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Bosnia and Herzegovina: Trebinje 1 solar power plant faces major delays and financial troubles

Trebinje 1 solar power plant, a joint venture between Bosnian state-owned power utility ERS and Hungarian investors, is facing severe financial difficulties that threaten its future. Initially promoted as the largest solar facility in the Balkans and expected to begin operating in mid-2023, the project is far from completion.

The company SE Trebinje 1, which holds the concession, has been taken to court for failing to pay contractors. The Institute for Construction IG Banja Luka filed a lawsuit seeking payment of around 264,000 euros for technical documentation prepared under a 2023 contract and subsequent annexes.

SE Trebinje 1 did not dispute the claim in court but said the non-payment was due to ownership changes on the Hungarian side. The company promised the debt would be settled within 45 days after the ownership transfer is finalized. Court proceedings are ongoing, and a request for provisional security measures was rejected by the first-instance court.

Investigations revealed that the majority owner of SE Trebinje 1 is the Hungarian company Mayer NRG, which has had no employees or significant revenues for years. Ownership was previously transferred from Lugos Renewables, controlled by businessman Roland Lugos, under unclear circumstances. Sources suggest that Hungarian partners are mainly responsible for the project’s delays. While documentation was initially prepared for a 73 MW plant, they pushed to double the capacity, a request that was approved. This required all project documents to be redone, including the conceptual design, feasibility study, concession contract, location permits, and environmental approvals, delaying the project by at least two years.

The concession contract, signed in October 2020 for a 50-year period, was initially presented by the Ministry of Energy and Mining of the Republic of Srpska as an example of strategic investment. Nearly five years later, the project remains incomplete and mired in disputes.

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