Bosnia and Herzegovina has approved a draft financing agreement with German development bank KfW for the 132 MW Poklečani wind farm. The project is described as one of the largest planned renewable-energy investments in the country. The draft is set to move forward to the Presidency of Bosnia and Herzegovina.
KfW loan terms for Poklečani wind project
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. The agreement is expected to be signed by November 2026.
EP HZHB is expected to serve as the implementing agency for the project. The financing arrangement is tied to the draft agreement progressing through the Presidency process.
Turbine plan, output estimates, and grid works
State-owned utility EP HZHB plans to install 20 turbines near Posušje. Each turbine would have capacity of up to 6.6 MW. The project is expected to generate about 436.96 GWh of electricity annually.
EP HZHB estimates that Poklečani would raise its installed generating capacity by 14.6% and increase annual electricity output by about 20%. The additional wind generation would reduce the utility’s reliance on hydrological conditions affecting hydro production.
The project also includes a new substation intended to strengthen the grid and improve security of supply in the Rakitno and Blidinje areas. This grid reinforcement is part of the overall scope associated with the wind farm development.
Expected impact on generation mix and exposure
Poklečani’s market value is described as extending beyond its installed capacity. EP HZHB expects that diversifying its generation mix could reduce vulnerability to drought-related constraints and wholesale price spikes.
The utility also expects fewer periods requiring costly electricity imports, depending on whether financing and construction proceed without further administrative delays.
