POWERCHINA Projects Signal China's Growing Role in Balkan Energy Transition

In recent years, China has increasingly positioned itself as a pivotal player in the energy transformation sweeping across the Balkans. This shift is prominently showcased through the ambitious projects spearheaded by the Power Construction Corporation of China (POWERCHINA) in Bosnia and Herzegovina (BiH), a nation rich in wind energy resources and environmental protection initiatives.

The Ivovik wind farm, boasting an impressive capacity of 84 megawatts (MW), alongside the Ulog hydropower station situated in the Neretva River valley, exemplifies POWERCHINA's strategic investments in renewable energy within Eastern Europe. Notably, these projects have achieved a localization rate of up to 90 percent, which signifies a solid commitment to integrating local workforce and materials into the energy sector.

The Ivovik project marks a historic milestone as it is the first foreign concessionary energy initiative in Bosnia and Herzegovina, along with being the inaugural renewable energy venture led by a Chinese company in the country. Upon connection to the national grid, this facility is anticipated to stand as the largest source of renewable energy generation in BiH, projecting an annual output of around 259 million kilowatt-hours (kWh). This substantial production capacity is estimated to offset approximately 240,000 tons of carbon dioxide (CO₂) emissions each year. Advocates of the project argue that it will catalyze the energy transformation in Bosnia and Herzegovina while generating both environmental and economic advantages.

Furthermore, the Ulog hydropower station, located in Kalinovik, represents another significant landmark as the first hydropower project undertaken by a Chinese corporation within BiH. This development is also POWERCHINA’s first engineering, procurement, and construction (EPC) hydropower project in Europe. Once operational, the Ulog station is expected to bolster regional electricity supply, promote emission-free production, and contribute to long-term sustainability goals across Central and Eastern Europe.

These initiatives by POWERCHINA not only illustrate the company’s expanding influence in the European renewable energy landscape but also highlight the strengthening ties between China and Bosnia and Herzegovina. Officials from POWERCHINA describe both the Ivovik and Ulog projects as a