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Bosnia and Herzegovina: ERS moves forward with Hrgud 60 MW wind farm despite loss of German financing

State-owned power utility ERS has formally taken the first step in the environmental approval process for its planned Hrgud wind farm by submitting documentation for a preliminary environmental assessment. The proposed facility is expected to have an installed capacity of 60 MW and is planned for the municipality of Berkovici, where it would be among the larger renewable energy projects currently under consideration.

The Hrgud wind farm is seen as a significant development in the region’s renewable energy landscape, highlighting efforts to diversify energy sources and increase sustainable production. ERS has emphasized that this project aligns with broader national goals for energy transition and the expansion of clean energy infrastructure.

However, the project has faced setbacks in financing. Last year, Germany withdrew support for the Hrgud wind farm due to political tensions linked to statements and actions by RS President Milorad Dodik. Previously, the German Development Bank (KfW) had committed a 60 million euro loan to cover the majority of project costs, leaving ERS responsible for only 4 million euros.

Despite the withdrawal of German funding, ERS continues to move forward with the planning and regulatory process, signaling its commitment to advancing renewable energy development in the Berkovici region. The preliminary environmental assessment will evaluate potential impacts on local ecosystems and communities, forming a crucial step toward eventual construction.

The Hrgud wind farm represents both an opportunity and a challenge for the energy sector in the area, combining ambitions for green energy with the complexities of political and financial uncertainty. ERS’s continued efforts reflect a broader push to ensure that renewable energy projects in the region remain viable despite external pressures.

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