The EBRD is supporting renewable power generation and foreign investment in Belarus by financing the construction of four biogas combined heat and power plants (CHPs) across the country.
A loan of up to US$ 15 million to three special purpose companies owned by the Lithuanian UAB Modus Group, will be used to construct and put into operation four biogas CHP plants with total installed capacity of 4 MW. The plants will be located in the Grondo and Brest regions in the north-west and south-west of Belarus, respectively.
The project will be the first direct investment for the EBRD in Belarus’s power sector and once implemented will generate 32 GWh of electricity annually, reducing CO2 emissions by 15,300 tonnes per year.
EBRD Head of Belarus, Alex Pivovarsky, said: “The project is consistent with the EBRD’s country strategy for Belarus and our Green Economy Transition approach. It will improve the energy supply mix in the country and promote the development of renewable energy projects.”
Harry Boyd-Carpenter, EBRD Head of Power and Energy Utilities, said: “We are delighted to finance this project with a dynamic and fast-growing sponsor like Modus Group. This transaction is also our first direct investment in the power sector in Belarus. We very much hope this will pave the way for more engagement in the country to help the power sector in its transition into a more sustainable and diversified sector.”
Ruslan Sklepovič, Board Member of Modus Group said: “Belarus is very active in the development of the renewable energy sector. The renewables market size and the attention the authorities are paying to this matter make Belarus attractive to biogas companies. Modus Energy is one of the largest companies of this type in the region and we are confident that our extensive sector experience will bring the project to successful fruition. “
Since the start of its operations in Belarus in 1992, the EBRD has invested almost €2 billion in 95 projects in various sectors of the country’s economy.