UAE clean energy firm Abu Dhabi Future Energy Company PJSC (Masdar) has announced the successful financial closure of the 154 megawatt (MW) Čibuk 2 wind farm in Serbia.
The financial closure was formalized during a special ceremony held alongside RES Serbia 2024, attended by Serbia’s Minister of Mining and Energy, Dubravka Djedovic Handanovic, Masdar’s CEO, Mohamed Jameel Al Ramahi, Taaleri Group’s CEO, Peter Ramsay, and Taaleri Energia’s Managing Director, Kai Rintala.
Non-recourse project financing for Čibuk 2 has been obtained from commercial lenders UniCredit and Erste (Erste Group and Erste Bank Serbia), who are providing a EUR144 million (roughly $159 million) debt facility, underscoring the feasibility and potential of renewable energy initiatives in Serbia.
We’re delighted to announce that, alongside @Taaleriteam, we’ve reached financial close for the 154MW Čibuk 2 wind farm in #Serbia, expected to be operational by the first quarter of 2026.
— Masdar (@Masdar) September 23, 2024
Project development and partnerships
Čibuk 2 is being developed by Masdar and Taaleri Energia through their joint venture, Masdar Taaleri Generation, in collaboration with New Energy Solutions, a prominent developer in Serbia. Nordex has been contracted to supply the turbines and will also manage operations and maintenance for the project under a 35-year agreement.
Construction timeline and impact
Moreover, Construction is already underway, with the wind farm anticipated to be operational by the first quarter of 2026. Čibuk 2 is expected to generate enough renewable energy to power approximately 62,000 households and reduce carbon dioxide emissions by 311,200 tons annually.
Technical specifications and integration
The project will consist of 22 Nordex 7MW turbines and will share the same grid connection point as the 158MW Čibuk 1 wind farm, which was the largest utility-scale wind project in Serbia and the Western Balkans when it commenced operations in October 2019. Upon completion, Čibuk 2 will elevate Masdar’s total renewable energy capacity in Serbia to 312MW, establishing the combined Čibuk project as the largest operational wind farm in the country.
Investor confidence
Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi, noted that the successful conclusion of financing for Čibuk 2 represents another significant milestone in the growth of renewable energy capacity in Serbia, which is a strategic market for Masdar as the company expands into Central and Eastern Europe. He further emphasized that this announcement reflects investor confidence in the renewable energy sector in Serbia. Al Ramahi mentioned that Masdar intends to boost its investments in the region and expressed anticipation for continued strong support from the investment community.
Read more: Abu Dhabi’s Masdar City cuts CO2 emissions by 30.6 percent in 2023, reducing 3,392.6 tons
Milestone in green financing
Additionally, this financing represents the largest single green financing provided by Erste Bank Serbia to date and marks the sixth wind farm financed by the bank, enhancing its leadership role in supporting green energy projects in Serbia.
UniCredit Bank previously acted as financial advisor and creditor for the refinancing of Čibuk 1 two years ago.
Serbia’s renewable energy goals
Serbia aims to achieve 41 percent renewable energy capacity by 2030, and Masdar is collaborating closely with the Serbian government and local stakeholders to help realize the country’s clean energy goals.
Masdar’s global vision
Since its inception in 2006, Masdar has played a pivotal role in advancing the UAE’s vision as a global leader in sustainability and climate action. The company has developed and partnered on projects in over 40 nations, with a goal of expanding its renewable energy portfolio to 100GW by 2030 and becoming a major producer of green hydrogen by the same year.
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