News | September 14, 2021

EBRD Supports The Modernization Of Serbia's Elektrodistribucija

  • Project will improve security and reliability of power supply, reduce losses
  • Prosumers to be integrated into the power distribution system
  • Significant reduction of CO2 emissions

The European Bank for Reconstruction and Development (EBRD) is extending a €40 million loan to Serbia’s electricity distribution company, Elektrodistribucija Srbije (EDS) to finance the roll-out of smart metering infrastructure.

The loan proceeds will be used for the first phase of smart meter deployment, such as the installation of software and hardware, and integration of the new system. Around 205,000 smart meters are expected to be installed in Serbia’s three cities of Kraljevo, Čačak and Niš.

The investment will improve the security and reliability of the power supply, reduce commercial losses and improve tariff collection rates. The expected reduction in technical losses, due to old equipment, will lead to CO2 emissions savings of 5,000 tonnes each year.

Furthermore, the smart metering infrastructure will encourage new renewable energy projects and help to integrate prosumers into the power distribution system, in line with the new Law on Renewable Energy Sources.

Nandita Parshad, Managing Director, Sustainable Infrastructure Group, EBRD, said: “One of our key priorities for Serbia in the energy sector is to introduce technologies which can improve energy efficiency and reduce the country’s emissions intensity, and we are glad that this investment with EDS will bring us a step closer to reaching these objectives.”

Saša Stefanović, Business System Director, EDS, said: “We are very pleased to be starting the implementation of this important project which will lead to optimization of network and costs savings for our company. We look forward to seeing the results of the rollout of the first phase and to continue to work on improving and modernising our network and services”.

Serbia, similar to other Western Balkans countries, suffers from high carbon intensity, low energy efficiency and a high level of energy losses. The country is set to work on improving energy efficiency governance, with smart metering as one of the priority projects.

This project is also aligned with EBRD’s digitalisation agenda as it envisages the roll-out of smart meters which will support the digitalisation of the country’s power sector, enhancing the reliability and flexibility of supply and demand side management.

The EBRD is a leading institutional investor in Serbia and has invested more than €6.7 billion across 289 projects in the country to date. The EBRD is focusing on support for private-sector development, the improvement of public utility services and on the overall transition to a green economy.

Source: The European Bank for Reconstruction and Development (EBRD)