The European Investment Bank (EIB) has approved an €80 million loan to the Electric Distribution Company of Serbia (EDS) to fund the installation of smart meters. The Serbian government will act as the guarantor for this loan, with the National Assembly required to ratify the guarantee contract as per Serbian law.
The modernization project aims to replace traditional meters with advanced electronic smart meters and establish a comprehensive system for their management, data collection, and communication. The total estimated cost of the project is €238 million, which will be executed in two phases: Phase 1A and Phase 1B.
Phase 1A will be financed through a €40 million loan from the European Bank for Reconstruction and Development (EBRD), backed by a state guarantee, and up to €8 million in non-refundable funds from the Investment Framework for the Western Balkans. This phase focuses on upgrading systems for remote measurement and consumption management in Niš, Kraljevo, Čačak, and for all large industrial consumers in Serbia. It will involve the procurement and installation of approximately 205,000 smart meters.
Phase 1B will be supported by the €80 million loan from the EIB, also guaranteed by the state. In addition to this, up to €110 million in EU grants from the Instrument for Pre-accession Assistance (IPA III) will be available. This phase will procure an additional 400,000 smart meters for regions identified by EDS as having the highest energy losses.
The EIB loan comes with a 15-year repayment period, including a four-year grace period. The interest rate will be set for each tranche individually, with options for either fixed or variable rates. The loan will be disbursed in up to 20 tranches, each with a minimum of €4 million, except the final tranche, which may be smaller if it covers the remaining balance. The loan must be fully utilized within five years of the contract’s signing.
The project represents a major step towards achieving Serbia’s energy policy goals by introducing smart measurement systems that will enhance efficiency and accuracy in energy distribution.
