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Bosnia and Herzegovina: ERS pursues concession for Trebinje 3 solar power plant

State-owned power utility ERS is seeking a concession from the Government of the Republic of Srpska (RS) for its third large-scale solar power plant project, the Trebinje 3 solar power plant. This facility is designed to have an installed capacity of 53.6 MW and an estimated annual production of about 85.5 GWh. The investment for this project is projected to exceed 42 million euros, with the concession expected to be granted for a duration of 50 years.

ERS plans to pay a one-time concession fee of approximately 420,000 euros for the rights to develop the plant, in addition to a fee of 0.0027 euros for each kilowatt-hour of electricity produced.

The Ministry of Energy and Mining will oversee the negotiation process for the concession. Within 60 days of the decision’s enactment, it is required to submit a report on the negotiations, along with a draft decision and agreement for granting the concession to the Government.

ERS previously received a concession for the Trebinje 1 solar power plant in October 2020. Last year, a Hungarian company, Lugos Renewables, acquired a 70% stake in this project through its namesake company. Trebinje 1 is expected to have a capacity of 72.92 MW and an annual output of 108.7 GWh, with a total investment valued at over 50 million euros. However, despite the initial plan to complete the project within two years, construction has yet to begin.

In November 2022, ERS also secured a concession for the Trebinje 2 solar power plant, which shares similar specifications and project value with Trebinje 3. While an environmental permit has been obtained for Trebinje 2, progress on the project has been minimal.

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