EPCG has obtained approval to pursue long-term financing of up to €64.22 million for a series of ten renewable energy projects, which collectively possess a capacity of 95.87 MW and are expected to generate approximately 124.5 GWh annually.
The project portfolio includes installations such as Solari 5000+, solar arrays at Željezara Nikšić, as well as systems located at the Vrtac, Slano, and Krupac dams, in addition to four units at Kapino Polje and the initial phase of Krupac 47.
This financing plan translates to around €670,000 per installed MW, indicating that the debt could cover a significant portion of construction costs if grid infrastructure requirements are minimal. The anticipated capacity factor for the portfolio is approximately 14.8 percent, which aligns with a focus on distributed and conventional photovoltaic generation.
The specific terms related to the debt’s maturity, interest rate, grace period, and security arrangements have yet to be revealed. These factors will be critical in assessing whether the assets can sustain adequate debt-service coverage during periods of low pricing. Typically, a debt service coverage ratio (DSCR) of at least 1.25 to 1.35 is expected for contracted solar assets, with higher ratios needed when revenues depend on market conditions.
By utilizing distributed installations, EPCG aims to minimize grid connection costs and position energy output closer to consumption points. The solar projects situated at dams and industrial locations can leverage existing land, access roads, and electrical infrastructure. However, their production remains closely linked in time, meaning diversification by location does not mitigate exposure to midday price fluctuations.
EPCG’s financial strategy must balance the demands of coal plant compliance, hydropower maintenance, new wind energy initiatives, and its partnership with Masdar. The proposed €64.22 million financing facility facilitates a distinct separation between smaller, quickly deployable renewable assets and the larger strategic projects valued in the billions.
