Bosnia and Herzegovina is advancing its green energy goals with a €40.1 million financing package from the EBRD, including a €25.1 million loan for a 50 MWp solar power plant. This investment supports the country's shift from fossil fuels to renewable energy, transforming a former coal ash landfill into a solar power facility.
Powering Bosnia's Green Energy Future
Bosnia and Herzegovina is making a significant move toward a greener future. The European Bank for Reconstruction and Development (EBRD) has provided a €40.1 million financing package to support this transition. This investment marks a crucial step in the country's journey towards sustainable energy.
The financing will aid the country’s largest public electricity utility, Elektroprivreda Bosne i Hercegovine (EPBiH). The funds will be used to transform a former coal ash landfill into a modern solar power plant. This transformation is part of the nation’s broader efforts to shift from fossil fuels to renewable energy sources.
The EBRD’s support includes a €25.1 million loan. This loan is specifically for the development and construction of a 50 MWp solar power plant in the Gračanica municipality. This solar project is one of the most significant renewable energy investments by EPBiH to date. UniCredit Bank d.d. is providing an additional €15 million loan to further bolster this initiative.
The funds will be used to develop and operate two adjacent solar power plants with a combined capacity of 50 MWp. These twin solar plants are the largest solar project undertaken by EPBiH. The construction on a former coal ash landfill symbolizes the country’s transition from fossil fuels to cleaner energy sources.
Collaboration Between the EBRD and EPBiH
The significance of this project extends beyond just the solar plants. It represents a broader collaboration between the EBRD and EPBiH. This collaboration aims to support the utility's transition to renewable energy. The focus is on ensuring that the move towards a low-carbon future is both just and sustainable.
The EBRD’s involvement is not limited to financing. The bank is leading a technical cooperation initiative to help EPBiH navigate the complex challenges of decarbonization. This initiative includes a detailed assessment of various decarbonization scenarios up to 2050. The scenarios will examine the impact on EPBiH’s operations, financial capital needs, planning processes, project implementation, and stakeholder communication strategies.
Moreover, the EBRD is also facilitating another technical cooperation initiative. This initiative focuses on workforce management challenges related to decarbonization. EPBiH will work closely with local authorities to introduce new educational standards in the renewable energy sector. This effort ensures that the workforce is prepared for the demands of a green economy.
The successful implementation of this project is supported by a network of international cooperation. Austria, through the Austrian Municipal Infrastructure Fund and the Austrian High-Impact Partnership on Climate Action, is providing essential technical support for the project. This support includes advisory services to ensure that the project aligns with global best practices in renewable energy development.
Reducing Dependence on Fossil Fuels
Bosnia and Herzegovina has set an ambitious target for renewable energy. The country aims to achieve a 43.6 percent share of renewable energy in its total energy mix by 2030. Projects like the Gračanica solar power plant are essential to reaching this target. They represent a significant step towards reducing the country’s dependence on fossil fuels and lowering its carbon emissions.
Gračanica solar power plant
The EBRD has been a long-standing partner in Bosnia and Herzegovina’s path to sustainable development. To date, the bank has invested more than €3.2 billion in 233 projects across the country. The EBRD’s strategic priorities include promoting the green economy, supporting private sector development, and fostering regional integration. The Gračanica solar power plant project aligns with these priorities. It demonstrates the EBRD’s commitment to supporting Bosnia and Herzegovina’s green transition.
As Bosnia and Herzegovina continues its journey towards a sustainable future, projects like these are critical. With the backing of international partners like the EBRD, the country is well on its way to achieving its renewable energy goals. This investment not only powers the nation’s green energy future but also sets a strong example for other countries in the region.