Siemens Gamesa Bags $78.4 Million Wind Turbine Deal with Bosnia's EPBiH

Siemens Gamesa has announced that it has inked a $78.4 million contract to supply Bosnia's chief power utility EPBiH with wind turbines for an impending 48 megawatt (MW) wind farm. It will also service the turbines for the period of five years.

As per the agreement, the company will supply 15 turbines and build the wind park on the Podvelezje plateau near the southern town of Mostar. The deadline to complete the project is 21 months, held EPBiH.

The total cost of building the wind farm, the foremost in EPBiH's portfolio, was put at around 83 million euros. It will produce 130 GWh of electricity, enough to supply 6,500 households, alleged EPBiH.

To help EPBiH proceed with the project, German state-owned development bank KfW lent the utility 65 million euros, while EPBiH will finance the rest of the cost.

Bosnia produces 60 percent of its electricity from coal-fired power plants and the balance from hydro-power. It plans to surge the share of renewable energy to 43 percent by 2020.

Numerous developers are looking to add around 500 MW in wind capacity in Bosnia over the coming years but only one wind farm has been put into operation so far.