Recent developments in both China and Europe have made Bosnia and Herzegovina (BiH) more attractive than ever for renewable energy investment.
In China, the National Development and Reform Commission has issued Opinions on Promoting the Green Development of the Belt and Road Initiative. Under this document, the construction of new overseas coal power projects shall be stopped, while green and low-carbon projects should be prioritized. Solar and wind power enterprises are encouraged to go global and promote a number of green energy best practice projects.
In practical terms, this might result in the cancelation of two thermal power plant projects in BiH that have already been developing slower than expected – 700 MW Ugljevik II plant in the Republic of Srpska (RS, the Serbian entity/part of BiH) and 450 MW Tuzla plant in Federation of Bosnia and Herzegovina (the remaining BiH entity/part). The loss of 1150 MW of coal capacity will then need to be compensated with renewables – most likely solar, due to good irradiation potential and well-established regional practice of transforming coal complexes into solar parks.
On the other hand, due to sanctions imposed on RS by certain European countries, the German development bank has withdrawn support for 48 MW Hrgud wind farm in RS. This has resulted in the official announcement that, unless German support is reinstated within 6 months, the project will be given out to Chinese investors.
Our team is ready to assist potential investors interested in exploring these opportunities, so feel free to contact us.
