Agreement signed for “Bileca 1” Solar Power Plant worth about EUR 139 million

A concession agreement has been signed in Bileca for the construction of the “Bileca 1” Solar Power Plant, a project valued at over BAM 277 million that, in addition to generating electricity from solar energy, will feature a battery storage system.

The agreement was signed by Petar Djokic, Minister of Energy and Mining of Republika Srpska, and Zoran Pejic, Director of the Banja Luka-based company Solar Agrolend, paving the way for the project’s implementation in the municipality of Bileca.

The planned installed capacity of the solar power plant is 270 MW, with an estimated annual electricity generation of approximately 397 GWh. The project also includes a battery system with a power output of 120 MW and a total capacity of 360 MWh.

The estimated investment value is BAM 277,727,860.

According to the Ministry of Energy and Mining of Republika Srpska, “Bileca 1” is the first project in Republika Srpska to combine a large-scale solar power plant with battery energy storage, reports the Sarajevo Energy Portal. This combination allows a portion of the generated energy to be stored rather than consumed immediately, enabling it to be fed into the power grid at a later time. Battery systems can enhance grid flexibility and facilitate the integration of renewable energy sources, the output of which depends on weather conditions.

The concession has been granted for a period of 50 years, while the deadline for constructing the solar power plant and the associated battery system is four years.

Prior to signing the contract, the concessionaire paid a one-off concession fee of BAM 1,388,639. Once the power plant is built, they will also pay a fee of BAM 0.0055 per kilowatt-hour generated, with an agreement stipulating that 95 percent of these funds be allocated to the Bileca municipal budget.

The project further demonstrates Bileca’s positioning as a key area for planned solar projects in Bosnia and Herzegovina. According to local planning documents, four solar power plants are envisaged for the municipality.

In addition to the solar power plant already constructed in the Bileca area, the new project is expected to bring a significant increase in renewable energy generation capacity, but also be one of the largest battery storage systems planned in Bosnia and Herzegovina.

The Municipality of Bileca could generate annual revenue of at least BAM 3.5 million from the “Bileca 1” solar power plant, Petar Djokic, Minister of Energy and Mining of Republika Srpska, told RTRS. He emphasized that an environmental impact assessment had to be conducted prior to the project’s implementation, involving both the municipality and the local population, and noted that the project would undergo technical modifications if necessary to protect water sources.

Ministry of Mining and Energy of Republika Srpska

Solar Agrolend

Petar Đokić

Zoran Pejić

Bileća 1 Solar Power Plant

production of electrical energy

battery system

awarding of concession