The director of Elektroprivreda RS, Luka Petrovic, stated this Friday, October 4, that this public enterprise is ready to realize large investments and thereby use the great potential of Republika Srpska in the energy sector.
– We know which model to implement depending on the investor or the contractor. We also know which model of financing to secure. Participation is required, usually at 15-25% of the value of the investment – Petrovic said at the panel titled “Largest Investment Projects – Energy, Roads, Telecommunications”, held within the International Real Estate and Investment Fair in Banjaluka.
Petrovic pointed out that this had enabled them to realize the project of construction of a solar power plant of 100 MW in Herzegovina.
– The financial construction is set for the Hrgud wind farm and the tendering procedure for the Dabar hydro power plant. The Drina has its potentials and we are heading toward a joint investment with Serbia. We are planning hydro power plants on the Bistrica, the HPP Cijevna and the Trusina wind farm, with the potential over 200 MW – Petrovic emphasized.
He said that Elektroprivreda's obligation is for those investments to begin in the next three years.
– This entails the implementation of a mixed model of financing and adequate contractors and for serious works to begin in the upcoming three years – Petrovic says.
According to him, nothing can be done in a short time. He reminded that, in the former Yugoslavia, the Trebinje 1 hydro power plant had been built for eight years.
– We need serious knowledge, workforce and consulting companies in order to get these investments. The plan is for around BAM 2.5 billion (EUR 1.25 million) to be invested in the next ten years – Petrovic says.
He emphasized that Elektroprivreda has not had a development component so far, as it implemented a social policy in forming the price of electricity, which is far below the market prices.
– If our company had increased the prices by only 2-3% each year, as all power companies in the surrounding area did, we would now have BAM 100 million for the necessary investments – Petrovic said.
He said that the problem was that the banking sector in B&H could not provide even BAM 50 million in large investments.
– Five banks need to join forces in order to secure EUR 100 million to support the investment, and the energy sector is financially demanding and these are much larger amounts. For this reason, foreign banks are closer to us – Petrovic clarified.
He added that Elektroprivreda RS planned to increase the production of electricity from renewable sources by 1,000 MW over the next ten years, which will require BAM 2.5 billion.