The European Investment Bank (EIB) announced on Monday (19 February) that its financing arm for investments outside the EU EIB Global has signed a 36 million euro loan for the construction of a 50 megawatt (MW) wind farm on the high plateau of Vlašić mountain in central Bosnia and Herzegovina.
The loan comes in addition to the 21 million euro in grants allocated by the EU in December through the Western Balkans Investment Fund (WBIF).
The Vlašić wind power plant is expected to consist of up to 18 wind turbines, with a total estimated power generation of 115 gigawatts hours (GWh)/year. This production is equivalent to the energy demand of 20,000 households, estimated to cut 140,000 tonnes of CO2 a year, the EIB said in a press release.
“As the EU climate bank, this strategic investment demonstrates the EIB’s determination to scale up its financial and technical support for addressing the challenges related to the green transition in Bosnia and Herzegovina and the Western Balkans region. It supports the country’s energy and climate targets, while fostering resilient economic development that ensures a stable energy supply and generates employment,” said EIB Vice-President Kyriacos Kakouris. “For EIB Global, a leading financier of the energy transition and climate action, it is important to support all countries and regions and make sure this transition is just and sustainable.”
With a total planned cost of 91 million euros, the wind farm is jointly financed by Bosnia and Herzegovina’s own contribution of 16.7 million euros, a 16.5 million euro loan from German development bank KfW and the EU’s 21 million euro grant and the 36 million euro EIB loan.
“I am glad that the EU has been able to provide 21 million euros in grants for the construction of the wind farm on Vlašić mountain. Together with our partners, we want to help Bosnia and Herzegovina to take advantage of its favourable climate and geography and start delivering on its path towards a low-carbon economy, reducing coal dependence and fostering sustainable development,” said EU Ambassador Johann Sattler.
“The European Union is ready to provide financial resources and expertise to Bosnia and Herzegovina for the energy transition through the Green Agenda for the Western Balkans, the Economic and Investment Plan and the new Growth Plan, and help the energy transition. The energy transition is key to improving the quality of life in Bosnia and Herzegovina and on its path to the EU,” EU Ambassador Sattler added.
In addition, the EIB has provided around 300,000 euros in technical assistance grants under its Economic Resilience Initiative for the development of the planned wind farm project.