EU and EIB support the construction of the Vlašić wind Power Plant in Bosnia and Herzegovina
The European Investment Bank (EIB) signed recently a €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 Vlašić mountain, located about 15 km north-west of the town of Travnik.
The loan complements the €21.8 million grants allocated by the European Union in December 2023 through the Western Balkans Investment Framework (WBIF).
Aligned with the national strategies for renewable energy, the plant entails the construction of 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 displace 140,000 tonnes of CO2 annually. Beyond contributing to the country’s renewable energy goals and reducing reliance on coal, this project supports the transition to a low-carbon economy and fosters sustainable development.
“As the EU climate bank, this strategic investment demonstrates the Bank’s determination to scale up its financial and technical support for addressing the challenges related to the green transition in BiH and the Western Balkan region. It supports the country’s energy and climate targets, while fostering a resilient economic development that ensures stable energy supply and generates employment. For EIB Global, a leading financier of energy transition and climate action, it is important to support all countries and regions and make sure this transition is just and sustainable”, said EIB Vice-President Kyriacos Kakouris.
The transition to sustainable and clean energy is key for Bosnia and Herzegovina and the region’s future. In view of Bosnia and Herzegovina’s commitments to the implementation of the Green Agenda, the country has already started investing in the renewable energy production, which will help fight climate change, ensure clear air and boost BiH’s economy.
“I am glad that the EU has been able to provide more than €21 million in grants for the construction of the wind farm on Vlašić Mountain. Together with our partners we want to support Bosnia and Herzegovina to take advantage of its favourable climate and geography and start delivering on its path towards a low-carbon economy, reducing coal dependence and fostering sustainable development. The European Union is ready to provide financial resources and expertise to BiH for energy transition through the Green Agenda for the Western Balkans, the Economic and Investment Plan as well as the new Growth Plan and help the energy transition. Energy transition is key to improving the quality of life in BiH and for the path to the EU”, said the Ambassador of the European Union to Bosnia and Herzegovina, Johann Sattler.
The project Vlašić Wind Power Plant has been identified as Flagship 4 - Renewable energy, in the EU Economic and Investment Plan for the Western Balkans. The estimated total investment is over €91 million, and the project is expected to be completed in 2028.
During the preparation phase, the EIB has provided around €800,000 in technical assistance grant under its Economic Resilience Initiative, intending to support resilient and inclusive growth in the Western Balkans. The investment is expected to be implemented in cooperation with Germany’s KfW Development Bank under the Mutual Reliance Initiative, which is able to offer not only financing, but also expertise. In addition to the EU and EIB funds, Bosnia and Herzegovina contributes with €16.7 million together with KfW development bank that contributed with €16.5 million loan.
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