Serbian Wind Power Expansion Gets Boost with Čibuk 2 Project
Čibuk 2 will power about 62,000 houses and prevent 311,200 tonnes of carbon dioxide emissions annually.
Abu Dhabi Future Energy Company PJSC – Masdar, a leading force in clean energy in the United Arab Emirates, has officially announced the financial close for the 154-megawatt (MW) Čibuk 2 wind farm, located in Serbia. This milestone marks another significant achievement in the company's renewable energy expansion efforts.
Signing Ceremony at RES Serbia 2024
The financial close agreement was formalized during a special ceremony at the RES Serbia 2024 event. The signing took place in the presence of key stakeholders, including Serbia’s Minister of Mining and Energy, Dubravka Djedović Handanović. Attending the ceremony were also Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi, Taaleri’s Group CEO, Peter Ramsay, and the Managing Director of Taaleri Energia, Kai Rintala.
Secured Project Financing Through Leading Banks
The Čibuk 2 wind farm project has secured non-recourse financing through commercial lenders, UniCredit and Erste Group (along with Erste Bank Serbia). These financial institutions are extending a EUR 144 million debt facility, demonstrating the strong feasibility and viability of renewable energy projects in Serbia.
Collaboration with Key Partners and Suppliers
Masdar, together with Taaleri Energia, developed Čibuk 2 through their joint venture vehicle, Masdar Taaleri Generation, in collaboration with New Energy Solutions, one of Serbia’s leading developers. The wind turbines for the project will be supplied by Nordex, which will also oversee operations and maintenance under a 35-year service contract.
Construction Timeline and Energy Impact
Construction on the Čibuk 2 project has already begun and is anticipated to be completed by the first quarter of 2026. Once operational, the wind farm will generate enough renewable energy to power approximately 62,000 homes, displacing 311,200 tonnes of carbon dioxide annually. The project will feature 22 Nordex 7MW turbines and share a grid connection with the existing 158MW Čibuk 1 wind farm.
Words from the Leaders
Masdar Chief Executive Officer, Mohamed Jameel Al Ramahi, said: “The successful conclusion of financing for Čibuk 2 is another landmark in the development of renewable energy capacity in Serbia, a strategic market for Masdar as we expand into Central and Eastern Europe. Today’s announcement is a testament to investor confidence in the development of renewable energy in Serbia. Masdar plans to increase its investments in the region and we look forward to further strong support from the investment community.”
Taaleri Energia Managing Director, Kai Rintala, commented: “Our investment in the neighboring Čibuk-1 wind farm in 2017 has proven to be a success. The quality of the project development of the Čibuk-2 wind farm, and the financing, offtake and turbine package that we have secured, gives us confidence that we will be able to repeat that success with the Taaleri SolarWind III Fund.”
Nikola Stamenković, Member of Erste Bank Serbia’s Executive Board, added: “We are proud to highlight that Erste is providing 50% of the total loan for the Čibuk 2 wind farm project, with Erste Bank Serbia locally financing approximately EUR 45 million, and Erste Group covering the rest. This marks the largest single green financing Erste Bank Serbia has provided to date. At the same time, this is the sixth wind farm we have financed, further strengthening our leadership position in financing green energy projects in the Serbian market.”
UniCredit Bank acted as financial advisor and creditor for the refinancing of Čibuk 1 two years ago. Nikola Vuletić, CEO of UniCredit Bank Serbia, said: “We are witnessing a step forward in creating a sustainable future for the entire region. We are recognized as a financier bank for large wind farms, financing five out of eight operational ones, three of them independently. It is a pleasure to support those who invest in the development of renewable energy in Serbia. This project is not only a significant investment in the energy infrastructure of our country, but also a strong message about our shared responsibility towards future generations.”
Largest Wind Farm in Serbia and the Western Balkans
Upon completion, the combined Čibuk wind farms will represent the largest operational wind farm in Serbia, with a total renewable energy capacity of 312MW. Čibuk 1, which began operations in October 2019, was previously the largest utility-scale wind project in Serbia and the Western Balkans. The Čibuk 2 project further cements Masdar's role in supporting Serbia's renewable energy goals.
Serbia’s Renewable Energy Targets and Masdar’s Global Vision
Serbia aims to achieve 41% renewable energy capacity by 2030. Masdar is working closely with the Serbian government and local partners to support the country’s clean energy initiatives. Since its founding in 2006, Masdar has been instrumental in advancing the UAE's leadership in sustainability and climate action. With operations in over 40 countries, Masdar is on track to expand its renewable energy portfolio to 100GW by 2030 and aims to be a leading producer of green hydrogen by the same year.
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