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June 7, 2025
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Investment risk highest for nuclear power, lowest for solar

Nuclear power plants have the highest construction cost overrun and the longest time delays of all energy projects. In the clean energy sector, the worst marks for violation of set construction cost and timelines go to hydrogen, carbon capture and storage as well as gas power plants, according to a study by the Boston University Institute for Global Sustainability.

The average project costs 40% more than expected for construction and takes almost two years longer than planned, the Boston University Institute for Global Sustainability (IGS) said.

Its researchers used an original dataset 50% larger than the ones in previous literature. They examined cost overrun risks for 662 energy infrastructure projects across 83 countries built between 1936 and 2024, covering USD 1.358 trillion in investment and a total capacity of more than 400 GW.

In total, the study evaluated ten types of projects: coal-, oil-, and natural gas–fueled power plants; nuclear reactors; hydropower plants; utility-scale wind farms; utility-scale solar photovoltaic and concentrated solar power (CSP) facilities; high-voltage transmission lines; bioenergy and geothermal power plants; hydrogen production units; and carbon capture and storage (CCS) facilities.

Both hydrogen and CCS projects exhibited significant time and cost overruns

“We found that more than three fifths of the projects experienced cost overruns, with these overruns being particularly prominent in projects exceeding 1,561 MW in capacity. Positively, the escalation rate in cost overruns has been declining since 1976,” reads the study, published in the Energy Research & Social Science journal.

However, the findings show patterns of cost overruns varied by fuel source. Nuclear and fossil thermal projects exhibited higher cost escalation rates over time, whereas solar power projects showed a decline.

Critically, both hydrogen and CCS projects exhibited significant time and cost overruns, casting doubt on their ability to be rapidly scaled up, to address climate change or meet energy and climate policy priorities, the authors underlined.

The average nuclear power plant has a construction cost overrun of 102.5% and ends up costing USD 1.56 billion more than expected, IGS said.

Red flag for efforts to substantially push forward a hydrogen economy

“Worryingly, these findings raise a legitimate red flag concerning efforts to substantially push forward a hydrogen economy,” said Benjamin Sovacool, lead and first author of the study, director of IGS, and professor at Boston University’s Department of Earth and Environment.

In the results, solar energy and electricity grid transmission projects have the best construction track record and that they are often completed ahead of schedule or below expected cost.

Wind farms also performed favorably in the financial risk assessment, according to the study, called ‘Beyond economies of scale: Learning from construction cost overrun risks and time delays in global energy infrastructure projects’.

“Low-carbon sources of energy such as wind and solar not only have huge climatic and energy security benefits, but also financial advantages related to less construction risk and less chance of delays,” Sovacool stated.

For him, it’s further evidence that such technologies have an array of underrated and underappreciated social and economic value.

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June 7, 2025
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PV plant built next to Slovenia’s only pumped storage hydropower plant Avče

Slovenian company Soške elektrarne Nova Gorica (SENG) commissioned its first solar power plant – Kanalski Vrh. The facility is at its Avče pumped storage hydropower plant, the only one in the country.

Surfaces around large infrastructure such as railways are convenient for photovoltaics as there are very few options for the utilization of such sites. Existing power plants, including hydropower plant reservoirs, are even better locations, as they provide access to strong grid connections and transformers.

With its strict environmental and social regulations and standards, Slovenia is struggling to determine suitable locations for wind turbines, but also larger ground-mounted solar power plants. But state-owned power utility Soške elektrarne Nova Gorica (SENG) managed to fit a photovoltaic system on the banks of the upper reservoir of its Avče pumped storage hydropower plant, in cooperation with the local community.

Kanalski Vrh solar power plant hooked to existing power line

The 2.9 MW solar power plant north of the village of Kanalski Vrh is connected to an existing 20 kV power line. The hydropower operator estimated the annual output at 3.3 GWh. It plans to expand the PV facility to 8 MW by the end of next year.

The first phase was worth EUR 2.2 million. The firm, part of Holding Slovenske elektrarne – HSE Group, used its own funds and won government subsidies.

Area gets natural science park, cycling paths together with PV facility

In the local spatial planning process, Kanalski Vrh got a natural science park and walking and cycling paths. SENG’s first solar power plant spans two hectares and consists of 4,736 modules.

“We have witnessed increasing opposition to the construction of new energy facilities for the production of electricity from renewable sources, but the Kanalski Vrh solar power plant is proof that projects can be successfully completed in an open and transparent dialogue with the local community,” Managing Director of HSE Tomaž Štokelj said.

Avče is the only pumped storage hydroelectric plant in Slovenia. It has 180 MW in pumping mode and 185 MW for production. Avče and four out of five SENG’s hydropower plants on the Soča river are in the municipality of Kanal ob Soči. The first one, Doblar 1, was built in 1939.

Kanal ob Soči is at Slovenia’s western border, with Italy. The firm also operates a group of small hydropower plants.

If the operation of a solar power plant is integrated with a hydroelectric facility, as a hybrid power plant, it can help save water on sunny days.

Slovenia hosts two other PV facilities next to hydropower plants: Brežice and Zlatoličje-Formin.

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June 4, 2025
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Photovoltaics recycling gains traction in Greece with new facilities

Two recycling facilities for solar panels are complete in Greece, while another one is expected to follow soon.

The business case behind the investments in recycling is solid, as more and more older solar farms will reach the end of their operational life, which is 20-25 years. European and national laws stipulate that such equipment must be recycled to reduce pollution and reuse critical minerals as much as possible.

However, owners who prefer to replace their equipment even before the end date is reached are also interested in recycling. The reason is the much higher efficiency of modern photovoltaics.

The factor is gaining in importance as solar panel prices have dropped, while curtailments have been on the rise for two years.

Fotokiklosi is currently the only active licensed company in the sector. It exports photovoltaic waste to Italy for recycling and also specializes in appliances, bulbs and electronics.

However, new opportunities emerge, as other companies have invested in the country’s first recycling facilities. They are situated in Ritsona in Central Greece, in the island of Crete and in Kozani in the Western Macedonia province in northern Greece. The first two are already operational, while the third one is almost complete.

Massive drop in prices

Competition seems to be heating up. According to energypress.gr, Fotokiklosi was charging EUR 300 per ton of photovoltaic waste six years ago, EUR 150 per ton in 2023-2024, and after that only EUR 90 per ton.

It should be noted that the process begins with the payment of a fee from the retailer or importer of panels to the recycling system operator. The recycling company collects the money and pledges to handle the waste after the panels’ operational life has ended.

Fotokiklosi is currently awaiting a new license from the Hellenic Recycling Agency (HRA or EOAN), based a suggested price of EUR 90 per ton.

With the new plants in Greece, old panels will no longer have to be transferred to Italy for recycling. The lower overall cost makes the choice easier for Greek solar farm owners.

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June 4, 2025
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CBAM could cost BiH up to EUR 1.6 billion; PM Nikšić signals potential delay

The implementation of the European Union’s cross-border carbon tax and an emissions trading system could cause losses for businesses in Bosnia and Herzegovina ranging from BAM 722 million to BAM 3.17 billion (EUR 369 million to EUR 1.62 billion), according to the latest analysis. At the same time, a statement from the Government of the Federation of BiH, one of the two political entities of BiH, indicates that the rollout of the tax could be postponed.

The EU’s Carbon Border Adjustment Mechanism (CBAM) is expected to come into effect on January 1, 2026. CBAM will impose taxes on imports of cement, iron, steel, aluminum, fertilizers, hydrogen, and electricity into the EU from countries that do not have a CO2 tax.

If CBAM and an emissions trading system (ETS) are both implemented starting next year, BiH’s economy could face financial losses ranging from BAM 722 million (EUR 369 million) to BAM 3.17 billion (EUR 1.62 billion) between 2026 and 2030, Akta reported.

The analysis was prepared at the request of the Ministry of Foreign Trade and Economic Relations of BiH, with support from the Delegation of the European Union to BiH and technical assistance through the EU4Energy project. The authors analyzed four scenarios based on CO2 prices ranging from EUR 118.53 to EUR 147.22 per ton.

Four models for implementing CBAM and ETS were analyzed

The electricity sector, one of the most important industries in BiH, could bear the highest costs under all four models analyzed.

According to the authors, the costs could be passed on to electricity prices, harming households and businesses. It could pose a serious challenge to the country’s economic stability in the coming years.

The first scenario assumes that BiH is paying CBAM, but an ETS is not introduced. Losses in this case would amount to BAM 1.2 billion (EUR 614 million), with electricity producers suffering the most  – BAM 737 million (EUR 377 million). Steel and iron producers would lose BAM 454 million (EUR 232 million), and the cement industry BAM 58 million (EUR 30 million).

The least favorable scenario is a simultaneous implementation of both CBAM and ETS

The second scenario is based on a phased introduction of CBAM with free allocation, but still without ETS. The cost is estimated at BAM 722 million (EUR 369 million), with the electricity sector losing BAM 580 million (297 million), and the steel and iron industry BAM 100 million (EUR 51 million).

The third scenario is the worst for BiH. If ETS and CBAM are rolled out simultaneously, total cost reach BAM 3.17 billion (EUR 1.62 billion). The electricity sector would lose BAM 2.1 billion (EUR 1.07 billion), and the iron and steel industry BAM 504 million (EUR 258 million).

The fourth option involves free allocation within the ETS and CBAM applied only to fertilizers, which are not under the scope of the ETS. In this case, BiH’s industry would lose BAM 2.3 billion (EUR 1.2 billion). Electricity producers account for BAM 2 billion (EUR 1 billion) and the iron and steel industry is down BAM 117 million (EUR 59.8 million).

Nikšić: We must be prepared

Earlier this year, there were reports that the European Commission intends to propose a delay in the implementation of CBAM. However, it turned out that only the reporting and payments would be delayed.

Prime Minister of the Federation of BiH Nermin Nikšić said in Neum that there are indications the deadline for introducing CBAM might be extended.

However, FBiH cannot rely on it, and must create conditions to generate sufficient energy from renewable sources, he underlined. It will ensure that the industry does not have to pay taxes when exporting its products to the EU, Nikšić added.

He didn’t go into the details about the indications.

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June 4, 2025
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Montenegro preparing first renewable energy auction to accelerate green transition

A model for Montenegro’s first auction for market premiums for solar power was outlined at an event in the capital Podgorica. The new legal framework for the green energy transition includes guarantees of origin, citizen energy communities and streamlined permitting. Stakeholders will be able to participate with their comments and suggestions in the renewables auction design.

The Ministry of Energy and Mining of Montenegro organized a conference today to present the key design elements of the first market premium auction for renewables. The competitive bidding process for wind and solar power is part of the reform agenda within the European Union’s Growth Plan for the Western Balkans.

The country’s new legal framework includes guarantees of origin, citizen energy communities and simplified permitting aimed at facilitating investment. They were defined with the new laws on energy and renewables.

The ministry said the first auction would be for photovoltaics. Solar power is the segment with the greatest potential and the lowest share in domestic electricity production, it explained.

EBRD’s Zakaria: First auction should match market needs

The Head of Montenegro in the European Bank for Reconstruction and Development (EBRD) Remon Zakaria urged stakeholders to send their comments and suggestions. The design of the first auction should match the needs of the market as much as possible, he argued.

EBRD participated in drafting the model. The ministry also thanked the Ministry of Finance of Austria, Central European Initiative (CEI) and other partners for their assistance.

At the event in Podgorica, a team of experts presented the technical matters concerning the upcoming auction.

Montenegro to boost renewables’ share in electricity output to 70% by 2030

This is not just the beginning of a technical process – it is a strategic leap, according to Minister of Energy and Mining Admir Šahmanović. He pointed out that Montenegro is transitioning from state incentives to a market-based support model, saying it aligns with the best European practices.

“We know our ambitions and goals for 2030 – a 50% share of renewable energy sources in final consumption and 70% of electricity to be produced from renewable sources. They are indeed demanding targets, but reachable – especially with support from international partners and the private sector,” Šahmanović added.

Montenegro has demanding, but achievable green energy targets, Minister Admir Šahmanović said

Montenegro doesn’t see itself isolated in its energy future but as an integral part of the European market, the minister asserted. With the forthcoming auction, the country is sending a clear message that it is ready for the next steps in the green transition, in his view.

The government is committed to decarbonization, digitalization and preparations for the European Union’s instruments like the emissions trading system (ETS) and Carbon Border Adjustment Mechanism (CBAM), Šahmanović underscored.

“We don’t see this process as a political goal – but as an economic opportunity and social imperative,” the minister said.

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June 4, 2025
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Zhongbo Group to install wind farm near Trebinje

In addition to the plans for several solar power plants in Trebinje, the city in the far south of the Republic of Srpska is paving the way for a wind farm. Chinese company Zhongbo Group is interested in investing in the project.

The Assembly of the City of Trebinje has approved the proposition to develop a zoning plan, the first step in the Trebinje 1 wind farm project, according to local news website Trebinje danas.

The owner of Zhongbo Group, registered in Banja Luka, is Everest Power Pte. Ltd., headquartered in Singapore.

The company has conducted research and preparatory works on the site and obtained approval from electricity transmission company Elektroprenos BiH.

The city authorities will monitor the development of the plan to protect the local population

According to Siniša Vučurević, head of the capital investments department of the City of Trebinje, the zoning plan covers three locations. The first is for the areas of Domaševo, Ždrijelovići, Ugarci, Čvarići, and Vrpolje. The second part are the villages Bodiroge, Vladušići, Turani, and Grkavci, and the third one entails Staro Slano, Tulje, and Dobromani.

He stressed that the department would oversee the preparation of the planning document to ensure the protection of the local population living in the area.

Vučurević added it is in the city’s interest to obtain revenue from concession fees. According to the regulations in the Republic of Srpska, one of the two entities making up Bosnia and Herzegovina, 95% of the fee belongs to the local authority.

Power utility Elektroprivreda Republike Srpske holds three concessions

As for solar power plants, state-owned power utility Elektroprivreda Republike Srpske (ERS) has been awarded the three concessions for photovoltaic plants – Trebinje 1, Trebinje 2 and Trebinje 3. The company Modul Energy holds the concession for the Čičevo PV plant on city territory.

In September last year, the Government of the Republic of Srpska signed an agreement on strategic cooperation in the field of renewable energy sources with two China-based companies. One of them was Zhongbo Group.

The first project envisaged by the agreement is a wind farm. A few months earlier, Zhongbo Group was mentioned as a potential investor in the Hrgud wind farm project.

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