Home Blog Page 7

EPS Stronger and Greener – Solar Megawatts from Kostolac

Photo: Elektroprivreda Srbije

The Kostolac region has long been renowned for its mines and thermal power plants, and it was here that coal production in Serbia first commenced in 1870. It has been a birthplace of ideas and the realization of projects that have strengthened Serbia’s power sector. Even now, Kostolac is at the forefront of new projects that will contribute to increasing the share of renewable energy sources, giving this symbolically mining- and thermal-based area a key role in decarbonizing and greening electricity production.

In addition to the well-known thermal power plants with a capacity of almost 1,300 megawatts, this year the energy strength of the Electric Power Industry of Serbia (EPS) will increase by another 76 megawatts of green energy. The solar power plant Petka has been completed — the first EPS solar plant in Kostolac. Its significance is further enhanced by the fact that it was built on the external landfill of the Ćirikovac open-pit mine. In this way, an old mining dump site is being repurposed to generate new energy.

Photo: Elektroprivreda Srbije

“The solar power plant and wind park projects in Kostolac are just the beginning of our decarbonization process. With investments that increase the share of renewables, EPS demonstrates its commitment to achieving decarbonization and carbon neutrality,” said Dušan Živković, General Director of EPS.

The Petka solar power plant spans approximately 15 hectares, boasting an installed capacity of 9.75 megawatts and a projected annual production of 13.7 gigawatt-hours. The investment is valued at around 1.4 billion dinars and is financed with EPS’s own funds.

This first photovoltaic plant in Kostolac generates electricity by converting unaccumulated solar radiation into direct current through semiconductor-based (PV) solar modules. A total of 18,720 photovoltaic modules were installed at an angle of 25 degrees, each with a power rating of 580 W and an efficiency of 21 percent. The solar plant is equipped with 98 inverters — 97 rated at 100 kW and one at 50 kW. Additionally, the Petka solar plant features 10 transformer stations and one switchgear facility, from which the electricity is transferred to the Požarevac substation. As this is a pilot project and a relatively small plant (about ten megawatts), the panels are mounted on fixed supports.

IN FOCUS:

The investment is economically viable. The payback period for the invested funds is estimated at 12 years, while the operational life of the plant is 25 years. After that, only the panels need to be replaced, while the existing structures, roads, and infrastructure — which constitute a significant portion of the total investment — remain intact. Replacing the panels effectively revitalizes the plant for another 25 years of operation. The construction of the Petka plant was carried out by a consortium led by GAT from Novi Sad. Other members of the group include the Novi Sad-based Mio Company and two Hungarian firms — BSD Invest Europe Zrt from Budapest and Levi-Solar Kft. from the town of Zakanjsek.

The Petka solar plant is joined by another renewable energy (RES) facility nearby — EPS’s first wind park, Kostolac, with a capacity of 66 megawatts. All 20 wind turbines have been installed, and construction of the substation, switchgear, and internal cable network is underway, enabling wind energy production to commence by the end of this year. This facility, too, is being built on reclaimed overburden dumps, confirming EPS’s commitment to utilizing all available resources. The project covers four locations: Drmno, Petka, Ćirikovac, and Klenovnik. The planned annual production of the Kostolac wind park is 187 million kilowatt-hours — enough to supply about 30,000 households with green electricity.

The project is financed with a loan from the German development bank, KfW, worth 110 million euros, and EPS has also been granted an additional 30 million euros in non-repayable funds from the European Union through the Western Balkans Investment Framework (WBIF). Project consultants are Fichtner GmbH & Co. and Energoprojekt Entel AD. At the same time, procurement of the wind turbines, towers, substations, and switchgear is being handled by a consortium of Siemens Gamesa Renewable Energy A/S from Denmark and Siemens Gamesa Renewable Energy from Belgrade.

Prepared by Milena Maglovski

Serbia on a Mission to Decarbonize Energy Sector

Photo-illustration: Unsplash (waldemar)

Despite facing numerous challenges, Serbia remains committed to decarbonizing its energy sector, as demonstrated by amendments to the Energy Law and significant investments in renewable energy sources. We spoke with Rade Mrdak, Advisor to the Minister of Mining and Energy for Renewable Energy Sources, about the significant steps Serbia has taken in its energy transition and its plans for the future.

Q: Amendments to the Energy Law were adopted recently, but the public is still not fully informed about the details. What are the most important new provisions, and how will they affect citizens and the economy?

Photo: Nenad Kostić

A: The amendments to the Energy Law represent a significant step towards modernizing our energy sector and aligning it with European regulations. Firstly, the decades-long ban on building nuclear power plants has been lifted, opening the possibility for nuclear energy to be reconsidered as a legitimate and stable source, particularly important in the decarbonization process. Furthermore, key European regulations related to electricity market integration have been transposed into national law. This sets the conditions for linking our market with neighboring and broader European markets, which means greater competition, more secure supply, and better conditions for end-users.

It is also important to highlight the introduction of European mechanisms for crisis cooperation, such as rules on risk preparedness and emergency coordination. In times of energy instability, such regional coordination means we will not be isolated but part of a wider energy security system. The law also recognizes new roles for consumers. The concept of the active customer and citizen energy communities has been introduced, encouraging more active public participation in the energy transition. Additionally, for the first time, the law defines the concept of energy poverty and introduces protection mechanisms for vulnerable groups, giving it an important social dimension.

Finally, the law introduces a legislative framework for the use of hydrogen and recognizes the potential of biomethane as a key factor in decarbonizing the gas sector. All these changes contribute to a just and sustainable energy transition while ensuring a secure and reliable supply for citizens and businesses.

Q: At the Kopaonik Business Forum, you announced that Serbia plans to reach 3.5 GW of capacity from renewable energy sources by 2030. What are the main steps and strategies outlined to achieve this goal?

A: Serbia is already well on its way to achieving this goal, with the key strategies being:

Private investment through auctions – through the auction system, we plan to activate at least 1,300 MW of new capacity. The first two auctions have already secured 1,200 MW, which is significantly more than the planned 850 MW for those two rounds. This approach ensures competitiveness and encourages new private investments in the renewable energy sector.

EPS as a key player – Elektroprivreda Srbije (EPS) has a central role in greening the energy sector. We are currently working on major projects, including 1,000 MW of self-balancing solar power plants with a 200 MW battery storage system, as well as the Morava and Kolubara solar plants, which have a combined capacity of 120 MW. The first wind and solar capacities are also nearing completion, such as the Kostolac wind farm (66 MW) and the Petka solar plant (10 MW).

Citizen and business capacity – we also count on installations by individuals and businesses. Currently, we have approximately 95 MW of private production, and we estimate that this could increase to at least 300 MW by 2030.

By combining these factors, along with potential commercial projects and a third auction round, we believe we will achieve the goal of 3.5 GW from renewable sources by 2030.

IN FOCUS:

Q: The second round of renewable energy auctions has been successfully completed. What is your assessment of the results, and when can we expect the third round of auctions? Also, are higher quotas planned compared to previous ones?

A: The second round of renewable energy auctions was very successful. A total of 645 MW was awarded across 10 new power plants, significantly exceeding the previous quotas. It is imperative to note that this round saw the successful implementation of a mixed auction model for the first time, where not only the price but also the investor’s readiness to offer capacity to the guaranteed supplier for public supply needs was taken into account. This approach ensured that all electricity supported through these auctions remains on the domestic market, further strengthening Serbia’s energy security.

The bids were highly competitive, with prices ranging from 53.59 to 68.25 euros/MWh for wind farms and from 50.9 to 58 euros/MWh for solar power plants, indicating strong interest and market seriousness. We also managed to attract investors not only from Serbia but also from countries such as China, Spain, and France, which further confirms that Serbia has laid the foundations for a long-term and sustainable energy transition.

The third auction round has not yet been officially announced, but we can expect it to proceed in line with our energy transition targets. As for quotas, we are guided solely by the three-year incentive plan, which will determine future auction quotas.

Q: With increasing renewable capacity, there is a growing risk of the cannibalization phenomenon, where surpluses of green energy lead to falling prices. How does Serbia plan to respond to this threat and protect market stability and investment?

Photo-illustration: Unsplash (anton-dmitriev)

A: Serbia is not yet seriously affected by market cannibalization, but early signs of this phenomenon are already emerging, particularly during weekends and days with a high number of sunshine hours when system demand is low. At such times, there is a surplus of electricity from solar power plants and a short-term drop in prices, which could impact the sustainability of investments in renewables.

The most effective way to mitigate the effect of cannibalization at this stage is by increasing the flexibility of the power system, primarily through the development of storage capacities. Serbia has already recognized this need and, through recent amendments to the Law on the Use of Renewable Energy Sources (ZKOIE), has introduced an obligation for investors who do not wish to wait for grid connection to provide storage capacities equivalent to 10 percent of their plant’s installed capacity. This encourages the development of infrastructure that supports system balancing.

Furthermore, the construction of large pumped-storage hydroelectric plants is planned, primarily the Bistrica RHPP, with a capacity of around 650 MW, which will be a key facility for balancing production from large new RES capacities and ensuring energy stability.

Alongside this, we are developing a project for a large solar park with a capacity of 1 GW and 200 MW of battery storage. These investments will enable Serbia to use surplus solar energy during critical hours after sunset, when demand spikes, directly alleviating the effects of cannibalization.

Of course, storage is not the only solution. Flexible consumption, meaning increased consumer involvement in system balancing, can also help mitigate this effect. Work is already underway on this, and further efforts will continue through the development of active consumers and aggregators, who will play a key role in adapting consumption to market conditions.

Q: At recent press conferences, you noted that the Energy Development Strategy for the first time explicitly recognizes the importance of hydrogen. The Energy Law amendments also foresee the adoption of a special program for its development and use. What is the outlook for hydrogen in Serbia, and what are the Ministry’s next steps?

A: The Energy Development Strategy to 2040, with projections to 2050, for the first time explicitly recognizes hydrogen as an important part of Serbia’s future energy system. The document outlines the key development directions, and the next step is to draft a dedicated program for the development and use of hydrogen, which will elaborate on the strategic goals, propose concrete measures, and set out an implementation timeline.

The Ministry of Mining and Energy has already taken significant steps in this direction. Technical assistance has been activated through the EU’s IPA program, and the process is underway to obtain European Commission approval for comprehensive regulatory support. This support will enable the preparation of all necessary regulations, standards, and planning documents required to integrate hydrogen into Serbia’s energy and industrial systems.

Currently, the hydrogen market in Serbia remains small and is in its early stages of development. It is mainly produced by companies like NIS and Messer for their own use, primarily from fossil sources. Technologies for producing, storing, and distributing hydrogen, mostly green hydrogen, remain very expensive, limiting their wider application.

That is why the current focus is on creating regulations that will enable pilot projects and commercial development when conditions are right, as well as encouraging the domestic scientific community and innovation sector to engage in developing technologies that could secure Serbia a place in this value chain.

In the long term, Serbia sees hydrogen as an important tool for decarbonizing industry and transport, as well as for balancing a system with a high share of renewables. However, this is a process that requires a clear vision, gradual development, and international cooperation- and that is precisely the path we are taking.

Q: Besides solar and wind, which are currently the dominant topics, what are the Ministry’s plans regarding other renewable sources such as geothermal energy or biomass? How does Serbia plan to diversify its energy mix in the coming period?

A: Biomass for heating, especially wood biomass, remains the most prevalent renewable energy source in Serbia and accounts for more than half of total RES consumption in the country. It is mainly used in households for individual heating, but it is increasingly recognized in district heating systems.

In this context, the Ministry, together with international partners, particularly with support from KfW Bank, has already implemented projects to convert heating plants from fossil fuels to biomass in several municipalities, such as Priboj, Mali Zvornik, Novi Pazar, Majdanpek, and others. These projects have significantly reduced harmful gas emissions and improved energy efficiency in local communities.

Additionally, the Ministry has adopted a Rulebook on technical and other requirements for solid fuels from wood biomass placed on the Serbian market, which is an important step in consumer protection. Standardizing the quality of pellets, briquettes, and firewood enables households to know what they are purchasing, get more energy per unit of volume, and achieve significant savings during the heating season.

Regarding biogas and biomethane, the Ministry is working on establishing a regulatory framework for developing the renewable gas market. The focus is on introducing certification, defining sustainability, and creating conditions for injecting biomethane into the existing gas grid. These sources will be significant in rural and agricultural regions.

The goal is for Serbia to develop a diverse and more resilient energy mix by the end of the decade, incorporating a wider range of RES technologies, with biomass, as a locally available and cost-effective resource, playing an essential role.

Interview by Milena Maglovski

While Dust Blows Across Local Construction Sites – China Erects Protective Domes

Photo-illustration: OpenAI

After a heatwave brought scorching temperatures, drought, and stifling air with not a breath of wind, the Balkans were hit this week by a severe storm.

Photo: EP

In Belgrade, the public’s attention was drawn to videos and photos that quickly spread across social media and news outlets — in New Belgrade, the wind toppled a crane at a construction site, while foam insulation and various building materials were seen flying from others. Those who happened to be nearby could hardly distinguish the sky from the sudden clouds of dust stirred up by the wind.

At that moment, I was in Rakovica. I had a clear view of a construction site on a nearby hill and watched as the wind kicked up dust, which soon reached me.

Meanwhile, social networks and international media were sharing a completely different image from a construction site — in China. In the city of Jinan, a massive 50-meter-high inflatable dome was erected, covering an entire construction site spanning 20,000 square meters.

The dome is designed to contain dust and noise within the site instead of polluting the surrounding area. Its appearance resembles the inflatable enclosures used over football fields.

This innovative approach to construction uses a negative pressure and filtration system that prevents dust from escaping the dome. At the same time, an advanced ventilation system ensures clean air for the workers inside.

What makes the dome even more efficient is the transparent material it’s made of, allowing daylight to pass through and reducing the need for artificial lighting. Additionally, the dome reduces noise, which usually disturbs the daily lives of people — and animals — nearby.

Its use could become widespread in the future, given that it can be assembled and dismantled relatively quickly, and it can be manufactured in various sizes to suit a wide range of infrastructure and construction projects.

At a time when urbanization and construction are more prevalent than ever, and the environment increasingly polluted, such innovative solutions represent an important step toward protecting both human health and nature — showing that development and environmental care can go hand in hand.

Katarina Vuinac

Skopje in the Spotlight of Green Energy and Education

Photo: RESET

The regional meeting titled “Energy Transition and Human Capital Development: Action Plan to Support Education and Training in the Renewable Energy Sector” was held on July 3–4, 2025, in Skopje, North Macedonia.

The event brought together representatives from the vocational education and training (VET) sector, energy industry, education ministries, qualification agencies, chambers of commerce, and the private sector from six Western Balkan economies. The main objective was to discuss and adopt the regional Action Plan for education and training in the field of renewable energy, with the aim of defining concrete actions the education sector should undertake in support of the energy transition.

During the event, distinguished energy sector experts shared their perspectives on the challenges of the green transition.

Photo: RESET

Dr. Eng. Alexandru Mureșan, CEO of the company Renergia and lecturer at the Technical University of Cluj-Napoca (Romania), referred to education as the “secret weapon” of the European Green Deal. Speaking from the perspective of a former EUSEW Young Energy Ambassador, he emphasized that every euro invested in the green transition must be accompanied by a corresponding investment in education and capacity building—across all levels of society. He highlighted that a successful, inclusive, and fair transition requires not only a qualified workforce but also broad societal support and behavioral change toward sustainable resource use. Education, he stressed, remains the most effective and sustainable strategy for tackling the complex challenges of the energy transition.

Viktor Dimitrievski, representative of EVN Macedonia, spoke from the standpoint of a distribution system operator on the growing demand for qualified personnel due to the rapid development of the RES sector. Over the past two years, RES capacities in North Macedonia have doubled, further increasing the need for training and employment. Dimitrievski presented EVN’s recruitment optimization strategies, as well as experiences with dual education programs that connect high school students and companies through practical training.

More:

Aleksandar Macura, external expert, presented the draft Regional Action Plan for education and training in the RES sector. The plan was developed based on an analysis of the obligations of Western Balkan countries, the current state of the education system, and survey results conducted among teachers regarding their needs in the area of sustainable development. Following the presentation, an interactive workshop was held, during which concrete measures and activities were developed. The final version of the Action Plan will be created after consolidating the comments and suggestions collected during the meeting.

Ilgin Varneke, advisor at GIZ, presented the Regional Climate Partnership between the Western Balkans and Germany, aimed at supporting the region in aligning with the Paris Agreement, the European Green Deal, and the Green Agenda for the Western Balkans. According to her, Germany has committed to providing up to one billion euros in grants and development loans by 2030, along with an additional 500 million euros in promotional loans for the energy sectors of the WB6 countries. This support includes projects in solar energy, sustainable transport, technical assistance, and reforms in the education and climate policy sectors. A key focus will be on the development of skills and knowledge as the foundation of a successful energy transition.

Photo: RESET

The meeting was concluded by Tina Šarić, Director of the ERI SEE Secretariat, who emphasized that the energy transition is already placing—and will continue to place—enormous pressure on the education and economic systems. The education sector must react swiftly to current needs while strategically planning for the long term—10, 15, even 20 years ahead—to prepare society for upcoming challenges. Teachers have a crucial role in this process, not only as transmitters of technical knowledge in the RES field but also as promoters of sustainability and environmental awareness. The Regional Action Plan is tasked with identifying these needs and proposing sustainable steps toward addressing them.

Finally, Ms. Šarić underscored the importance of regional cooperation, noting that although we face specific local challenges, we all share one planet—with the same responsibilities and rights to care for its future.

The event was jointly organized by the Education Reform Initiative of South Eastern Europe (ERI SEE) and the German Agency for International Cooperation (GIZ), as part of the RESET – Renewable Energy Services in Education and Training project. The RESET project is implemented by ERI SEE within the broader regional program Green Agenda: Decarbonisation of the Power Sector in the Western Balkans, led by GIZ and financed by the German Federal Ministry for Economic Cooperation and Development (BMZ).

Nevena Đukić

The Future Is Green – Japan’s Climate Goals

Photo: Pixabay/Thomas-Ulrich
Photo: Courtesy Akira Imamura

In light of increasingly urgent global challenges – from climate change and the preservation of natural resources to the ongoing energy transition – Japan stands out as a country that successfully balances technological progress, economic stability, and sustainable development.

With this in mind, we spoke with His Excellency, the Ambassador of Japan to Serbia, Mr Akira Imamura, about the strategic directions of Japan’s climate and energy policies, the concrete measures being taken to achieve carbon neutrality, and the potential for cooperation between Japan and Serbia in the fields of circular economy, environmental protection, renewable energy, and the development of the electric vehicle market.

In this interview, we also explore how Japanese initiatives contribute to the improvement of local communities throughout Serbia and the strengthening of the friendship between our two nations.

Q: Japan has outlined ambitious climate objectives, aiming to achieve carbon neutrality by 2050 and to reduce greenhouse gas emissions by 46 percent by 2030 compared to 2013 levels. Could you please elaborate on the specific measures being taken to meet these targets?

A: While aiming at achieving net-zero emissions by 2050, Japan intends to achieve a stable energy supply and economic growth simultaneously. This requires significant acceleration towards structural changes in the energy and industrial sectors, as well as undertaking bold investments in innovation. We are shifting to decarbonized power sources such as renewable energy and nuclear power, which will help increase energy self-sufficiency, at the same time promoting thorough energy savings. To finance the Green Transformation (GX), the public and private sectors are expected to invest a total of more than 150 trillion yen (approximately 920 billion euros) over the next 10 years. As a first step, the government is issuing Climate Transition Bonds to raise 20 trillion yen (approximately 120 billion euros) for investments in areas such as promoting a hydrogen society, decarbonizing manufacturing industries, developing next-generation storage batteries, and establishing domestic supply networks for renewable energy. Going forward, we will introduce a “growth-oriented carbon pricing framework” to increase the added value of GX-related products and businesses.

IN FOCUS:

Q: What are the key policies and initiatives Japan has implemented to preserve its natural resources—such as forests, water bodies, and biodiversity? In your view, how might these practices be adapted and applied within the Serbian context, particularly for the protection of vulnerable ecosystems?

A: The world is currently facing three crises: climate change, biodiversity loss, and pollution. Modern civilization is unsustainable, and transformation is inevitable. The goal we should aim for is a “circular symbiotic society” built through efforts to simultaneously achieve a nature-positive (halting and reversing nature loss), net-zero, and circular economy. An example of such an initiative, which may apply to Serbia, is ecosystem-based disaster risk reduction (eco-DRR). This concept involves utilizing ecosystems as buffers to protect people’s lives and reduce disaster risks. In Japan, more than half of the forest is protected to prevent disasters such as landslides and floods. They also contribute to mitigating climate change, biodiversity conservation, and recreational services. Based on this experience, the Japan International Cooperation Agency (JICA) is supporting the promotion of eco-DRR in many countries, including those in the Western Balkans.

Q: Japan is often cited as a model for successfully balancing economic growth, energy security, and decarbonization goals. What elements of Japan’s approach do you believe could be meaningfully transferred to Serbia’s path toward sustainable development?

Photo: Pixabay/Jacqueline Macou

A: One of the things I consider important for Serbia’s sustainable development is the transition to a circular economy. It contributes to solving social issues related to climate change, biodiversity loss, and environmental pollution by minimizing resource consumption and reducing waste generation. It should be designed in a way that strengthens industrial competitiveness, economic security, and the well-being of people. One example is plastic recycling. Japan has been implementing measures since 2022 under the “Law on the Promotion of Resource Circulation of Plastics” to promote efforts toward plastic resource circulation across all stages of the product lifecycle—from design to waste disposal—in accordance with the 3R (reduce, reuse, recycle) + Renewable principles, involving all relevant stakeholders. Concrete results have been achieved in many areas, including the food industry, which has successfully reduced the amount of plastic used in packaging.

Q: The Embassy of Japan in Serbia has been actively engaged in impactful donor initiatives, including support for public utility companies such as “Drugi oktobar” in Vršac and assistance to the Vojvodina Food Bank. How would you assess the significance of these humanitarian contributions in strengthening bilateral relations? Are there any new projects planned for the near future?

A: They are small-scale projects called GGP (Grant Assistance for Grassroots Human Security Projects). Human security is a concept that encourages sustainable, individual self-reliance and social development through protection and empowerment. It focuses on every human being and aims to protect people from the wide-ranging and serious threats to their lives, livelihoods, and dignity, enabling them to reach their full potential. Based on this concept, GGP has been of great significance, especially in rural areas of Serbia, as it is directly linked to improving people’s lives in areas such as the environment, disaster prevention, education, health, and social welfare. The two projects you mentioned are related to environmental protection and the circular economy, which we discussed earlier. GGP has also contributed to the capacity building of local governments, schools, hospitals, NGOs, and other organizations by directly providing them with necessary equipment and facilities. As a result, GGP projects have become a symbol of friendship between the local people in Serbia and Japan. The Embassy receives applications for GGP from municipalities throughout Serbia every year, and we implement approximately 10 projects annually. This month, I plan to attend GGP handover ceremonies in Plandište and Zrenjanin and look forward to meeting with the local people there.

Interview by Milena Maglovski

Heatwaves Drive Up Electricity Prices in Europe – Solar Power Softens the Blow

Photo-illustration: Pixabay (Thomas)

Heatwaves brought record temperatures to Europe in June and July 2025, with some areas exceeding 40 °C, posing serious challenges for the electricity system due to a sudden spike in power consumption.

The biggest contributor to the surge in demand was air conditioning use – during the hottest days, electricity consumption rose by up to 14 percent. At the same time, thermal power plants experienced outages, further straining the grid and leading to a significant increase in electricity prices. In some countries, prices even tripled, surpassing 400 euros per megawatt-hour during evening hours, according to EMBER.

Compared to June 24, average daily electricity prices during the heatwave rose by 15 percent in Spain, 106 percent in Poland, 108 percent in France, and as much as 175 percent in Germany.

Heatwaves also caused power lines to overheat, which in Italy led to failures and further hindered cooling at thermal power plants. As a result, many facilities had to reduce capacity, and some were forced to shut down entirely. In France and Switzerland, nuclear power production was also reduced due to elevated air and water temperatures, which hampered reactor cooling. In France, 17 out of 18 nuclear plants faced operational restrictions.

More:

Heatwaves and Solar Energy

Despite the challenges, June 2025 was the most productive month in EU history in terms of solar energy generation – 45 TWh were produced, 22 percent more than in the same month the previous year.

In Germany, at the peak of the heatwave, solar energy was generating up to 50 GW, covering nearly 40 percent of the country’s total electricity consumption.

Although solar power significantly contributes to supply during the day and helps ease pressure on the grid, the problem arises in the evening when production drops but demand remains high – pushing prices upward. That’s why key solutions include the development of battery storage, more flexible consumption, and dynamic pricing, to enable excess solar energy to be used even after sunset.

Heatwaves, which are expected to become more frequent, clearly show that without smart grid management and investments in renewables – along with storage capabilities and better interconnections – there can be no stable supply or energy security in the face of climate extremes.

Energy portal

Lithuania Considers Returning to Nuclear Energy – a Growing Trend Across Europe

Photo-illustration: Unsplash (reza bina)

For some time now, Europe has been increasingly turning to nuclear energy as a pillar of energy security and decarbonization. Lithuania is also taking concrete steps in this direction. The government of this Baltic state has established a working group to explore the potential reintroduction of nuclear energy into the national energy mix – with a particular focus on small modular reactors (SMRs), which are increasingly seen worldwide as a technology of the future.

In the past century, Lithuania operated two large Soviet-designed RBMK reactors, the same type used in Chernobyl. At the time, the plant supplied around 70 percent of the country’s electricity. However, as part of the conditions for joining the European Union, Lithuania was required to shut down both reactors, as this type was considered a safety risk under Western standards. The first reactor was shut down in 2004, and the second followed in 2009.

More:

The newly formed working group will include experts from the decommissioning process of the former plant, as well as international partners, with the goal of preparing a detailed analysis and strategic plan. According to World Nuclear News, a final decision on the construction of SMRs could be made by 2028, with the first reactor becoming operational by 2038.

In addition to France, which has had a well-established and robust nuclear sector for decades, more and more European countries are announcing new projects in this field. Poland, the Czech Republic, Romania, Hungary, and the Netherlands are planning to build new reactors to address growing electricity demand and the need for decarbonization. SMRs have become particularly attractive to smaller countries, as they allow for gradual development, require lower initial investment, and are easier to integrate into existing energy infrastructure. At a time when the European continent faces a domestic energy production deficit and mounting energy security challenges, nuclear power is regaining strategic importance. 

Energy portal

An Expedition for a New Life of Plastic Waste

Photo-illustration: Pixabay (sergeitokmakov)

Plastic Odyssey is a global initiative dedicated to addressing the issue of plastic pollution in the world’s most affected regions, with a particular focus on combating marine and ocean plastic contamination. The organization’s mission is carried out using a ship that functions as a mobile recycling unit, traveling to countries facing challenges in plastic waste management and utilizing recycling technology to convert plastic waste into useful materials.

Over eight years, this nonprofit organization has built a global network of recycling solutions, helping prevent plastic waste from reaching the oceans.

Now, the organization has set a new goal: restoring biodiversity in protected areas impacted by plastic pollution, beginning with 50 priority sites identified by the United Nations Educational, Scientific, and Cultural Organization (UNESCO). To support this, they have launched a unique fund aimed at raising substantial financial resources over the next few years.

“These areas act as natural traps for plastic, accumulating waste at concentrations up to 400 times greater than the Great Pacific Garbage Patch. Their extreme remoteness has long made cleanup nearly impossible—until now,” the organization announced.

Photo-illustration: Pixabay (Hamsterfreund(

In February of this year, Plastic Odyssey announced the creation of the Plastic Odyssey Fund, a nonprofit public corporation headquartered in San Francisco. One of their key messages reads: “Every minute, 19 tons of plastic waste enter the ocean… We, the citizens of the world, have the means to stop this disaster.”

They also plan to foster international expansion by mobilizing resources and accelerating their impact through engagement with philanthropic organizations, foundations, corporate donors, and governmental actors.

Throughout 2025, Plastic Odyssey will host a series of events across the Americas to deepen engagement within the ocean-focused community and raise awareness about its mission.

This global initiative combines mechanical plastic removal, mobile recycling units, and scientific research to make large-scale cleanup feasible. According to the organization, plastic removal costs have been reduced to just 10 dollars per kilogram.

The organization uses sail-powered cleanup vessels in its missions, designed to operate in fragile ecosystems and prevent further breakdown of microplastics. To support efforts aimed at restoring marine biodiversity, they are launching a six-year campaign to raise 30 dollars million.

Their website, plasticodyssey. org, has published an interactive map, accessible through the “Follow the Expedition” feature. The map displays travel routes, land-based plastic waste, and the regions most affected by plastic pollution.

IN FOCUS:

Microfactories and Education

After two years of partnership in supporting the expedition, the team from another similar organization, Delfingen, is joining the on-the-ground projects developed by Plastic Odyssey Factories. In the Philippine cities of Cebu and Manila, they launched two microfactories to transform island waste into new value. Each site includes two containers equipped with machines necessary for converting plastic waste into new materials or objects.

During their visit at the end of last year, training sessions for local entrepreneurs were held in the onboard Laboratory. The first training lasted three days and involved ten entrepreneurs from various sectors, while the second session gathered four participants. These shipboard Laboratories proved highly successful, especially among participants who already had a solid background in recycling and were able to expand their knowledge further.

The World’s Most Polluted Beach

Last year, Plastic Odyssey teams cleaned the world’s most polluted beach, located on one of the largest islands—Pitcairn. A 2015 analysis, published two years later, revealed that eight tons of plastic had washed up on its shores—the highest plastic density ever recorded globally. The 38 km² island hosts more than 38 million pieces of plastic along its coastlines, with an estimated daily influx of 3,500 to 13,500 new plastic items.

To address waste removal without damaging the coral reef, they used a raft to transport large bags from the shore to the ship, and parachutes lifted the plastic above the water when waves were too strong. Over seven days, with 25 people, the team removed 6,000 kilograms of plastic waste dating back to 2019, along with another 3,000 kilograms accumulated afterward. All nine tons were subsequently recycled onboard the floating Plastic Odyssey laboratory.

Prepared by Jasna Dragojević

Read the story in the new issue of the Energy portal Magazine SUSTAINABLE MOBILITY

Corn Husks as a Source of Inspiration and Practicality

Photo: Courtesy of Dušica Medved

Natural materials have long inspired people, and with growing environmental awareness, we increasingly strive to utilize them in diverse and purposeful ways. Corn husks are one such material, most commonly used as livestock feed or compost for eco-friendly fertilizer. Yet, their usefulness does not end there. This story reveals how corn husks can be used innovatively and unexpectedly.

Winter is the season most often dedicated to weaving baskets, providing the ideal time for this process. During the colder months, women have more time to focus on weaving, preparing the husks, and dyeing them, creating beautiful and durable handcrafted bags. These corn-husk bags, originally from Međimurje, Croatia, have even made their way to Dubai.

Several women from the Women’s Association of Nedelišće are on a mission to bring tradition into the modern age. Dušanka Medved, president of the Association, shared with Energetski Portal Magazine the details of how these bags are made, how long they last, and much more.

Photo: Courtesy of Dušica Medved

Preparation begins in the autumn during the corn harvest, when supplies of husks are replenished. In Međimurje, the husks are also referred to as luščije, and they are usually prepared two years in advance, since the next harvest is never guaranteed and the basket-weaving season must always be ready.

“After collection, the corn husks are dried for two to three days before being prepared. We need a wooden mold, small nails, and pliers for weaving. First, we weave the base structure made of strips, followed by the basket body. Then the edges are trimmed, and finally, the handles are woven. The completed bag is left to dry in a warm place for two days before it’s removed from the mold. The finished baskets are then placed in sulfur,” says our interviewee.

She notes that it’s essential to soak and drain the husks properly before weaving, as otherwise they could break during the process. Sulfur is used to eliminate harmful organisms and prolong the basket’s durability while acting as a natural bleaching agent. Fabric dyes are used for dyeing: the water is brought to a boil, the dye is added along with the damp husks, and the process continues for about two hours to allow the color to penetrate deeply into the fibers. Afterward, the husks are thoroughly rinsed to avoid staining hands or clothing.

IN FOCUS:

A Fusion of Tradition and Ecology

These fashion items are made entirely from natural materials—no glue is involved. Each basket requires about five kilograms of corn husks. Flowers, made either from the husks themselves or from fabric, can be added during the weaving process.

Our interviewee also shares that finding quality corn husks is increasingly complex because traditional corn varieties are rarely grown. Hybrid corn has shorter ears and leaves, which break easily and are not as soft or as suitable as the older varieties. Additionally, it must be harvested by hand, which is now less common.

The women of the Nedelišće Association craft baskets in various sizes and shapes—from the smallest to the largest, square to round. A basket can last up to 15 years if kept dry and protected from moisture. If it gets wet, it should be air-dried.

There is interest in this craft, though some try and give up. They’ve trained children in primary and secondary schools and even held a workshop at a museum. They were surprised to find that boys showed more interest than girls.

Their goal is not just to sell baskets, but also to demonstrate the making process, so they always bring their tools along.

Last year, they held a basket festival and sold every last piece. The skill of crafting utilitarian items from corn husks in the Međimurje region has become the eighteenth element of intangible cultural heritage in this area, officially listed in the Register of Cultural Goods of the Republic of Croatia with permanent protection status.

Prepared by Jasna Dragojević

Read the story in the new issue of the Energy portal Magazine SUSTAINABLE MOBILITY

Bioplastics and Algae – A New Foundation for Habitats Beyond Earth

Photo-illustration: Unsplash (nicolas-lobos)

I wouldn’t trade my planet for any extraterrestrial habitat. Still, for some powerful individuals, it seems that even the most beautiful places on Earth are no longer exciting enough – so their gaze (and budget) increasingly turns toward Mars. Why humanity is so determined to colonize the red planet remains an open question. What is certain, however, is that it won’t happen any time soon – the technology we currently possess is still not up to the task of surviving in such extreme conditions.

One of the key questions when thinking about long-term human presence beyond Earth is how we will ensure sustainable living conditions. For instance, transporting construction materials from Earth is logistically complex and economically unsustainable – and the same goes for resources needed to grow plants, microorganisms, and other life forms that make up the basis of any ecosystem.

How do we create a closed system that not only protects humans from extreme conditions but also allows for the cultivation of organisms we depend on – from food to oxygen? This question is increasingly shifting the focus from traditional engineering solutions to approaches inspired by biology.

That’s why a recent study by scientists at Harvard’s School of Engineering and Applied Sciences caught my attention – not only for its innovative use of bioplastics and algae in extreme conditions, but also for the shift in perspective it represents: instead of bringing everything we need with us, can we grow some of the necessary resources on-site, in conditions similar to those on Mars?

The experiment, led by Professor Robin Wordsworth’s team, successfully grew algae under Mars-like conditions using bioplastic as the foundation for a closed habitat. Specifically, they used Dunaliella tertiolecta, known for its resilience and ability to perform photosynthesis under harsh conditions. The algae grew inside a chamber made of polylactic acid, a bioplastic that allows light to pass through while blocking harmful UV radiation.

Photo-illustration: Pixabay

The significance of this experiment is multifaceted. First, it demonstrates that it’s possible to create a controlled environment suitable for photosynthetic organisms even at a pressure of only 600 pascals – equivalent to the atmosphere on Mars. Second, the chamber successfully stabilized liquid water, a major challenge in low-pressure conditions. Third, and most importantly, the idea that bioplastics can be produced locally using algae opens up the possibility of a closed-loop system – where the habitat and the organisms within it support each other’s survival.

In this context, bioplastics are not just substitutes for industrial materials but a potential foundation for sustainable infrastructure beyond Earth. The concept departs from the traditional engineering approach based on transporting and storing materials: here, we’re talking about a system that grows and regenerates locally through biological processes.

Interestingly, researchers didn’t stop with Mars. The next step is to test these systems in a vacuum, which would make them applicable on the Moon and in deep space. In parallel, they are developing a functional closed-loop system that could integrate production, growth, protection, and adaptation into a single efficient whole.

It’s important to note that such technologies are not being developed solely for future space colonization. Many of the principles behind them – circular systems, local production, reduced dependence on external resources – are directly applicable to sustainability efforts on Earth.

These studies don’t offer final solutions, but they do represent tangible steps toward self-sustaining systems. In that sense, bioplastic habitats with algae may not be the first homes on Mars – but they could form a vital foundation for rethinking how we build and sustain life anywhere in the Solar System.

Milena Maglovski

International Plastic Bag Free Day: Small Packages, Big Problem

Photo-illustration: Unsplash (Naja Bertolt Jensen)

Every year, on July 3rd, International Plastic Bag Free Day is marked across the world. It was launched in 2009 by environmental organizations and later supported by the global movement Break Free from Plastic, founded in 2016. The aim of this day is to raise awareness of the harm caused by single-use plastics to nature and human health, and to encourage societies to move toward sustainable solutions.

Although plastic bags and sachets are used for only a few minutes, they remain in the environment for decades—or even centuries—breaking down into microplastics that pollute soil, water, and air, threaten plant and animal life, and end up in the food chain.

Regulations

The first major steps in the fight against plastic bags in Europe were recorded in the early 2010s. Italy became the first EU member state to ban lightweight plastic bags in 2011. France followed in 2016 by banning free single-use plastic bags, while many other countries, including Serbia (since 2020), introduced charges. In Ireland, the introduction of a 15-cent tax back in 2002 reduced plastic bag use by more than 90 percent.

According to the 2015 EU directive, all member states were required to reduce the consumption of lightweight bags to below 90 per person annually by 2019, and below 40 by 2025. The introduction of bans, taxes, and education campaigns led to a measurable decline in use—with more and more consumers switching to cloth totes and reusable bags, which have also become a stylish expression of sustainable living.

The Sachet Economy

While public attention is often focused on grocery bags, small plastic sachets as a form of packaging have become a quiet but destructive part of the problem. In many lower-income countries, they are a daily reality. They are used to package daily doses of shampoo, coffee, detergent, and snacks, and target consumers who cannot afford larger quantities. However, behind this “affordability” lies a deep injustice, as highlighted in more detail by Break Free from Plastic.

For example, in the Philippines, sachets make up as much as 52 percent of residual plastic waste, while local waste management systems cannot cope with such amounts of non-recyclable plastic. Traditional habits such as buying small quantities in reusable glass bottles—known as “tingi”—have been displaced by marketing from multinational corporations.

Globally, more than 855 billion sachets are discarded annually, and they are most often used in poorer communities—not by choice, but because alternatives are not accessible. Sachets are made of multilayered materials and are virtually impossible to recycle. Local solutions—landfilling, incineration, or using them as fuel in cement factories—release dioxins and toxic substances that cause health problems.

Informal waste pickers, who recycle up to 60 percent of plastic waste, work in hazardous conditions without protection, while local governments—especially in poorer countries—spend up to 20 percent of their budgets on waste management, according to World Bank data.

Both bags and sachets symbolize a culture of consumption. Sustainable solutions do not lie in “bioplastics” or “plastic neutrality,” but in reuse, refilling, and eliminating unnecessary packaging.

On International Plastic Bag Free Day—and every day—it is important to recognize:
the point is not to make sachets better, but to make them unnecessary.

Energy portal

Access to Electricity in 2025 Shows Progress, But Universal Access by 2030 Still Unlikely

Foto-ilustracija: Pixabay

Global access to electricity improved in 2025 compared to 2022, but the progress remains insufficient to achieve universal access by 2030. The report Tracking SDG 7: The Energy Progress Report 2025 reveals that nearly 92 percent of the world’s population has basic access to electricity. However, more than 650 million people still lack this access.

In terms of clean cooking technologies, there has been progress, though at a slower pace than during the 2010s. This slowdown is attributed to the COVID-19 pandemic, energy price shocks, and the debt crisis, according to the International Renewable Energy Agency (IRENA).

This report was published by the agencies responsible for monitoring Sustainable Development Goal 7 (SDG 7): the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO).

Decentralized Solutions for Rural Communities

Decentralized renewable energy sources, such as mini-grids and off-grid solar systems, offer cost-effective, rapid, and efficient solutions for delivering electricity to rural communities. This is particularly significant, as the majority of people without grid connection live in remote, unstable, and impoverished regions.

These solutions also support improved access to clean cooking. IRENA reports that about 1.5 billion people in rural areas still lack access to clean cooking technologies. Off-grid solutions, such as household biogas systems and mini-grids enabling electric cooking, can significantly reduce the negative health impacts of indoor air pollution. Over two billion people continue to use firewood and charcoal as primary cooking fuels. If the current trend continues, only 78 percent of the global population will have access to clean cooking by 2030.

More:

Regional Disparities in Electricity Access

Regional disparities remain pronounced, particularly in developing countries. In sub-Saharan Africa, the average installed capacity of renewable energy per capita is only 40 watts, compared to over 1,100 watts per person in developed nations. This region is home to 85 percent of the global population without electricity access, and four out of five families lack access to clean cooking technologies.

The lack of affordable financing continues to hinder progress and deepen regional inequalities, the report emphasizes. Stronger international cooperation between the public and private sectors is needed, especially to support sub-Saharan Africa. Necessary measures include financing reforms, increased availability of public capital, concessional funding, grants, risk mitigation tools, and improved national planning and regulatory frameworks.

This report will be presented to policymakers on July 16, 2025, during the High-Level Political Forum on Sustainable Development in New York, which monitors progress toward the Sustainable Development Goals.

Energy portal

When Food Waste Becomes a Resource

Foto-ilustracija: Unsplash (Waldemar Brandt)

Food waste presents a serious global challenge that goes beyond economic and environmental dimensions, pointing to a deep imbalance in the world. While millions of people go hungry, enormous quantities of food end up as waste. The United Nations has recognized this crisis and set the goal of Zero Hunger by 2030 as the Second Sustainable Development Goal (SDG).

According to UN data, today, two billion people worldwide do not have regular access to safe, nutritious, and sufficient food. If current trends continue, projections show that more than 600 million people will be chronically hungry by 2030. Although food waste is not the primary cause of these statistics, changing how food is managed, from production to consumption, could significantly contribute to reducing global hunger.

The World Wildlife Fund (WWF) points to the fact that in Europe, 50 million tons of fruits and vegetables are wasted every year solely because they are not the proper shape, representing an economic loss of 140 billion euros. On a global level, about 1.3 billion tons of food are wasted annually from farm to table. In our region, Serbia leads in the amount of food waste, with as much as 700,000 tons annually, while Croatia wastes 400,000 tons, and Slovenia 140,000 tons.

It is often mistakenly believed that organic waste has no significant environmental impact. However, if food is not appropriately managed, it does not become valuable organic fertilizer but ends up in landfills, emitting methane during decomposition – a greenhouse gas far more harmful than carbon dioxide.

IN FOCUS:

Although a significant portion of organic waste comes from households, food waste occurs throughout the entire supply chain, including production and retail. Retail chains frequently order excessive amounts of food, and high prices lead to many products remaining unsold by their expiration date. This issue garnered particular attention in Serbia a few years ago when campaigns were launched to raise awareness about food waste. A central focus was the Value Added Tax (VAT) law, under which a 20 percent VAT must be paid on donated food. This discourages retail chains from redirecting unsold but usable food to those who need it most. Consequently, it is often more cost-effective for companies to discard food rather than donate it.

Although the priority is to direct edible food to those who need it most, what can no longer be used for human or animal consumption can gain new value through the production of biofuels, thereby reducing both waste and greenhouse gas emissions simultaneously.

While many retail chains do not pay enough attention to the issue of hunger, the British retailer Sainsbury’s, in cooperation with its supplier RenECO, has found a way to reduce food waste and contribute to environmental goals simultaneously. This marks a complete change in their logistics fuel supply, specifically for heavy goods vehicles. Starting in March this year, 30 trucks in this retail chain will switch from diesel to biofuel derived from food waste. The biogas produced through this process will be used to create liquid biofuel suitable for heavy trucks. It is important to note that this process utilizes food that can no longer be donated or used for animal feed.

Estimates show that this will reduce annual carbon dioxide emissions by more than 3,000 tons, which the company highlights as equivalent to the yearly electricity consumption of over 1,900 households. Currently, these 30 trucks represent half of their fleet, but the company has set an ambitious goal: achieving net-zero emissions in its operations by 2035.

Prepared by Katarina Vuinac

Read the story in the new issue of the Energy portal Magazine SUSTAINABLE MOBILITY

Hydropower from Norway Crucial for All of Europe

Photo-illustration: Unsplash (American Public Power Association)

Norway generates as much as 90 percent of its electricity from hydropower, placing it among the most sustainable and energy-independent countries in Europe. Thanks to this model, the country plays a key role in Europe’s fight against climate change.

The importance of Norway for the rest of the continent was the focus of the HydroConnect research project, conducted by the Fraunhofer Institute for Energy Economics and Energy System Technology (IEE).

Norway is connected to the Netherlands, Denmark, Germany, and the United Kingdom via subsea cables, enabling it to leverage its flexible hydropower system.

Philipp Hertel, senior scientist at Fraunhofer IEE, explains that reliance on renewable energy sources increases the need for flexibility and energy storage within the power system — an area where Norway excels.

“Norwegian hydropower can respond rapidly to fluctuations in demand by exporting large amounts of electricity when wind and solar output in Europe is low, and importing electricity when there is surplus generation and prices are low. This ability to balance supply and demand makes Norway a key player in building a climate-neutral, interconnected European energy market,” said Hertel.

The analysis covered greenhouse gas emissions across Europe, electricity prices in Norway and other countries, and the environmental impacts of Norwegian reservoirs and river systems. Several scenarios were considered, including a sudden increase in electricity demand in Norway, the development of more offshore wind farms, the establishment of offshore energy hubs, and changes in the prices of energy carriers such as hydrogen.

More:

Extensive Database

Fraunhofer IEE utilizes a comprehensive database that includes hydropower plants and reservoirs across Europe. It contains data on more than 850 hydropower systems, over 2,800 individual plants, and around 3,600 reservoirs.

“In addition to technical system details, the database includes complex information on hydraulic interconnections and participation in cross-border markets, which is crucial for realistic simulation of hydropower behavior in our models — especially in terms of storage capacity and operational flexibility,” Hertel noted.

Benefits for the European Energy System

The analysis showed that adding 11 gigawatts of hydropower capacity in Norway, along with expanding interconnectors, could significantly reduce the need for additional investments across Europe. It could replace the need for about 70 gigawatts of additional capacity in solar power plants, electrolyzers, and batteries.

Furthermore, expanding hydropower in Norway would reduce overall system costs and help equalize electricity prices between Norway, continental Europe, and the UK.

Flexible hydropower is especially effective in mitigating price spikes during periods of low wind and solar generation.

Energy portal

After Technical Incidents and Sanctions, a New Opportunity for Paks II

Photo: Pixabay

The Paks II nuclear power plant construction project, which has faced numerous obstacles and technical delays for years, now has a significant opportunity to move forward following the decision by the Trump administration to lift some sanctions that had previously hindered its realization.

One of the earlier restrictions, part of a broader package of sanctions against Russia, involved a ban on cooperation with Russian state-owned nuclear companies, including the contractor for the Paks II project. On the technical side, the planned pouring of the first concrete has been postponed from 2025 to 2026, after an incident in which part of the reinforced concrete wall of the working pit collapsed. The Hungarian Atomic Energy Authority (HAEA) halted construction works on the southern section of Unit 5 on February 6 and compiled a detailed inspection checklist.

However, after thorough inspections, HAEA last week granted permission for the continuation of construction, under the condition that additional safety measures are implemented and constant monitoring of geotechnical conditions is ensured.

More:

Sanctions Eased for Civil Nuclear Energy

On June 27, the U.S. Department of the Treasury issued General License 115B, which allows certain transactions related to civil nuclear energy, including projects initiated before November 21, 2024. Although Paks II is not specifically mentioned, Hungary believes the project falls under the license’s scope, as it is an infrastructure initiative launched back in 2014. The license covers activities such as procurement and transportation of nuclear fuel, construction, and maintenance of facilities, but excludes cooperation with specific Russian financial institutions for projects launched after the specified date, as reported by World Nuclear News.

The U.S. decision to ease sanctions for civil nuclear projects opens a pathway for Paks II to proceed, giving Hungary political room to continue its cooperation with Russia and France in the energy sector. This could lead to the construction of two additional modern VVER-1200 reactors, which, according to the country’s plans, may be connected to the grid in the 2030s.

Energy portal

Slovenia Issues Ten-Year Sustainability-Linked Bond, Raises One Billion Euros

Foto-ilustracija: Pixabay

Slovenia has recently issued a ten-year sustainability-linked bond (SLB) on international capital markets in the amount of one billion euros, with a coupon rate of 3.125 percent and maturity on July 2, 2035. This is the first issuance of such bonds in Slovenia and in this part of the world, issued under the Republic of Slovenia’s Sustainability-Linked Bond Framework (the Framework). The bond thus carries a fixed coupon interest rate with a possible mechanism for increasing or decreasing the final coupon, depending on the achievement of the targets set out in the Framework. The key indicator is the total annual greenhouse gas emissions, according to the website of the Slovenian Ministry of Finance.

Sustainability Target 1.1: a reduction of total greenhouse gas emissions by 35 percent by 2030 compared to the baseline level from 2005.

Sustainability Target 1.2: a reduction of total greenhouse gas emissions by 45 percent by 2030 compared to the baseline level from 2005.

More:

Therefore, if Sustainability Target 1.1 is not achieved and Slovenia does not reduce its total annual greenhouse gas emissions by at least 35 percent compared to the 2005 level, the interest rate will increase by 50 basis points nine years after the settlement date, which will be July 2, 2025. Conversely, if Sustainability Target 1.2 is achieved, and emissions fall by more than 45 percent, the interest rate will decrease by 50 basis points.

Overall, the new bond applies an increase/decrease mechanism, whereby the final coupon payment is linked to Slovenia’s climate goal. According to the bond terms, the interest rate increases by 50 basis points if Slovenia does not achieve the lower reduction threshold of 35 percent, while it decreases by 50 basis points if the upper reduction threshold of 45 percent is achieved.

As for the geographical distribution of investors: 23 percent of the bond was purchased by investors from the United Kingdom and Ireland, 20 percent from Belgium, the Netherlands, and Luxembourg, 15 percent from Germany, Austria, and Switzerland. This is followed by Southern Europe with 12 percent, Slovenia with 11 percent, Nordic countries with 9 percent, France with 5 percent, while 2 percent of the allocation was purchased by investors from Central and Eastern Europe.

Although recent weakness in the SLB market was noted, demand for the bond was evident, with the offer exceeding demand by more than six times.

Energy portal