Renewables

Republika Srpska terminates 7 concessions for small hydropower plants

Photo: Pexels

Published

April 23, 2019

Comments

0

Share

Published:

April 23, 2019

Comments:

0

Share

The Government of Republika Srpska (RS) has canceled 7 concession agreements for the construction of small hydropower plants (SHPPs), including many on the Vrbanja River, Capital.ba reported.

This is the second recent case in the wider region for concession contracts for hydropower projects to be terminated, after Albania’s Ministry of Infrastructure and Energy decided after a week ago to cancel 17 concession deals.

The Ministry of Energy and Mining of Republika Srpska confirmed that the RS government has made decisions on the termination of the concession contracts for the construction of SHPPs with seven concessionaires.

SHPP Vrbanja I, SHPP Grabovica, SHPP Koritina and SHHP Vrbanjci are all planned on the Vrbanja River, SHPP Sokočnica on the Sokočnica River, SHPP Medna Sklop on the Medljanka River and SHPP Ponor on the Ponor River.

The concessionaires with whom the contracts were terminated had not met obligations under the contracts even 13 years after the signing of the concession contract, the ministry said.

The concessionaires failed to prepare the project documentation, solve the property issues, obtain the necessary approvals, renew the performance guarantee, secure funding, and start the construction of SHPPs and accompanying facilities.

Taking these facts into account, the concession contracts lost their purpose and their termination has been proposed and adopted, the ministry said.

According to Capital.ba, RS citizens paid over EUR 6 million in incentives for SHPPs in 2018. In 2017, this amount was about EUR 4 million, and in 2016 about EUR 4 million.

Republika Srpska has recently abolished incentives for wind farms. Despite rumors that feed-in tariffs would be scrapped for SHPPs as well, they remained in place.

In March, the Parliament of Republika Srpska adopted a new law on renewable energy and efficient cogeneration, which abolishes feed-in tariffs for wind farms.

This change has not proven to be an obstacle to new investments. A week ago, the RS Ministry of Energy and Mining signed an agreement on a concession to build and operate the Grebak wind farm with an installed capacity of 49.5 MW.

The wind farm will not receive subsidies for the production of renewable energy from the state.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Erdogan 34 hydropower 125 more pipeline

Erdoğan inaugurates 34 hydropower plants, says 125 more are in pipeline

12 August 2022 - Turkey's President Recep Tayyip Erdoğan inaugurated 34 recently hydropower plants with an estimated annual output of 2.3 TWh in total

IHC 50 Kalyon renewable energy 1 GW solar park

IHC buys 50% of Kalyon’s renewable energy branch including 1 GW solar park

12 August 2022 - IHC) from Abu Dhabi will pay USD 490 million to take over 50% of Kalyon Energy and participate in new solar and wind power projects

clean-hydrogen

Bulgarian town plans clean hydrogen industrial zone

12 August 2022 - The Razgrad municipality in Bulgaria plans to develop an industrial zone that will use clean hydrogen produced with solar power

iberdrola-solar-power-plant-francisco-pizarro

Spain’s Iberdrola puts Europe’s largest solar power plant into operation

12 August 2022 - Iberdrola's solar power plant in western Spain has 1.5 million solar panels and an installed capacity of 590 MW