First testing has begun on a China-backed, UK-based group’s maiden power generation facility in Bosnia.
Energy Financing Team (EFT), a trade and investment group, announced that it has commenced tests at the 300 MW Stanari coal-fired power plant in northern Bosnia.
The plant was connected to the Bosnian grid for several hours on Monday during which it delivered 420 megawatt-hours of electricity.
EFT, which focuses on power markets in central and southeast Europe, won a 30-year concession in 2008 to build the plant and expand an adjacent coal mine that will supply it at a total cost of $601m.
In 2013, EFT won a 350 million euro loan from the China Development Bank for the project and pledged to finance the remainder of the cost from its own equity. So far, it has invested 311 million euros into the project, it said.
The company picked Dongfang Electric Corp, one of China’s top power equipment makers, to provide equipment and carry out the construction. The Stanari plant will have an annual output of 2,000 gigawatt-hours (GWh) when it starts commercial operation later this year.
Chinese investors are increasingly targeting energy projects in the Balkans, boosting their presence and showing a willingness to take bigger risks than European rivals in a market with good links to the European Union.
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