Fourth utility-scale solar power plant planned to be developed in Herzegovina

The Government of the Republic Srpska has decided to initiate the procedure for granting a concession for the Nevesinje solar power plant and instructed the Ministry of Energy and Mining to conduct it.

The company Etmax based in Banjaluka has asked the Government of the Republic of Srpska for a concession for the construction and use of the Nevesinje solar power plant with an installed capacity of 60 MW. It is one of four advanced utility-scale solar power projects in the Herzegovina region in Bosnia and Herzegovina.

The investment in the solar power plant is estimated at EUR 53.3 million, and the expected annual production is 84 GWh. Etmax designs, develops and builds small-scale photovoltaic power plants.

For each megawatt-hour of electricity produced, Etmax will have to set aside EUR 2.8

The government defined the conditions for the award of the concession, which will be signed for a period of up to 50 years. Etmax will have to pay a one-off fee of EUR 267,000, and EUR 2.8 per MWh of production in its PV facility.

The Ministry of Energy and Mining, which will conduct the negotiation procedure, has 60 days to submit a report to the government, a proposal for a decision on granting a concession and a proposal for a concession agreement.

Etmax will secure money for the investment through a loan

The negotiation process begins when a potential concessionaire submits a bid and a feasibility study to the government. The company’s obligations will be specified in the agreement.

The money for the construction of the solar power plant will be provided through a loan, Etmax’s director and founder Siniša Maksimović told Capital.ba. He also announced the company would have several partners in the project.

The Republic of Srpska has so far issued two concessions for the construction of solar power plants in Herzegovina. In July last year, a deal was signed with EFT for the Bileća power plant, and in October, a concession was awarded to state-owned company Elektroprivreda Republike Srpske (ERS) for solar park Trebinje 1.

Power utility EPBiH also plans to install solar power plant near its wind farm Podveležje.