RWE Innogy, the Republika Srpska – an entity within Bosnia and Herzegovina – and state-owned utility Elektroprivreda Republika Srpske (ERS) have entered into a strategic partnership in Banja Luka to develop, construct and operate four hydropower plants. The contracts were signed today, Wednesday, in the presence of Republika Srpska’s President Milorad Dodik. RWE Innogy had previously been selected as the preferred bidder in an official tender procedure. Over the next few years, joint venture companies will develop four run-of-river power stations on the Drina, where installed power will total 210 megawatts (MW). Given a positive outcome to the feasibility studies and completion of the planning, construction of the first hydro plant may begin from 2014. In future the completed series of power plants should generate around 750 gigawatt-hours (GWh) annually.
Republika Srpska’s President Milorad Dodik said: „Today is an important day for the Republika Srpska. I am happy that the strategic partnership with RWE Innogy for the upper Drina has been signed today. For the Republika Srpska this project is of enormous economic and strategic relevance. Together with RWE Innogy we will make use of the hydro power potential of the upper Drina. A significant project now associates us with Germany. I would like to thank the ambassador of Germany, Mrs. Knotz, for being with us on this day.”
Dr. Hans Bünting, RWE Innogy CEO, explained: “Hydropower is a key part of our strategy to expand the use of renewables. It gives us a common interest with south-eastern Europe, where vast potential exists for hydropower projects. The Republika Srpska recognised this years ago and has steadily expanded its hydro capacity ever since. We want to join in this expansion and are therefore contributing our long experience of hydro technology,”
Construction time for all four run-of-river plants on the Upper Drina is estimated at around five years. Much of the course of the Drina marks Bosnia and Herzegovina’s border with Serbia. The river flows for 486 kilometres into the Black Sea.
Dr. Olaf Heil, Head of Hydro and New Technology at RWE Innogy, added: “We’re delighted that the Republika Srpska has chosen RWE Innogy as a partner. Now we are hoping for a positive feasibility study for all four hydro plants. If all proceeds according to plan, we may be commissioning the first plant in 2019.” RWE Innogy is responsible within RWE Group for hydro plant planning and building. The company operates around 90 plants in six countries.
ERS is the biggest public company owned by the Republika Srpska. The utility employs around 8000 people and has 1348 MW of power plant capacity based on coal and hydro power. Using these resources, ERS generated a total of 5300 GWh of electricity in 2011. The proportion of hydro in ERS’s energy mix stands at 865 MW, at six sites in the Republika Srpska.
Source RWE
