The Council of Ministers of Bosnia and Herzegovina has approved a significant renewable energy initiative by endorsing a draft grant agreement with the European Investment Bank (EIB). This agreement includes a grant exceeding €42 million, aimed at facilitating the construction of the Poklečani wind farm through the Western Balkans Investment Framework (WBIF).
The planned wind farm will feature a total capacity of 132 MW and is strategically located in the West Herzegovina Canton. The project encompasses essential infrastructure developments, such as a substation and connections to the national electricity grid. The allocated grant funds will be directed to the Federation of Bosnia and Herzegovina (FBiH), with the state-owned utility EP HZHB responsible for its implementation.
In conjunction with this development, the Council of Ministers has initiated negotiations for a separate loan and project agreement with Germany’s KfW bank. This financial arrangement is part of a larger financing package estimated at around €75 million, underscoring the project’s scale and importance in enhancing renewable energy capacity in the region.
The wind farm will be situated in a mountainous area near Posušje, specifically on the Štitar mountain range close to Rakitno. Plans include the installation of up to 20 wind turbines, each capable of generating up to 6.6 MW, culminating in an overall capacity of 132 MW.
The anticipated annual electricity generation from this facility is projected to be approximately 437 GWh, positioning it as one of the most significant new renewable energy projects in Bosnia and Herzegovina. Following the completion of negotiations regarding the loan component, the Ministry of Finance and Treasury will ensure compliance with national legislation pertaining to public borrowing, debt management, and state guarantees, thereby aligning with the country’s legal and fiscal frameworks.
