The European Bank for Reconstruction and Development (EBRD) will lend EUR200m for the modernization of the Slovenian state-owned Termoelektrarna Sostanj thermal power plant.
The loan will be used to finance the construction of a new 600MW coal-fired unit that will replace five existing low efficiency and high carbon intensity units.
According to EBRD, the project will utilize energy-efficient technology and will reduce carbon emissions of around 1.2 million tonnes annually in the long run.
Structured under EBRD’s A/B loan scheme, EUR100m will be retained on the bank’s account, with the rest of the amount is syndicated to commercial banks.
The project will be co-financed by the European Investment Bank, which is providing EUR550m.