Bosnia and Herzegovina: SPP Trebinje concession

5. October 2020. / SEE Energy News

In June, ERS submitted to Republic of Srpska (RS) Government an offer to build a solar power plant Trebinje 1, a project worth some 50 million euros, but with lower power output than initially planned. According to the new proposal, its installed capacity is reduced to 73 MW. Initially, ERS planned to build a 100 MW solar power plant near Trebinje, with annual electricity generation of 147.7 GWh.

The Government of the RS adopted the decision on the awarding of the concession for the construction and use of the solar power plant Trebinje 1 near the city of Trebinje and approved the signing of concession agreement with state-owned power utility 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. 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.

The cost of this larger project was estimated at around 70 million euros. 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.

 

 

 

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