Bosnia's Elektroprivreda to Invest $1.02 Billion for Two 300-Megawatt Hydropower Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--Elektroprivreda Bosne i Hercegovine (EBiH) (Sarajevo), Bosnia's largest state-owned energy utilities enterprise, will invest about $1.02 billion to develop two hydropower projects with a combined capacity of 300 megawatts (MW). The power plants, which will be located on the Drina River, are part of the country's strategy to exploit the river's abundant hydropower potential. The 346-kilometer river, which borders Bosnia and Serbia, is estimated to have a power generating potential of about 6,000 gigawatt-hours (GWh).

EBiH may also invite the government-controlled Elektroprivreda Srbije (EPS) (Belgrade) to form a joint venture for the project. EBiH, which is seeking sanctions from the state concessions commission, has indicated that it will begin talks with EPS as soon as it receives approvals from the regulatory body. The power plant projects are expected to revive Bosnia's infrastructure, equipment manufacturing and construction industries in addition to creating employment opportunities.

In 2007, EBiH's energy distribution network spanned 31,757 kilometers with 6,800 substations transmitting about 6,544 GWh of electricity. The company operates three hydropower plants on the Neretva River. These are the 210-MW Salakovac, the 151-MW Jablanica, and the 117-MW Grabovica hydropower projects. EBiH's thermal power projects include the 715-MW Tuzla and the 450-MW Kakanj facilities. EBiH also owns eight small hydropower plants with a combined capacity of 13 MW.

EPS has a net generating capacity of 8,353 MW, which includes 5,171 MW from lignite-based power plants and 2,831 MW from hydropower. Oil and gas contribute about 353 MW to the energy pool in Serbia.

Bosnia and Herzegovina, which declared independence from the former Yugoslav federation in 1991, has been ravaged by years of war, ethnic unrest and political instability. The country is now focusing on rebuilding its energy infrastructure by developing new projects and revamping existing facilities.

EBiH recently announced plans to invest about $1.04 billion in the next three years to renovate old facilities and construct new hydro and thermal power plants. The project will be carried out in association with the European Investment Bank (Luxembourg) and the European Bank for Reconstruction and Development (London). The company has also signed a $45.75 million agreement with the municipality of Konjic to develop 17 small hydropower projects with a combined capacity of 22.15 MW on a build-operate-transfer basis. The project has also been granted a 30-year concession starting from the commencement of operations.

More than 60% of Bosnia's energy needs are fulfilled by lignite- and brown-coal-based power plants, as well as hydropower facilities. The region is estimated to have balanced coal deposits of 5.46 billion tons, which consists of 3.58 billion tons of lignite and 1.89 billion tons of brown coal. The hydropower capacity potential in the region is expected to be about 6,500 MW. Bosnia is currently a net energy exporter, fulfilling 30%-50% of the demand in its neighboring regions. Experts indicate that with sustained development and upgrade in facilities and infrastructure, the industry can emerge as a major economic booster for the country.

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