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EBRD boosts support for renewable energy in Bulgaria
€54 million for construction of mini hydro power plants
The EBRD is boosting its support for the development of renewable energy in its region with a €54 million loan for the construction of nine small hydro power plants along the river Iskar in Bulgaria.
The hydro plants will be built, owned and operated by Vez Svoghe, a company 90 percent owned by a subsidiary of the Petrolvilla & Bortolotti group, an Italian provider of energy and energy-related services, and 10 percent by the municipality of Svoghe.
EBRD is actively promoting the development of renewable energy sources within the context of its Sustainable Energy Initiative (SEI), which was launched in May 2006. Under this initiative, the EBRD is sharply increasing its investments in energy efficiency, renewables and clean energy projects across its countries of operation.
In common with other European countries, Bulgaria has pledged to increase renewable energy as a proportion of total electricity consumption by 2010. Once operational, the nine small HPPs will have a total capacity of 26 MW.
Signing the project, EBRD President Jean Lemierre said that the EBRD is supporting Bulgaria in its efforts to diversify its energy sources and has played a prominent role in financing the construction of new generation capacities in the country. The Bank is committed to supporting sustainable energy projects and financing renewable energy is an important aspect of ensuring energy security for generations to come, he said.
The EBRD helped Bulgaria to restructure and modernise its electricity sector, financing projects in excess of €2.5 billion including investments in the Maritsa East Thermal Power Plants, and the transmission and distribution sectors. The electricity sector remains a top priority for the Bank and with the closure of units 3 and 4 of the Kozloduy Nuclear Plant in January 2007, there is an even greater need to invest in upgrades and new capacity together with improved energy efficiency. The Bank can work with both the private and public sectors to meet this challenge.
The mini hydro loan will consist of an A-loan of up to €34 million provided by the EBRD, and a B-loan portion of up to €20 million syndicated to an international bank. Technical cooperation grants for environmental and technical due diligence were provided by the UK Department for International Development and by the Italian government.
The EBRD is the largest investor in Bulgaria with more than €1.4 billion committed to projects across the country. Working with its many partners, the Bank has mobilised more than €5.7 billion for projects in Bulgaria.
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