The European Investment Bank (EIB) has granted a loan of 103.05 million euros to the Bosnian power utility EP HZHB. This funding will support the development of a 132 MW wind farm in the southwestern region of the country.
The Poklecani wind project will be located in the mountainous area of West Herzegovina Canton, within the municipality of Posusje. The total investment in the project is estimated at 206 million euros. Once completed, the wind farm is expected to significantly boost Bosnia and Herzegovina’s renewable energy capacity and help the country progress toward the targets set in the EU Green Agenda.
By replacing electricity production from coal, the wind farm will contribute to reducing emissions and improving air quality. A large portion of the electricity produced will be sold at a regulated price, while the remaining output will be traded on the wholesale electricity market.
The EIB’s involvement was crucial in securing the project’s financial framework, given the limited access the borrower has to international capital markets. The favorable loan conditions and long maturity period offered by the EIB were instrumental in moving the project forward.
