According to the Bank’s website, the objective of this project is to increase renewable energy capacity and promote the development of the residential rooftop solar PV market in Bosnia and Herzegovina.

The Bosnia and Herzegovina Scaling Up Renewable Energy (SURE) Project aims to support Bosnia and Herzegovina (BiH) in maintaining energy security and affordability, enhancing economic competitiveness, and advancing the sustainable energy transition. To achieve these objectives, the project will finance investments to:
(i) increase renewable energy capacity through hydropower rehabilitation, solar photovoltaics (PV), and battery energy storage investments, and
(ii) promote the development of the residential rooftop solar PV market in BiH.

The project is structured into three components, each implemented by one of the three participating power utilities of BiH:
(i) Component 1: Scaling up renewable energy in ERS's area of operation;
(ii) Component 2: Scaling up renewable energy in EPBiH's area of operation; and
(iii) Component 3: Scaling up renewable energy in EPHZHB's area of operation.

The Project’s overall environmental risk rating is proposed as Substantial, primarily due to the hydropower component at HPP Jajce II on the Vrbas River and the associated uncertainty and potential consequences related to compliance with future minimum environmental flow (e flow) requirements. Namely, rehabilitation works are confined to existing facilities, Jajce II is a diversion-type plant commissioned in 1954 and operating within an already regulated and altered hydrological regime. The plant has operated in this configuration for more than 50 years, during which the reservoir/accumulation and associated ecosystems have adjusted to the long standing altered regime, with flora and fauna specific to these conditions. Notwithstanding the above, the Project faces regulatory and operational uncertainty because Jajce II is currently operating under an existing e flow approach that is expected to be superseded through the issuance of a new water permit in October 2026. In parallel, Jajce II is associated with potential turbidity and water quality effects on downstream users. Audit for Jajce II notes that fine suspended sediments, organic matter, and related water quality parameters from Jajce II and the downstream Bocac reservoir can propagate along the Vrbas River. Consequently, the Novoselija water intake, situated approximately 50 kilometers downstream of Bocac, may be indirectly affected by upstream hydropower operations, particularly during periods of high or variable flows, even though coarser sediments are retained within the reservoirs and no direct sediment management occurs at either Jajce II or Bocac.

At Appraisal, the project’s Social Risk is rated as Substantial, primarily due to the scope and complexity of activities and the multi-utility implementation structure, as well as interface with dam safety. Since Salakovac draws water directly from reservoirs regulated by upstream dams, these dams have been identified as having the potential to cause extensive damage to or failure of the project facilities. Furthermore, risks remain elevated also because the project encompasses three power utilities (EPBiH, EPHZHB, ERS) implementing several different activities. This complexity increases needs for coordination and supervision and heightens risks. Key social risks include: - Land use/access: Minor, temporary restrictions may occur during installation, but involuntary resettlement risks are limited because activities are mostly within existing footprints and household participation in solar programs is voluntary.

Total Project Cost: US$ 265.10 million
IBRD Commitment: US$ 265.10 million

CONTACT POINT - World Bank

Task Team Leader: Yuriy Myroshnychenko
Title: Senior Energy Specialist
Email: ymyroshnychenko@worldbank.org

TTL Contact: Claudio Protano
Job Title: Energy Specialist
Email: cprotano@worldbank.org

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint