Israeli company Enlight Renewable Energy has secured funding from the European Bank for Reconstruction and Development, Erste Group Bank and NLB Bank to build and operate the 105MW Bajgora wind farm in Kosovo.
Enlight is the majority owner of Sowi Kosovo, which is developing the project in Mitrovica municipality, alongside unnamed German and Kosovan partners.
EBRD will provide a €58m loan, with a further €58m supplied from the two other banks, which both benefit from cover provided by the German export credit agency Euler Hermes.
When complete, Bajgora will represent about 10% of the country’s installed capacity and avoid 247,000 tonnes of carbon dioxide a year.
EBRD said its funding follows three years of work with the government to make legislative reforms to unlock project financing for renewables in the country.
EBRD director for energy EMEA Harry Boyd-Carpenter said: “We are delighted to be partnering again with Enlight and our co-financiers to support this landmark project.
“It is great to see a country that has relied for so long on lignite begin to exploit its renewable potential.
“The success of this project is a tribute to all involved, but especially the Kosovar authorities, who have built a contractual framework that can attract high quality international investors and lenders.”
The bank said that this is the largest private sector project that it has financed in Kosovo to date.
Overall, the EBRD has invested €413m in 67 projects in Kosovo.