In times of accelerated energy transition and increasing demand for sustainable sources of electricity, Bosnia and Herzegovina is emerging as a new, still underutilized, but extremely attractive destination for investing in solar power plants.Thanks to favorable natural, infrastructural and regulatory conditions, investing in medium and large-capacity solar power plants is becoming one of the safest and most profitable investments in the Southeast European region.

Ideal climatic and geographical conditions for solar energy production

Bosnia and Herzegovina is located in a zone of high insolation, with an annual average of 1,800 to 2,200 hours of sunshine, especially in Herzegovina and Southeast Bosnia. This climate allows for high efficiency of solar panels throughout the year, with minimal seasonal fluctuations in production.

In addition, the terrain configuration, low air pollution and low foggy days additionally contribute to a high utilization factor, resulting in a faster return on investment and long-term stable income.

Affordable and accessible land

Unlike markets in the European Union where land, connection and permit costs are often a limiting factor, BiH offers affordable locations that are ideal for solar power plants. Many of these locations have already passed key preparation stages, including:

* Resolved property and legal relations

* Urban planning consent or ready location information

* Possibility of rapid integration into the electricity grid

* Proximity to access roads and logistical convenience

Energy system open to the development of RES

 Bosnia and Herzegovina is an exporter of electricity, with a developed transmission network and direct connections to the EU and Western Balkan markets. This makes the sale of produced solar energy simple and competitive, whether through a balance group, market sales or long-term Power Purchase Agreements (PPA) with large buyers.

Why invest in RES

By the end of 2024, the total installed capacity of solar power plants in Bosnia and Herzegovina has reached 153 MW, of which 74 MW is located in the Republika Srpska, and 79 MW in the Federation of Bosnia and Herzegovina. Although this growth shows a positive trend, the solar energy sector still occupies only 0.14% of the total electricity production in the country.

At the same time, an additional 752.5 MW is planned through projects that are in various stages of development – ​​from initial planning to final preparation for construction. If these projects were realized, the total capacity of solar power plants in BiH would reach approximately 900 MW, which would significantly increase the role of the sun in the country's energy mix.

However, the reality of domestic energy is still strongly based on fossil fuels, primarily coal, which accounts for about 60% of total electricity production, while hydropower participates with 33%. This production structure is not only a challenge in the context of environmental protection and climate goals, but also an increasingly serious problem in the context of sustainability, emission costs and compliance with EU regulations.

Replacing coal with renewable energy sources is one of the key steps to meet the international obligations that BiH has undertaken within the framework of the Energy Community and the Green Deal. At the same time, it is also a huge development and investment opportunity.

For investors, this represents a valuable entry point: a market that is only at the beginning of a serious transition, with great room for growth and a high return on investment. The projects being developed today could be key pillars of the new energy map of BiH in the coming decades – and bring long-term stability and income to those who recognize the opportunity in time.

Conclusion: An opportunity for those who think strategically

Investing in industrial solar power plants in Bosnia and Herzegovina represents a rare combination of high natural potential, a favorable investment environment and growing regional demand for green energy. The time to enter is now, while the market still offers competitive terms and a range of opportunities for partners seeking long-term security and sustainable returns.

Read more about this toppic: https://ia-lawfirm.com/en/how-to-invest-in-renewable-energy-in-bosnia-and-herzegovina/

Find RES investment opportunities here: https://www.investinbalkan.com/projects