Bosnia and Herzegovina

Bosnia and Herzegovina

Plenty of potential, but not much happening in Balkan region

CROATIA: There is plenty of potential for wind power in the Balkans, but progress is hindered by an absence of stable legislation, weak grid infrastucture and funding shortages.

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Croatia, currently the only EU member from this group, shows the most promise, not least because it now has to comply with binding renewable-energy targets. But bans on wind farm development on its coast and islands rules out the areas with the best wind resources.

Cumulative capacity stood at 227MW at the end of 2013, with 86MW added during the year. Developer Akuo Energy is working on the 42MW Ogorje wind farm, which is expected to start construction later this year, with finance provided by and Austria's Erste Bank and a subsidiary of French bank Societe Generale.

Montenegro and Serbia

Akuo Energy is also developing Montenegro's first wind farm, the 72MW Krnovo project, which is set to start construction this year.

Serbia recently passed a new energy law, which sets out a good framework for renewables development, but investors are unhappy with the model of power purchase agreement for wind, so progress has been slow. But work has started on the country's first wind project, the 102MW Plandiste wind farm in north-east Serbia.

Bosnia and Macedonia

Germany's KfW development bank is providing a EUR72 million loan for the construction of the first wind farm in Bosnia and Herzegovina. The 44MW Mesihovina project is scheduled for commissioning by the end of 2015.

Closer to fruition is the 37MW Bogdanci project, set to become the first wind farm in the Former Yuoslav Republic of Macedonia.

But the government's decision to set the total installed capacity eligible for feed-in-tariffs from wind power at just 100MW by the end of the decade leaves little room for wind power growth.

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