ESCO financed renewable energy project

The Esco Eco Energija d.o.o. is a public-private partnership between company Dvokut and Livno municipality registered in 2008 for development of the Energy Park Livno with energy production as its main purpose and distribution of heat energy as its main activity.

The final consumers of the Energy Park Livno are the public, residential and business facilities in the city of Livno. The first stage of its construction, which included a 2MW_th biomass boiler station, a 78 kW photovoltaic power plant and the adequate energy distribution systems, was completed in the year 2010. The company approached UniCredit Bosnia and Herzegovina, a Partner Financial Institution of WeBSEFF for financing the second stage of energy park development, which involved the introduction of a 4 MW_th biomass boiler station and connection to energy distribution grid, was the subject of financing through the WeBSEFF credit line. The WeBSEFF team assessed the potential of green energy production, CO₂ emissions reduction and financial-technical parameters of the project.

By introducing additional capacities, the company consumes approximately 1,792 tonnes annually of biomass and sell approximately 6,143 MWh annually to consumers. The investment with simple payback in less than 5.5 years has enabled additional 4,097 MWh of thermal energy annually for sale with annual gross profit increase by EUR 121, 324 and also reduced CO₂ emissions for 1,468 t annually. The amount of loan financed through WEBSEFF credit line was EUR 630,118 and the company received the financial incentive of EUR 63,012 (10% of the loan amount).

The Western Balkans Sustainable Energy Financing Facility (WeBSEFF) was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the European Union and the Western Balkans Investment Framework (WBIF).