Republic of Srpska opens concession procedure for Tolanovo
The Republic of Srpska has launched a public concession procedure for the proposed 168 MW Tolanovo wind farm near Nevesinje. The project is estimated at €102 million, creating a new renewable energy investment opportunity in Bosnia and Herzegovina. The operating concession could extend for up to 50 years.
The concession process is tied to the role of grid access as an investment hurdle, according to the project conditions. Network connection requirements, permitting and exposure to wholesale electricity prices are cited as factors influencing financing decisions. Southeastern European electricity markets are also described as attracting additional wind investment.
Planned site, output and market sales arrangements
Local developer Adria Energy Wind is seeking to develop the facility on the Tolanovo mountain ridge. The site is located about 25 kilometres south of Nevesinje, with elevations ranging from 930 to 1,150 metres. The project is expected to generate approximately 451.4 GWh annually.
All electricity produced is intended for sale on the electricity market. Production is not planned to be reserved for a specific industrial consumer. This market-oriented sales approach is part of the stated project plan for Tolanovo.
Concession obligations and application requirements
Under the concession terms, the successful investor will be responsible for securing access to the electricity transmission network. The investor will also need to develop infrastructure required to connect Tolanovo to the existing grid. These responsibilities extend beyond turbine installation.
The concessionaire must also address land ownership and legal matters related to the project site, access infrastructure and the transmission route. Applicants are required to submit a feasibility study covering technical and economic viability alongside environmental protection requirements. For potential lenders and equity investors, the concession is described as an initial development framework rather than confirmation that construction readiness has been achieved.
Financing considerations linked to connection and power prices
The projected annual production is presented as contributing to regional renewable electricity availability. Commercial performance, however, is indicated as depending on multiple cost and revenue elements. These include the cost of grid connection, construction financing, operating conditions and the prices achieved for electricity delivered to the market.
The central investment question highlighted in the concession framework concerns whether generation revenues can support both the wind farm itself and the transmission infrastructure needed for delivery to regional buyers. This issue links expected income from market sales with the costs required to connect Tolanovo to the grid.
