Luka Petrović: ERS intends to be regional seller of balance energy

State-owned power utility Elektroprivreda Republike Srpske (ERS) plans to build hydropower plants and solar power plants, while wind farms will not be in its focus.

Luka Petrović, General Manager of ERS, said the company’s share of renewable energy sources is currently at 40% while that the goal is to reach 60% which implies finishing the construction of hydropower plants Dabar, Buk Bijela, Bistrica, as well as solar power plant Trebinje 1 and wind farm Hrgud.

The Republic of Srpska has a huge hydro potential, as well as great potentials for the development of wind and solar power plants, according to Petrović. But due to its intermittency, wind energy produces balancing costs for investors, which is why ERS opted primarily for the construction of hydropower plants and solar power plants, he said.

Balancing costs for wind farms are a problem for investors

So far, ERS has developed projects for 247 MW within the Trebinje-Ljubinje solar projects, which will be used with hydropower plants that are in the pipeline to sell balance energy to the surrounding countries, the company quoted Petrović as saying on its website.

Last year, ERS received a concession for the construction of the Trebinje 1 power plant, and took over the development of the Ljubinje photovoltaic plant, for which the tender flopped in 2018.

He noted that on July 13 the European Commission is set to present a proposal for a carbon border tax. European Union member states already pay EUR 54 per ton of CO2 equivalent while the Republic of Srpska isn’t in the system, the CEO added.

There is an idea to demonstrate the willingness to align with the EU policy by separating a certain amount of money and invest it in ERS’s renewables projects, Petrović said.

Authorities in BiH must understand the construction of new power plants is important for both the Republic of Srpska and the Federation of BiH

He said authorities in BiH must finally understand and acknowledge that the construction of energy facilities has great importance for both the Republic of Srpska and the Federation of BiH, and that individuals and institutions at the BiH level should stop blocking projects of general interest.

The Federation of BiH will also benefit from the projects, like HPP Buk Bijela, because the VAT from the sale of electricity will be paid to Bosnia and Herzegovina, and thus the Federation of BiH as well, Petrović said.

In his view, the goal of ERS and the Government of the Republic of Srpska is to urgently invest in renewable energy sources because it would maintain the lowest price of electricity for households in the entity.