CONCESSION AGREEMENT SIGNED FOR CONSTRUCTION OF "BILEĆA ONE" SOLAR POWER PLANT

BANJA LUKA, SEPTEMBER 30 /SRNA/ - Republika Srpska Minister of Energy and Mining Petar Đokić and Zoran Pejić, director of Banja Luka-based company Solar Agroland, today signed a concession agreement for the construction and use of the "Bileća One" solar power plant with a battery energy storage system in the area of the Herzegovina municipality, with the investment valued at more than BAM 277 million.

The Government of Republika Srpska adopted a decision in September to award the concession, after which today's signing of the agreement created the basis for implementation of the project, the relevant ministry said in a statement. "The installed capacity of the solar power plant will be 270 megawatts, while estimated annual production will be 397 gigawatt-hours. The project also envisages a battery energy storage system with a power output of 120 megawatts and a capacity of 360 megawatt-hours. The estimated total investment value is BAM 277,727,860," the statement said. This is the first project of its kind in Republika Srpska which, in addition to generating electricity from a solar power plant, also includes a battery system for storing the electricity produced. "The combination of electricity generation from renewable sources and its storage represents an important step in the further development and modernization of the energy sector of Republika Srpska, as it enables more efficient use of generated energy, greater system flexibility and easier integration of renewable energy sources into the power system," the statement said. The Ministry of Energy noted that the project would also have a significant impact on the local community, both through the investment and activities during the construction and operation of the plant, as well as through concession fee revenues. "Prior to the conclusion of the agreement, the concessionaire paid a one-time concession fee of BAM 1,388,639 into the budget of Republika Srpska for the right granted. Following construction of the plant, the concessionaire will pay a concession fee of BAM 0.0055 per kilowatt-hour of electricity generated into the budget of Srpska, with 95 percent of the funds to be allocated to the budget of the Bileća municipality," the statement said. Under the agreement, the deadline for construction of the solar power plant and accompanying battery system is four years, while the concession has been granted for a period of 50 years.