Masdar Secures $160 Million in Funding for Čibuk 2 Wind Farm

Abu Dhabi Future Energy Company Masdar, the UAE’s clean energy powerhouse, has achieved the financial close for the 154 megawatt (MW) Čibuk 2 Wind Farm in Serbia.

The financial close agreement was signed on Monday at a special ceremony on the side lines of RES Serbia 2024 in the presence of Serbia’s Minister of Mining and Energy, Dubravka Djedović Handanović, Masdar’s CEO Mohamed Jameel Al Ramahi, Taaleri’s Group CEO Peter Ramsay and Taaleri Energia Managing Director Kai Rintala.

Non-recourse project financing for Čibuk 2 has been secured via commercial lenders, UniCredit and Erste (Erste Group and Erste Bank Serbia), who are extending a $160.04 million debt facility, a testament to the feasibility and the viability of renewable energy projects in Serbia.

Čibuk 2 has been developed by Masdar and Taaleri Energia, via their joint venture development vehicle Masdar Taaleri Generation, in partnership with New Energy Solutions, one of the leading developers in Serbia.

Nordex is supplying the turbines and will also provide operations and maintenance services for the project under a 35-year contract. Construction on the project has already begun and it is expected to be operational by the first quarter of 2026.

Čibuk 2 will produce enough renewable energy to power around 62,000 households and displace 311,200 tonnes of carbon dioxide during each year of operation.

Consisting of 22 Nordex 7MW turbines, it will share the same grid connection point as the 158 MW Čibuk 1 wind farm, which was the largest utility-scale wind project in Serbia and the Western Balkans when it became operational in October 2019.

When completed, Čibuk 2 will bring Masdar’s total renewable energy capacity in Serbia to 312 MW and make the combined Čibuk project the largest operational wind farm in Serbia.

Serbia has set a target of 41% renewable energy capacity by 2030 and Masdar is working hand in hand with the Serbian government and local partners to support the nation’s clean energy ambitions.

Landmark Funding

Mohamed Jameel Al Ramahi said that the conclusion of financing for Čibuk 2 is another landmark in the development of renewable energy capacity in Serbia, a strategic market for Masdar where it was expanding into Central and Eastern Europe.

Kai Rintala said that their investment in the neighbouring 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 they have secured, gave confidence that his company we repeat that success with the Taaleri SolarWind III Fund.

Nikola Stamenković, Member of Erste Bank Serbia’s Executive Board, said that they providing 50% of the total loan of for the Čibuk 2 wind farm project, with Erste Bank Serbia locally financing around $50 million, and Erste Group covering the rest.