European Bank for Reconstruction and Development
EBRD improves energy efficiency of Serbian power network
Date: 02 September 2010
The EBRD is helping to modernise Serbia's power distribution network
with a EUR40 million sovereign loan to Elektroprivreda Srbije (EPS), to
upgrade the electricity system and install modern smart meters.
EPS is the state-owned electric power utility of Serbia, servicing
close to 3.5 million customers. Due to years of underinvestment and the
use of outdated technology, the company continues to face a high level
of electricity losses in its distribution network and difficulties in
collecting bills. The energy and carbon intensities of the Serbian
economy are more than twice the EU average.
The proceeds of the EBRD loan will be used to purchase and install
modern smart electricity meters for end-users, as well as to implement
the associated infrastructure and software required to manage the new
system.
The project will enable EPS to reduce significantly the level of
electricity losses in its network, increase bill collection levels and
raise the company's overall operational efficiency. These improvements
will begin the transformation of EPS's network into a modern "smart"
power grid and reducing CO2 emissions by approximately 200,000 tonnes
annually.
"Utilities across the world are increasingly focused on upgrading their
distribution networks to become smart grids. This is key firstly to
reduce losses and bad debts but in the longer term for the networks to
become the backbone of a more sustainable electricity system. We are
delighted to be supporting EPS in such an important step for the
company," said Nandita Parshad, Director of EBRD's Power and Energy
team.
"This project will enable EPS to improve significantly its day to day
operations, and to reduce its costs of operation. It is a key component
of the company's development strategy. In the long term EPS plans to
replicate this project by installing smart meters throughout the
distribution network" said Dragomir Markovic, EPS's General Manager.
The EBRD loan is complemented by technical assistance financing from
the Spanish government and from the Bank's Western Balkans Fund.
The project, with a total cost of EUR80 million, is expected to be
co-financed by a parallel loan from the European Investment Bank.
With this latest project, the EBRD's committed investment in Serbia
reached EUR2.1 billion.
---
