The Federation of Bosnia and Herzegovina is advancing its renewable energy agenda with the recent approval of a significant financing package. Lawmakers in the upper chamber of Parliament have endorsed a €103 million loan from the European Investment Bank (EIB) designated for the Poklečani wind farm project, which is poised to enhance the region’s energy capacity.
This agreement, signed at the state level, entrusts EP HZHB, the public utility within the Federation, with the responsibility for implementation and repayment. The financing structure features a 25-year repayment term, complemented by a five-year grace period before repayments commence, providing a manageable framework for capital deployment.
The funds will facilitate the construction of the Poklečani wind farm near Posušje, situated in West Herzegovina’s mountainous terrain. The project plans to install 20 wind turbines, collectively capable of generating 132 MW of electricity. Once operational, this facility is projected to produce approximately 437 GWh of electricity annually, thereby making a substantial contribution to local renewable energy outputs.
<pIn addition to this loan approval, earlier in January, Bosnia and Herzegovina's Council of Ministers had also greenlighted a €42 million grant agreement with the EIB through the Western Balkans Investment Framework (WBIF). This earlier financial commitment further underscores the government's dedication to fostering renewable energy development in the region.
The Poklečani wind farm initiative reflects broader trends in Southeast Europe towards increasing reliance on sustainable energy sources, aligning with both regional energy policies and international commitments to reduce carbon emissions. As such projects come online, they are expected not only to bolster local energy security but also to stimulate economic growth through job creation and infrastructure development.
