,” he stressed. “While CfDs are part of the journey to a fully liberalized electricity market, this is probably one of the best CfDs I have seen,” according to Rintala.
UniCredit, Erste each provide half of loan package
UniCredit Bank acted as financial advisor and creditor for the refinancing of Čibuk 1 two years ago. “We are recognized as a financier bank for large wind farms, financing five out of eight operational ones, three of them independently,” said CEO of UniCredit Bank Serbia Nikola Vuletić.
Erste is providing 50 percent of the total loan for Čibuk 2, with Erste Bank Serbia locally financing approximately EUR 45 million, and Erste Group covering the rest, Member of Erste Bank Serbia’s Executive Board Nikola Stamenković revealed.
“This marks the largest single green financing Erste Bank Serbia has provided to date. This marks the largest single green financing Erste Bank Serbia has provided to date. At the same time, this is the sixth wind farm we have financed,” he pointed out at the loan signing ceremony, held on the sidelines of RES Serbia 2024 conference.
Čibuk 2 to help EPS transition toward renewables
On the same occasion, state-owned power utility EPS’s General Manager Dušan Živković signed a power purchase agreement (PPA) and contracts on balancing and market premiums with director of special purpose vehicle Čibuk 2 Wind Energy Vladimir Milanović, who is also the head of its parent firm Masdar Taaleri Generation.
The new wind farm will support EPS in the transition toward renewable energy, Živković said. “We are ready to continue this way, to participate in the renewables world, to change the company and to change the portfolio of the company with these projects,” he asserted.
Đedović Handanović: Bilateral agreement possible on renewables in Serbia’s public sector
Minister of Mining and Energy of Serbia Dubravka Đedović Handanović attended the event. After a meeting with Masdar CEO Al Ramahi, she said the government has defined capital energy projects necessary for the country’s energy transition goals.
“Masdar has been present in Serbia for almost a decade. They invested about EUR 500 million in green energy, they are our long-term partner and we are considering the possibility of formalizing the cooperation also through a bilateral agreement concerning support in the development of projects for renewable energy sources in our public sector,” Đedović Handanović stated.
The company, founded in 2006, has developed and partnered in projects in over 40 countries. Masdar aims to increase its renewable energy portfolio capacity to 100 GW and become a leading producer of green hydrogen by 2030.
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