COUNTRY | Bosnia and Herzegovina
REGION | Europe
SECTOR | energy
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle Building Resilience
QII Sub-Principles | 1: Wider economic benefits, 2: Operation and maintenance, 2: Technological innovation, 2: Risk management, 3: Environmental Impact Mitigation, 3: Emissions, 4: Resilience
Overview
A senior corporate loan of up to EUR 15 million to be divided into two parallel tranches (i) the EBRD tranche and (ii) a concessional tranche provided by the Green Energy Special Fund ("GESF"), a Special Fund established and administrated by the Bank with the contribution of the Taiwanese International Cooperation and Development Fund to support EBRD projects related to investments in efficient energy technologies. The proceeds of the loan will finance the reconstruction of medium and low-voltage networks, reconstruction of substations and expansion of smart metering ("the Project").
ZEDP Elektro Bijeljina is a public power distribution company servicing 13 municipalities in the Bijeljina region in Republika Srpska, Bosnia and Herzegovina. The company is majority owned (65 per cent) by Elektroprivreda Republike Srpske (EPRS), one of the three national energy utilities 100 per cent owned by the Government of Republika Srpska that cover electricity generation and distribution in Republika Srpska. Elektro Bijeljina employs some 900 employees and is the second largest distribution subsidiary of EPRS (out of a total of 5 distribution subsidiaries in EPRS).
The Project will support ZEDP Elektro Bijeljina to reach its strategic objectives of a) Reducing losses, through the installation of new protected cables and substations as well as new meters with remote reading and disconnection features; b) Improving the quality of supply, with the replacement of substations and reconstruction of networks in the most populated areas which is projected to reduce frequency and duration of unexpected grid disconnections, as well as to provide a more stable supply of electricity; and, c) facilitating new renewable connections to the distribution network, mainly small PVs and small HPPs.
Timeline
The Project was expected to be completed by end of 2020, but due to the inefficient procurement and the Covid-19 crisis, the completion is expected by 2023.
Relevance to QII
The selected principles are being operationalised by implementing the Project, upon the completion of which the objectives of reduction in losses and CO2 emissions and improvement of the ZEDP Elektro Bijeljina’s resilience are expected to be achieved.
Benefits
The reconstruction of medium and low-voltage networks and introduction of around 30,000 new smart meters is expected to reduce distribution losses from 8.83 per cent (including commercial losses) to 6 per cent, saving at least 20 GWh of electricity per annum with significant associated CO2 emissions reductions.
Name of Institution
The European Bank for Reconstruction and Development
Website URL