World Bank supports Bosnia's energy transformation with $90.7 Million loan

The World Bank approved a $90.7-million loan to help Bosnia and Herzegovina "justly transition" from coal to renewable energy, as part of the country's National Energy and Climate Plan.

The Board of Executive Directors of the bank also approved a grant of $3.3 million to increase energy independence in the country, create new jobs and strengthen local economies of former coal regions.

The bank stated that the project will help to repurpose land in former northern coal mining areas of Banovici, Kreka, and install renewable energies systems, as well as facilitate the closing of underground works at Zenica, in central Bosnia.

Workers and communities looking for jobs outside of the coal industry will be able to take advantage of social protection programs and skill development programs.

Christopher Sheldon is the World Bank's Country Manager in Bosnia and Montenegro. He said, "This project offers an opportunity to increase Bosnia and Herzegovina’s energy security, while also supporting local communities and ensuring that no one is left out."

According to a World Bank report published last year, the country will need approximately $6.8 billion in order to combat climate change and support green transition.

Bosnia generates about 60% of its power from coal-fired plants, and the remainder mainly through hydro. The country has set an ambitious target to reach a 43.6% renewable energy share in its electricity production by 2030. However, the transition is slow. $1 = 0.8805 Euros (Reporting and editing by Tomasz Jánowski; Daria Sito Sucic)

(source: Reuters)