EIB Global to provide EUR 36 million for construction of wind farm in Bosnia and Herzegovina

EnergyBusinessSouth-East European INDUSTRIAL Мarket - issue 1/2024 • 18.03.2024

EIB Global to provide EUR 36 million for construction of wind farm in Bosnia and Herzegovina

EIB Global, the financial arm of the European Investment Bank (EIB) for activities outside the European Union, has signed a EUR 36 million loan with the public enterprise Elektroprivreda Bosne i Hercegovine for the construction of a 50 MW wind farm on the high plateau of Vlasic mountain, located about 15 km north-west of the town of Travnik. The loan comes in addition to the EUR 21 million in grants allocated by the European Union in December 2023 through the Western Balkans Investment Fund (WBIF).

Aligned with national strategies for renewable energy, the plant includes up to 18 wind turbines and their connection to the national energy grid and is expected to produce 115 GWh/year of electricity. This production is equivalent to the energy demand of 20 000 households and will displace 140 000 tonnes of CO2 a year. Beyond contributing to the country’s renewable energy goals and reducing reliance on coal, this project will support the transition to a low-carbon economy and foster sustainable development.

“As the EU climate bank, this strategic investment demonstrates the EIB’s determination to scale up its financial and technical support for addressing the challenges related to the green transition in Bosnia and Herzegovina and the Western Balkans region. It supports the country’s energy and climate targets, while fostering resilient economic development that ensures a stable energy supply and generates employment”, said EIB Vice-President Kyriacos Kakouris.

The Vlasic Wind Power Plant project — estimated at over EUR 91 million — has been identified as falling under Flagship 4 — Renewable energy in the EU Economic and Investment Plan. The European Union allocated in total EUR 21 million in grants for its construction. In addition to the EU funds, Bosnia and Herzegovina is providing a contribution of EUR 16,7 million, while the KfW development bank is offering a EUR 16,5 million loan.

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