IEL invests EUR 120 million in wind farms in Basaid and Mali Crnic - French company also plans to invest in geothermal power generation in Vojvodina

French company IEL is preparing an investment in two wind farms in Serbia. Construction of the first complex will commence 2015 in Basaid near Kikinda, after which the French investor will also start building a wind farm in Mali Crnic, IEL officials have told eKapija.

A building land has already been provided for both wind farms. Basaid will get wind generators with a total installed capacity of 50 MW, and this investment is expected to reach a value of EUR 70 million. When it comes to the wind farm in Mali Crnic, IEL will invest EUR 50 million in that 36 MW power generation complex.

- IEL has decided to invest in Serbia because the natural potential of wind energy is big, legislative framework is good, and there is still no wind farm in Serbia, which makes room for investors. Our wind farm in Mali Crnic is in the development phase, and we currently work to get a location and energy permit for the plant in Basaid - Natasa Lazarevic, the director of IEL serbia and the adviser for the French foreign trade, says in a talk with eKapija.

If they get all the necessary permits, construction of the wind farm near Kikinda should begin 2015.

- The number of windmills will depend on the manufacturer we choose. We're negotiating with several companies at the moment. The procedure in Serbia obligates us to pick the type of wind turbine to use before getting a building permit - Lazarevic points out.

(one of IEL's wind farms in France)

According to our interlocutor, the first windmills near Kikinda will start spinning 2016.

Investment in wind farms depends on the model of the Renewable Energy Purchase Agreement which banks find unsatisfactory so investors cannot complete their financial plans. People at the French company have voiced their expectation that some changes will be made to the model of the agreement that was adopted last year.

- We expect the Renewable Energy Purchase Agreement to contribute to the investment security so investors and banks could decide to invest in the implementation of projects. We believe that the Serbian government will make some adequate solutions.

As far as general terms for investors in renewables in Serbia are concerned, Lazarevic says that IEL has got the impression that conditions in Serbia are satisfactory, but that companies require a stable legislative framework.

Investment in geothermal power plants

IEL also has plans to invest in geothermal energy in our country. The first step is to prepare a feasibility study.

- The study will show the potential of geothermal energy in the broader territory of the Pannonian Basin. The aim of the study is to determine the options for power production and the use of heat for heating, greenhouses, industrial processes - the director of IEL announces.

(Photo: Suzana Obradović)

According to our interlocutor, the study will focus on the exploration of potential at big depths, which requires big investments given that these exploration wells can be as many as five kilometers deep.

- The study will be prepared in cooperation a subsidiary of the French company EDF(Electricite de Strasbourg) which has an extensive experience in the exploitation of geothermal water for power and heat production. We will also work with experts from the Faculty of Mining and Geology. This study will cost EUR 500,000 and will be partially financed by the French Finance Ministry.

Once the study is completed, IEL and its partner EDF will pick projects to implement. This document will be placed at the disposal of all government agencies and other investors interested in using geothermal resources in Vojvodina.

About IEL

IEL, established in 2003, has plenty of experience in the field of renewables, primarily wind farms, solar and biogas power plants. Although already exploiting seven wind farms in France, IEL is still developing projects all around that country. They plan to build wind farms with a total capacity of 200 MW within the next two or three years. IEL's subsidiary for regional operations was registered in Serbia two years ago. This company is making investments in our country while simulteneously developing projects in both Bosnia-Herzegovina and Croatia.

Suzana Obradovic