Hungarian renewable energy company Lugos Renewables will own 70 percent of the Trebinje 1 solar power plant. The remainder will be controlled by power utility Elektroprivreda Republike Srpske (ERS), said Luka Petrović, general manager of ERS.
The Trebinje 1 project has a planned installed capacity of 73 megawatts (MW), for which Elektroprivreda Republike Srpske got a concession in October 2020 from the Government of the Republic of Srpska. In September of last year, ERS said it is negotiating with Lugos Renewables to invest in the facility, while the European Bank offered to finance for Reconstruction and Development (EBRD).
ERS will offtake electricity from the solar power plant at EUR 50 per MWh for a period of 25 years
Luka Petrović, general manager of ERS, now said his company would purchase electricity from solar power plant Trebinje 1 at EUR 50 per MWh for a period of 25 years. Petrović pointed out the prices on power exchanges are currently reaching as much as EUR 400 and added that the expected average price is EUR 150.
The expected annual production of the solar power plant is around 130 GWh, and ERS expects a total income of EUR 325 million from the sale of the electricity while purchasing it would cost EUR 162 million, Petrović said.
Petrović: This is the best model in the Balkans
ERS could also get 30 percent of the profit from the Trebinje 1 facility. This is the best model in the Balkans, Petrović said and added that anyone who has a better one should come forward.
ERS also plans various projects, including Gornja Drina, Gornji Horizonti, Hrgud wind farm, Sutorina hydropower plant, and a solar power plant in Ljubinje.
Of note, solar is in a significant expansion in BiH. Plans for the construction of four large photovoltaic plants were announced just recently.