The European Investment Bank is increasingly connecting the Western Balkans with European standards in the field of renewable energy. In Serbia alone, the EIB is financing the rehabilitation of hydropower plants with a €100 million loan, the introduction of smart meters, and grid modernization, while across the region it supports wind farms, solar projects, and district heating systems.
As Damien Sorrell, Head of the EIB Regional Hub for the Western Balkans, emphasized in a short interview for OIE Serbia, the Bank’s mission is to ensure that local projects are ready, aligned with EU regulations, and resilient to climate change.
What financial instruments and programs does the EIB offer for renewable energy projects?
– As the EU climate bank, the European Investment Bank (EIB) offers a comprehensive package of financial instruments and advisory support tailored to accelerate renewable energy investment. At its core, the EIB provides long-term loans to both public and private project promoters, enabling the construction of large-scale renewable energy projects, including wind, solar and hydropower, as well as investments in grids, storage and energy efficiency. These loans can be complemented by guarantees and risk-sharing instruments, which help de-risk projects and mobilise additional private capital.
A key feature of the EIB approach is blending. Through close cooperation with the European Commission and Team Europe partners, EIB financing can be combined with EU grants and technical assistance under programmes such as the Western Balkans Investment Framework (WBIF). This blended finance model makes projects more bankable and allows us to scale up investments that would otherwise be difficult to deliver. A good example is the 132 MW Poklečani wind farm in Bosnia and Herzegovina, backed by €103 million in EIB financing and a €42 million EU grant.
Complementing financing, the Bank also provides advisory services and project preparation support, for example through programmes such as JASPERS and dedicated technical assistance through EIB Advisory. This is essential to help governments and companies design, structure and implement complex renewable energy projects in line with EU standards. We can see the key challenge in the Western Balkans being the preparation and implementation of such projects.
Can you highlight projects in Serbia or the region in which the bank has participated that have significantly contributed to the energy transition?
– The broader geopolitical context highlights the importance for Europe of reducing its structural dependence on fossil fuels and strengthening its energy resilience. In recent years, this shift has translated into a marked acceleration of investment in clean energy, with annual spending now surpassing €400 billion, more than ten times the level directed towards fossil fuels.
This shift is also important for the Western Balkans, where countries must ensure reliable and affordable energy today, while building cleaner and more resilient and diversified systems for tomorrow. This requires sustained investment across renewables, grids, storage, and energy efficiency, alongside stronger regional integration through interconnectors and smarter networks. These elements are essential to enhance resilience, reduce risks, emissions and air pollution, and attract long-term investment.
The EIB is actively financing renewable energy across the region. In Serbia, we are working with Elektroprivreda Srbije on hydropower rehabilitation, supported by a €100 million loan, including upgrades such as a new 13 MW unit at Potpeć, and rehabilitation of Bistrica, thereby boosting renewable generation. We are financing the construction of wind farms in Bosnia and Herzegovina that will power around 93,000 households, as well as a solar project nearby Priština. These projects will strengthen cleaner and more diversified energy mixes across the region.
However, adding more renewable power sources will not be enough. Electricity grids need to be upgraded to integrate more renewable energy sources smoothly. In Serbia, we are financing the installation of smart electricity meters, as part of the country’s wider electricity grid modernisation programme, to increase energy and system efficiency. We aim to finance the modernisation of district heating in Pristina to extend the network, connect over 20,000 new customers, and increase energy efficiency.
The private sector also plays a key role in the energy transition, which is why we are supporting SMEs to modernise their production tools, diversify their energy sources and innovate in this sector through dedicated loans such as the Innovation and Green Transition Facility and programmes such as the EU for Green Agenda.
More broadly, in the EU, we are financing around half of all ongoing grid and inter-connector projects, one in five solar plants, one in three onshore wind projects and the majority of offshore wind development. In support of the European Commission’s Clean Energy Investment Strategy, the EIB Group will deliver more than €75 billion over the next three years to make sure that we have the right infrastructures and new technologies in place.
How do you see the role of the EIB in connecting local investors with international standards in the field of renewable energy?
The EIB plays a key role in bridging local investors with international and EU standards in renewable energy. These standards are essential to ensure transparency in project preparation, competitive procurement, and full alignment with environmental, social and climate requirements and best practices. They also guarantee that projects are designed to be climate‑resilient, able to withstand increasingly frequent extreme weather events such as heatwaves, floods and droughts, which are already affecting the region. We also need to take digital security of our projects into account.
As the EU climate bank, all the projects we support need to be Paris-aligned and comply with EU environmental and social standards. Our role is to ensure that such standards are not seen as a barrier, but as a foundation for attracting investments and scaling renewables.
The challenge today is not only the availability of capital, but the ability to prepare, permit, and deliver high‑quality projects. This requires strong institutions, clear regulation, and a robust pipeline of projects. Beyond setting standards, the EIB helps translate strategies into concrete investment opportunities. We combine long‑term financing with EU grants and technical assistance to ensure projects are bankable and aligned with EU requirements.
We also support the private sector and local financial markets in this transition, to mobilise more capital. For example, our €160 million credit line with Banca Intesa and Intesa Leasing helps SMEs invest in energy efficiency and renewables. Under the EU for Green Agenda in Serbia initiative, over 90 green innovations have been supported so far, including clean energy projects. Through the Greening Financial System, we are helping Albania and North Macedonia develop its first Green Taxonomy to align its national frameworks with EU standards when it comes to defining ‘’green projects’’ suitable for investments. We are now also helping Bosnia & Herzegovina setup a similar scheme. The Western Balkans are now more attractive for renewable investment than ever. The priority now is to turn that potential into a steady pipeline of well-prepared, grid-connected projects that can attract sustained investments.
