Bosnia and Herzegovina: Terminated concession contracts for few SHPPs

, SEE Energy News

The proposal on gradual ban of construction of small hydropower plants in RS Srpska did not pass in the Parliament in July. Now the Government of the Republic of Srpska (RS) has terminated concession contracts for the construction of several small hydropower plants (SHPP).

The installed capacity of power plants in question ranges from 1.7 to 3 MW. A total of five concession agreements was terminated for the construction of SHPPs Rzava 1-5. All agreements were signed in 2003 and the concessionaire did very little in terms of the implementation of the projects.

Environmental organizations, who argue against the construction of such facilities, welcomed the Government’s decision.

The proposal envisaged amendments to the Concession Law to put a moratorium on new SHPP projects until the complete ban. However, parties who advocate for immediate ban, which also includes already approved and started projects voted against this proposal. Banja Luka Center for the Environment said earlier that about 100 small hydropower plants have been built in Bosnia and Herzegovina (BiH) so far, and the construction of around 300 more is planned. According to its coordinator Viktor Bijelic, a small percentage of electricity is produced from small hydropower plants, but huge damage is inflicted, both to the local communities and to all citizens of Bosnia and Herzegovina, and both to the environment and to the economy of this country. The construction of all 400 SHPPs in BiH will not contribute to the production of electricity in Bosnia and Herzegovina by more than 3 %.