The government of the Republika Srpska (an autonomous region of Bosnia and Herzegovina) granted 30-year concessions to a unit of Reservoir Capital Corp. to develop and build three run-of-river hydroelectric power projects on the Cehotina River.
The three projects have a combined capacity of 17.76 MW and a projected output of 69.61 GWh per year.
The concessions cover a 16-mile section of the Cehotina River, which has an elevation drop of 374 feet and median flow rates ranging from 706 cubic feet per second at the Montenegrin border, to 812 cubic feet per second downstream where it joins the Drina River.
The total natural energy capacity for this section of the Cehotina River is 24 MW (211 GWh/year), from which the company’s consultant, ENCOS Energy Consulting Services of Sarajevo, has designed three power plants.
The Cehotina Project is located geographically quite close to the company’s flagship Brodarevo Project in Serbia and to the new transmission infrastructure being constructed to better connect the Bosnian and Serbian grids with the Montenegrin coast and Italy.
The ENCOS preliminary development and construction cost estimate for the Cehotina Projects is about $58 million ($3.2 million per installed MW). Unlike Brodarevo, there are no major road displacement costs and the Cehotina Project also benefits from a higher average capacity factor of about 56 percent. Under the terms of the concession agreement, the company will pay a 3 percent gross revenue concession fee to the government of the Republika Srpska.
Having secured the Cehotina concessions, Reservoir is now in a position to negotiate attractive power purchase agreements and commence work on feasibility studies, further adding to its pipeline of renewable energy projects in the region.
Reservoir is a renewable energy company based in southeast Europe.