A concession agreement for the construction solar power plant Trebinje 1 near the city of Trebinje was signed between The Government of the Republic of Srpska (RS) and state-owned power utility ERS.
Earlier this month, RS Government awarded the said concession to ERS. The total estimated value of the investment for the realization of projects in the concession period is around 50 million euros. The installed capacity of the plant is 72.92 MW and the estimated annual electricity production is 108.7 GWh. According to initial estimates, solar power plant should start commercial operation in 2022. The concession is awarded for a period of 50 years from the date of the signing of the concession agreement, and the solar plant will be built within 24 months from the date the agreement comes into effect. Before signing the concession agreement, the concessionaire is obliged to pay a one-off fee of around 250,000 euros to RS budget of Republika Srpska, and upon the construction of the solar power plant, the concessionaire will pay a concession fee of 0.275 eurocents per produced kWh of electricity, 95 % of which will be directed at the budget of the city of Trebinje. ERS is investing in renewable energy sources in an effort to diversify its energy portfolio. Besides Trebinje solar power plant, the company is developing a project for a 48 MW wind farm Hrgud in eastern Herzegovina, whose construction should start by the end of the year.