Bosnia and Herzegovina has approved a draft financing agreement with German development bank KfW for the 132 MW Poklečani wind farm, advancing one of the largest planned renewable-energy investments in the country.
State-owned utility EP HZHB plans to install 20 turbines, each with capacity of up to 6.6 MW, near Posušje. The project is expected to generate about 436.96 GWh of electricity annually.
KfW is expected to provide €65 million through a loan allocated to the Federation of Bosnia and Herzegovina. The financing would have a 15-year maturity, including a five-year grace period, provided the agreement is signed by November 2026.
EP HZHB estimates that Poklečani would increase its installed generating capacity by 14.6% and annual electricity output by about 20%. The additional wind generation would reduce the company’s heavy exposure to hydrological conditions and its need to buy electricity when weak rainfall cuts hydro production.
The project also includes a new substation designed to strengthen the grid and improve security of supply in the Rakitno and Blidinje areas.
The draft agreement will proceed to the Presidency of Bosnia and Herzegovina, while EP HZHB is expected to act as the implementing agency.
Poklečani’s market value extends beyond its installed capacity. By diversifying EP HZHB’s generation mix, the project could reduce the utility’s vulnerability to drought, wholesale price spikes and costly import periods, provided financing and construction move forward without further administrative delays.
