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Slovenia sells Europe’s first sustainability bond, worth EUR 1 billion

Slovenia accessed the international markets with its inaugural sustainability-linked bond, oversubscribed by more than 6.5 times. The interest payable can grow or drop by 50 basis points depending on the country’s progress in cutting greenhouse gas emissions. It is the first-ever sustainability-linked bond issue from a European sovereign, the Ministry of Finance pointed out.

Bankers and fund managers flocked around the first sustainability-linked bond that Slovenia offered in the market. Demand reached over 6.5 times more than the EUR 1 billion available, with a 10-year maturity. It is also the first-ever sustainability-linked bond issue from a European sovereign, the Ministry of Finance pointed out.

The country’s Sustainability Bond Framework is also in line with the Green Bond Principles of the International Capital Market Association – ICMA, and it takes into account the Green Bond Standard of the European Union. The proceeds from sustainability bonds are for financing or refinancing eligible green or social projects.

If Slovenia doesn’t achieve a 35% cut in total greenhouse gas emissions by 2030, relative to the 2005 baseline, the interest payable on the note will increase by 50 basis points, commencing nine years after the settlement date. If the emissions cuts surpass 45%, the rate will go 50 points lower, the documentation shows.

High demand resulted in a drop in the price spread from 70 to 61 basis points above the benchmark

The initial price guidance was at 70 basis points above the mid-interest rate swap as benchmark. Strong demand, including EUR 435 million in joint lead managers (JLM) interest, slashed the spread to 61 points. The note has a 3.125% fixed-rate coupon, reoffer yield of 3.155% and reoffer price of 99.746%, the ministry revealed.

As for the geographical distribution of the buyers, 23% are in the United Kingdom or Ireland, 20% is in the region comprising Belgium, Netherlands and Luxembourg, and 15% are from Germany, Austria or Switzerland. Next is Southern Europe, with 12%, followed by Slovenia’s 11%, a 9% Nordics share and 5% for France.

Asset managers amounted to 54% of the total sum. Central banks and other official institutions, at 18%, were just barely ahead of other banks (17%). Insurance and pension funds purchased 5% and hedge funds now hold 4% of the issue.

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European Energy Communities Facility to award EUR 45,000 per project

The European Energy Communities Facility has launched its first call for proposals to support the development of comprehensive business plans for community energy projects. Emerging energy communities in 27 European Union member states, Iceland, Moldova, North Macedonia, and Ukraine can apply for a lump sum grant of EUR 45,000 per beneficiary.

The European Energy Communities Facility grants are intended to support the development of comprehensive business plans for community energy projects in 31 countries. A total budget of over EUR 3 million will be distributed among 73 selected initiatives to empower citizens to drive a fair, democratic, and sustainable energy transition. The application deadline is September 30.

The application deadline is September 30

The funding will cover all preparatory steps needed to develop a sound, viable, and bankable business plan, from technical and financial assessments to legal and administrative procedures, including feasibility studies.

In addition to financial support, successful applicants will gain access to peer-to-peer exchanges and a capacity-building programme, tailored to help them develop and implement their business plans.

Existing communities also can apply

While the call is primarily aimed at emerging energy communities, existing communities exploring new services or business models are also eligible to apply.

To qualify, the applicant must be registered as a legal entity and comply with one of the EU definitions for energy communities, be based in an eligible country (EU27, Iceland, Moldova, North Macedonia, and Ukraine), and commit to fulfilling all grant obligations.

To ensure fairness, applications will be assessed within two regional categories, based on the legal framework for energy communities of each country. This approach guarantees that initiatives developed in countries facing more challenging conditions for community energy will not be in competition with those emerging from countries with more favorable conditions.

Independent experts will evaluate proposals based on project ambition, readiness, quality, and local impact. The evaluation results are expected to be communicated by December.

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NGEN Group launches 9.4 MW battery project in Poland; more large-scale investments underway

NGEN Group, a high-tech company with a strong focus on innovation in the energy sector, particularly in the management and construction of battery storage systems, announced that it has launched an energy storage project in Poland. The initiative marks a significant step in the company’s expansion into the Polish market, where it leverages cutting-edge technology to support the country’s transition to a more sustainable and resilient energy infrastructure.

NGEN Group said it plans to undertake several similar projects across Europe in the coming year, including the development of battery systems with a total capacity of up to 1.6 GWh in countries such as Germany, Italy, Portugal, Poland, Croatia, and Austria.

The new battery energy storage system (BESS) will have a power capacity of 9.4 MW and an energy capacity of 18.8 MWh. Powered by Tesla Megapack 2XL technology, the system is designed to provide critical grid balancing services for Poland’s energy system, enhancing network flexibility and stability.

Significant environmental benefits

Beyond these operational benefits, the project is expected to deliver a significant environmental impact, saving approximately 1,800 tons of CO2 emissions annually. This aligns with broader trends in Poland.

“We are thrilled to introduce this advanced energy storage solution in Poland, which is fully aligned with our mission: ‘We are accelerating the green transition with innovative and sustainable energy solutions.’ This drives the next generation of sustainable energy,” said Roman Bernard, co-founder and CEO of NGEN Group. “By integrating Tesla Megapack technology, we are not only strengthening the reliability of the national grid but also contributing to Poland’s ambitious goals for renewable energy integration and carbon emission reduction.”

The project highlights NGEN Group’s expertise in delivering tailored, comprehensive energy solutions for businesses and energy services. As Poland continues to expand its renewable energy portfolio, initiatives like this battery storage system will play a crucial role in managing the intermittency of sources such as wind and solar, ensuring a stable electricity supply, and reducing reliance on fossil fuels.

NGEN is expanding its model across Europe

The company has already successfully collaborated on projects such as the development of a battery system for Uniper in Germany, and it aims to expand this model across Europe.

Based in Slovenia, NGEN Group, meaning Next Generation, specializes in innovative energy solutions, management, and construction of battery storage systems with intelligent balancing group management systems.

The company employs approximately 165 experts, develops proprietary software solutions, and offers customized services to promote sustainable energy practices across Europe. Its vision is a fully digitized and decentralized European energy system that keeps pace with the rapid growth of renewable energy and societal electrification.

NGEN was the technology sponsor this year of Belgrade Energy Forum, an annual conference organized by Balkan Green Energy News.

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First desulfurization system test completed at coal plant in Serbia

All construction work on the desulfurization system at coal-fired thermal power plant Nikola Tesla B (TENT B) near Obrenovac, Serbia, has been completed, and individual components of the system are now undergoing testing, the Ministry of Mining and Energy said.

The first test, in which flue gases and limestone slurry were injected through the absorber at unit B1, was completed. The same procedure is planned for absorber B2 in mid-August.

The units utilize the wet desulfurization method. The lime milk solvent is sprayed in absorbers-scrubbers to take in sulfur dioxide (SO2) from flue gas, resulting in the creation of gypsum.

Over EUR 400 million has been invested in desulfurization systems at TENT A and TENT B

Milan Aleksić, advisor to the Minister of Mining and Energy of Serbia, said during his visit to the site that more than EUR 400 million has been invested in the construction of desulfurization systems at TENT A and TENT B. He emphasized that the facility at TENT B is one of the largest environmental investments by state-owned power utility Elektroprivreda Srbije – EPS. “Last year, a similar system was built in TENT A. It is important that both facilities will contribute to better environmental protection and the health of the residents of Obrenovac and surrounding areas,” said Aleksić.

Thanks to the two systems, both thermal power plants, which still represent the backbone of Serbia’s electricity generation, will be able to operate longer, he asserted.

Aleksić pointed out that the ministry would continue to support EPS in planning and securing funds for environmental projects, with a particular focus on implementing environmental protection measures at thermal energy facilities.

TENT A is in the town of Obrenovac, while TENT B is further west in the same municipality, which is part of the territory of Serbia’s capital, Belgrade.

Cement to be produced using ash from TENT B

EPS’s General Manager Dušan Živković said that with desulfurization systems at three units at the Kostolac B thermal power plant, four units at TENT A, and both units at TENT B, all large EPS thermal power plants would be fully environmentally compliant with both the European Union’s and national standards.

“The hot test, injecting flue gases and limestone slurry through absorber B1, was successfully carried out. This is a key milestone in the technological process. The white plume from the stack is proof that the process is functioning, and we are now entering the phase of fine-tuning all parameters. We expect the desulfurization system at TENT B to begin trial operations in mid-December,” said Živković.

Lafarge plans cement plant and quarry

Another major project is being prepared in Obrenovac. Lafarge BFC Serbia plans to build a cement factory that would use ash from TENT B’s ash landfill as raw material for the production of construction materials. In the first phase, an investment of EUR 110 million is planned. The Government of Serbia has initiated the development of a special purpose spatial plan for the industrial complex.

The project includes a future factory in Ratari, a settlement in the municipality of Obrenovac, and a quarry in the Jazovnik–Svileuva area, spanning the municipalities of Vladimirci and Koceljeva. They would be logistically connected with TENT B. The project addresses the issue of electrostatic precipitator ash disposal and creates opportunities for its reuse in industry, contributing to the sustainability of Serbia’s energy sector.

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WindEurope urges Germany to drop negative bidding in wind auctions, switch to CfDs

Germany’s second offshore wind auction in 2025 failed to attract bids from developers, sending a clear signal that the country’s wind auction design, which relies on negative bidding, is not fit for purpose, WindEurope has warned. Instead of swimming against the tide, Germany should follow in the footsteps of other European countries and switch to contracts for difference (CfDs), according to the European wind industry association.

The auction covered two offshore wind sites in the North Sea with a combined capacity of 2.5 GW, but no developer placed a bid. That should be a wake-up call for the German government, according to Viktoriya Kerelska, Director of Advocacy & Messaging at WindEurope.

In negative bidding, developers offer the amount of money they are willing to pay for the right to build a wind farm, with the highest bid most likely to win. In the CfD model, on the other hand, they bid the electricity price they need, and receive compensation from the government if the market price falls below that level.

Kerelska: Negative bidding reduces the number of companies willing to participate in auctions

Negative bidding does not offer any revenue stabilization and exposes bidders to risks that go beyond their control. The uncapped negative bidding further intensifies the financial pressure on offshore wind developers by asking them to pay high sums for the right to develop an offshore wind farm, according to WindEurope.

“Negative bidding adds costs that make offshore wind more expensive and reduces the number of companies willing and able to participate in auctions,” Kerelska stated, adding it is time to amend the auction model so Germany can deliver on its offshore wind targets and industrial competitiveness.

Wind energy provides 30% of all electricity consumed in Germany, making it crucial for ensuring competitive prices for households and industry as well as energy security, WindEurope noted.

CfDs ensure lower financing costs and more predictable revenues

Most countries in Europe have introduced two-sided CfDs as a revenue stabilization mechanism for offshore wind development. It ensures lower financing costs and more visibility on future revenues, WindEurope said, noting that Denmark was the latest country to switch to CfDs after its 3 GW negative bidding offshore wind tender failed to attract any bids last December.

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Council of Europe urges North Macedonia to improve environment, protect Romas from disproportionate risks

North Macedonia should bridge the gap between commitments and reality on human rights of Romas and environmental protection, the Council of Europe said. In his new memorandum, the organization’s Commissioner for Human Rights Michael O’Flaherty raised concerns about environmental risks disproportionately affecting Romas, including air and waste pollution, lack of sanitation and exclusion from public services.

As for broader environmental issues, the official noted that poor implementation of laws negatively impacts health and human rights, with cities like Skopje, Bitola, and Tetovo among the most polluted in Europe. O’Flaherty also warned of pressure on journalists and activists.

The Council of Europe Commissioner for Human Rights Michael O’Flaherty published a Memorandum on the Human Rights of Roma and on Issues Related to the Right to a Clean and Healthy Environment in North Macedonia, following his visit in April. He acknowledged the country’s significant efforts and political will to address human rights challenges faced by the Roma community.

Nevertheless, the official observed a gap between the policy framework and its implementation. O’Flaherty expressed concern that Romas continue to face discrimination, poverty and social exclusion. The government responded that relevant authorities would give careful attention to his recommendations.

The commissioner pointed to environmental risks disproportionately affecting Romas, including air and waste pollution, lack of sanitation and exclusion from public services.

Turning to broader environmental issues, he noted North Macedonia’s strong legal and policy framework and international commitments, including constitutional recognition of the right to a healthy environment, criminalizing ecocide and pledging to phase out coal. “Yet, poor implementation negatively impacts health and human rights, with cities like Skopje, Bitola, and Tetovo among the most polluted in Europe. Challenges remain in waste management, pollution control, and public access to environmental information,” the Council of Europe said.

Marginalized Roma communities disproportionately exposed to environmental hazards

O’Flaherty was informed that marginalized Roma communities experience disproportionate exposure to environmental hazards due to poverty and their living conditions. He visited a settlement in Skopje that has not been legalized in Skopje.

In such settlements, Romas often live in precarious conditions, with dwellings prone to mould and lacking access to services that are essential for living in a healthy environment, including sanitation facilities, sewage systems and clean running water, the memorandum reads.

Air quality meters have been installed in other parts of the city of Skopje, but not in the Roma-dominated Šuto Orizari

“The commissioner is concerned that vulnerable Roma communities are overexposed to air pollution because of poor quality housing and because they burn wood, plastic and waste for heating, due to poverty and a lack of access to safe energy sources. This increases the risk of respiratory illnesses, chronic diseases and reduces life expectancy. In this regard, the commissioner notes that air quality meters, designed to measure spikes in pollution levels and warn the inhabitants, have been installed in other parts of the city of Skopje, but not in the municipality of Šuto Orizari,” mostly inhabited by Roma, the report adds.

The official was informed that areas inhabited by Romas are sometimes excluded from public garbage collection, exposing them to waste pollution and further health risks.

Efforts underway to provide jobs, equipment to informal waste recyclers

O’Flaherty highlighted the recent efforts to equip a local kindergarten in Šuto Orizari with solar panels for heating and to increase the number of parks. In addition, he said he was impressed by a social enterprise that works for the recognition of the contribution of informal waste recyclers to environmental protection and supports them by providing formal employment and electric tricycles for the transport of waste.

The commissioner recommended that the authorities design and implement measures to uphold the community’s right to a healthy environment, as enshrined in the constitution. It includes access to adequate housing, notably as regards the requirements of adequate location and access to public services like clean water, sanitation and the removal of waste and toxic waste.

Persistent challenges in waste management including illegal landfills

The Council of Europe’s Commissioner for Human Rights acknowledged that North Macedonia has ratified multiple international and regional conventions and agreements related to the protection of nature, the atmosphere, tackling climate change, and dealing with chemicals, waste, soil and industrial accidents. It is one of the few member states of the Council of Europe to have introduced the crime of ecocide.

On the other hand, O’Flaherty raised the issue of the lack of implementation of laws and strategic objectives. He is concerned about negative impacts on people’s health of high levels of air pollution, with three cities in the country – Skopje, Bitola and Tetovo – regularly exceeding safe levels of polluting particles and ranking among the 10 most polluted cities in Europe, and sometimes the world, according to the memorandum.

O’Flaherty acknowledged that serious environmental issues cannot be resolved overnight and praised North Macedonia for numerous efforts

The official wrote about the negative impacts on human rights and the environment posed by persistent challenges in waste management and the proliferation of illegal landfills, disproportionately affecting vulnerable communities including Romas.

Serious environmental problems cannot be resolved overnight, he underscored. The commissioner praised the government for efforts that include increasing the number of electric buses, tax reduction on other electric vehicles, work toward an energy system based on gas and the phasing out of coal, as well as ongoing projects to address toxic sites and illegal landfills.

Access to justice largely absent

O’Flaherty learned that access to justice in cases of environmental human rights violations, including the right to a healthy environment, has been largely absent in North Macedonia.

Individuals supported by nongovernmental organizations working on human rights and the environment were unsuccessful in several environmental court cases. The Macedonian Young Lawyers Association (MYLA or MZMP) reported having brought six cases since 2019 concerning air pollution, waste management and water pollution. They were dismissed, with courts arguing they do not have the competence to deal with such matters.

NGOs also report that in some cases the Aarhus Convention and international law are incorrectly interpreted by domestic courts.

The commissioner observed that environmental activists are generally free to carry out their work in North Macedonia. However, he expressed concern about an increase in the use of vexatious lawsuits or so-called strategic lawsuits against public participation (SLAPPs) to silence investigative journalists and activists.

One example is Investigative Reporting Lab Macedonia (IRL), a journalistic NGO. It was ordered to pay thousands of euros of legal costs in the context of a defamation complaint about its documentary entitled Conspiracy Against the Air. Threats of the use of legal defamation and smear campaigns online are also used to silence activists, the Council of Europe added in the memorandum.