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Bosnia and Herzegovina: Solar boom sparks grid concerns, legal battles and allegations of corruption

By the end of 2025, five new solar power plants with a combined capacity of around 100 megawatts are expected to begin operation in Herzegovina. These include projects near Stolac, Medjugorje, and Livno, as well as two additional sites around Mostar. However, the country’s independent transmission operator, NOSBiH, has warned that a similar pace of expansion in 2026 could strain the grid, making system management more difficult and increasing the risk of network congestion.

A majority of the new solar developments are concentrated in the Herzegovina-Neretva Canton, an area where the existing transmission infrastructure is not equipped to handle the increased load. To connect to the utility network, developers have been forced to build new substations, which adds complexity and cost to the projects.

Despite these infrastructure challenges, there has been little visible concern from regional authorities or project investors. However, local activists in Mostar have long criticized the lack of transparency and alleged irregularities in how concessions and permits are awarded, often accusing authorities of favoring large investors at the expense of public interest.

In response to growing public pressure, Bosnia and Herzegovina’s Prosecutor’s Office initiated legal proceedings in Mostar earlier this year. The case aims to annul concession agreements granted by cantonal authorities for the construction of solar plants on state-owned land in areas such as Miljkovici and Medjine. These deals have come under scrutiny for questionable land-use changes in agriculturally valuable areas and for the seemingly non-transparent allocation of public forests and pastures.

A similar controversy is unfolding in the town of Stolac, where residents have objected to the development of the Komanje Brdo solar project. Located just 100 meters from the nearest homes, the site is valued for its biodiversity and cultural significance but is also prone to frequent flooding and landslides. Critics argue that authorities failed to properly restore the area after a deadly landslide in 2022.

Reports suggest that many of Herzegovina’s solar projects are backed by individuals with close ties to the ruling HDZ BiH party and by investors with questionable reputations. Much of the financing comes from foreign sources, which often secure equity stakes in the plants after covering initial development costs. These investors are positioned to make substantial profits from electricity sales, raising concerns that local political figures may be benefiting personally by accelerating project approvals through informal arrangements.

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