EBRD Provides €25.1 Million Loan For Major Solar Power Project In Bosnia And Herzegovina
The European Bank for Reconstruction and Development (EBRD) has announced a €25.1 million loan to Elektroprivreda Bosne i Hercegovine (EPBiH), the leading public electricity utility in Bosnia and Herzegovina. This loan will fund the development and construction of a 50 MWp solar power plant on a former coal ash landfill site in the municipality of Gračanica.
UniCredit Bank d.d. is also contributing to the project with a parallel loan of €15 million, mobilized through the efforts of the EBRD. The combined proceeds of these loans will be used to develop, construct, and operate two adjacent solar power plants, which together will constitute the largest solar project undertaken by EPBiH and one of its most significant investments in renewable energy to date.
This initiative marks a significant step in the ongoing collaboration between the EBRD and EPBiH to support the utility’s transition to renewable energy. The project also includes a 2050 technical cooperation initiative, supported by the EBRD, to assess various decarbonization scenarios for EPBiH. These scenarios will examine the impacts on the company’s operations, financial capital requirements, planning, project implementation, and stakeholder communication.
Additionally, the EBRD is aiding EPBiH in collaborating with authorities to introduce new educational standards in renewable energy. This initiative focuses on managing workforce transitions associated with decarbonization, ensuring a just and equitable shift to sustainable energy.
Technical and advisory support for this project is being provided by Austria through the Austrian Municipal Infrastructure Fund and the Austrian High-Impact Partnership on Climate Action. Additional support is being furnished by the EBRD’s Shareholder Special Fund.
These efforts are pivotal in advancing Bosnia and Herzegovina’s goal of achieving a 43.6% renewable energy share by 2030. The EBRD has been a key player in promoting the country’s green economy, having invested over €3.2 billion in 233 projects. The Bank’s strategic priorities in Bosnia and Herzegovina include fostering a green economy, supporting private sector development, and enhancing regional integration.