KfW financing draft for Poklečani wind farm
Bosnia and Herzegovina has approved a draft financing agreement with German development bank KfW for the 132 MW Poklečani wind farm. The project is described as one of the largest planned renewable-energy investments in the country. The agreement advances a financing package totalling €65 million.
KfW is expected to provide the funds through a loan allocated to the Federation of Bosnia and Herzegovina. The financing is set to have a 15-year maturity, including a five-year grace period. The loan terms are contingent on the agreement being signed by November 2026.
EP HZHB turbine plan near Posušje and expected output
State-owned utility EP HZHB plans to develop the Poklečani project near Posušje. The plan calls for installing 20 turbines, each with capacity of up to 6.6 MW. EP HZHB expects annual generation of about 436.96 GWh.
The utility estimates that Poklečani would raise its installed generating capacity by 14.6%. It also projects annual electricity output to increase by about 20%. EP HZHB said the additional wind generation would reduce its exposure to hydrological conditions and lower the need to buy electricity when weak rainfall cuts hydro production.
Grid works and next steps for the financing agreement
The project includes construction of a new substation intended to strengthen the grid. It is designed to improve security of supply in the Rakitno and Blidinje areas. EP HZHB expects to use the substation as part of the broader integration of new wind capacity.
The draft agreement is set to move to the Presidency of Bosnia and Herzegovina. EP HZHB is expected to act as the implementing agency for the project.
Impact on generation mix and exposure to market conditions
EP HZHB said Poklečani’s value extends beyond installed capacity figures. The utility expects that diversifying its generation mix would reduce vulnerability tied to drought, wholesale price spikes, and costly import periods. This outcome is linked to financing and construction proceeding without further administrative delays.
