Electricity

Serbia to invest EUR 320 million in electricity distribution network

Serbia invest EUR 320 million electricity distribution network

Photo: Ministry of Mining and Energy

Published

July 26, 2023

Country

Comments

0

Share

Published:

July 26, 2023

Country:

Comments:

0

Share

Minister of Mining and Energy of Serbia Dubravka Đedović said EUR 320 million would be invested to strengthen the power distribution grid. The country’s parliament is about to pass a law on guarantees for a EUR 50 million commercial loan for the purpose.

The stability of supply has been stabilized after interruptions in several areas in Serbia, caused by several violent storms, according to Minister of Mining and Energy Dubravka Đedović. She said the government would invest EUR 320 million in strengthening the distribution network.

“We had major problems in identifying the locations where the grid was disconnected. We began big new investments in the distribution network, in which we are investing EUR 320 million to strengthen and automatize it and replace transformers and old meters. This way we will reduce losses and identify future outages more easily,” Đedović stated, as quoted by the ministry.

Of note, Schneider Electric recently announced that it signed a EUR 140 million contract with Serbia for the delivery of medium voltage equipment and grid management software for the power distribution system.

Serbia to provide guarantees for commercial loans for EDS

The National Assembly is currently debating a proposal to provide guarantees for a loan package for distribution system operator Elektrodistribucija Srbije (EDS) of EUR 50 million. The proceeds are intended for the replacement of wooden poles with ones made of concrete, switching noninsulated conductors with self-supporting power cable bundles and the adaptation of household connection devices.

The upcoming investments are intended for cutting losses in the distribution grid and to identify locations of breakdowns in the system

The firm agreed through a tender to borrow EUR 40 million from Hungarian OTP Bank’s subsidiary in Serbia and EUR 10 million from the local branch of Italy-based Banca Intesa. The loans are due in seven years including a repayment delay for the first three years. The financing facility is intended for the renewal of the network in and around the cities of Kraljevo, Niš and Kragujevac, the documentation shows.

The minister earlier said lawmakers would soon vote on bills that would enable the introduction of smart electricity meters throughout the country. She added that the implementation should start by early 2024.

The project is worth EUR 110 million. EDS signed a loan agreement with the European Bank for Reconstruction and Development in 2021 for EUR 80 million.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Minister Dubravka Dedovic Djedovic Handanovic Female Leader of Energy Transition award

Minister Dubravka Đedović Handanović receives Female Leader in Sustainable Energy award

29 September 2023 - President of CPOR and Cofounder of WISE Serbia Branislava Jovičić handed the Female Leader in Sustainable Energy award to Minister Dubravka Đedović Handanović

Bulgaria-add-42-GW-wind-outside-protected-areas

Bulgaria could add as much as 42 GW from wind outside protected areas

29 September 2023 - A study found that Bulgaria is expected to increase its total wind power capacity by...

US-Canada-financing-nuclear-reactors-Romania-Cernavoda

US, Canada approve financing for new nuclear reactors at Romania’s Cernavodă

29 September 2023 - US Exim Bank approved a USD 57 million loan and Canada offered CAD 3 billion in financing for new reactors in Romania's Cernavodă plant

Alcazar Energy fund acquires rights wind power Bijela Montenegro

Alcazar Energy fund acquires rights to wind power project Bijela in Montenegro

28 September 2023 - Luxembourg-based Alcazar Energy took over the Bijela wind farm project in Šavnik in Montenegro, of 118 MW