Hodovo, once a quiet zone north of Stolac, has been transformed over the past decade into the largest solar energy hub in Bosnia and Herzegovina. Today, the area hosts more than 156 MW of installed capacity in solar power plants, the majority of which consists of Hodovo Solar Park (92.5 MW) and Stolac Solar Park (64 MW), operated by the company Eco-Wat d.o.o., owned by the Brajković brothers. At this location, land was divided into micro-units and this large project was split into multiple small power plants of up to 150 kW so that each could enter the subsidy system and avoid paying concession fees.
A case study conducted by TI BiH states that the development of this project began with small installations in 2012, when companies such as GP Toming d.o.o., owned by Miro Tomas, and Bičakčić d.o.o., owned by former FBiH Prime Minister Edhem Bičakčić, installed the first small power plants, utilizing preferential feed-in tariffs that were up to ten times higher than the market price of electricity.
The key incentive mechanism was prescribed by the Law on the Use of Renewable Energy Sources and Efficient Cogeneration from 2013, which guaranteed the purchase of electricity at fixed prices financed by fees charged to citizens through their electricity consumption bills.
Such incentives enabled rapid return on investment, with small power plants recovering costs within 3 to 7 years. However, this system led to significant interest from politically connected investors in building power plants, which resulted in exceeding the number of issued dynamic quotas.
In the early phase of this sector’s development, 16,969 kW more quotas were allocated, over 12 million KM was illegally disbursed, and conflicts of interest were recorded, which is why an investigation by the Special Department for Corruption, Organized and Inter-Cantonal Crime (POSKOK) is ongoing against the former director of the Operator for RES and EC, Boriša Misirača.
While information about quota allocation methods was concealed within the Operator, politically connected tycoons dominated the Hodovo business zone. The largest installation in the business zone belongs to the company Eco-Wat d.o.o., owned by Dejan Brajković and his brother Tihomir, who is also known as the owner of the construction company Tibra Pacifik. Tihomir Brajković was convicted in 2019 for tax evasion of 2.39 million KM. This company had previously received tens of millions of KM in subsidies for small hydroelectric power plants.
How Was the Land Acquired?
Land conversion previously contributed to the solar boom. Over 120 hectares of state-owned agricultural and forest land in Hodovo was converted to construction land through the Spatial Plan of Stolac Municipality 2013–2023, and then sold at minimal prices (approximately 3 KM/m²). In 2022, Eco-Wat first reserved and then purchased 90 ha of this land. The draft Spatial Plan 2024–2034 envisioned expansion to over 1,200 ha, but in November 2025, the cantonal inspection of HNK prohibited its implementation due to procedural deficiencies and inconsistencies with cantonal plans.
Non-governmental organizations and civic initiatives such as “Stolac Resistance” have accused local authorities of lack of transparency, absence of public consultations, and favoritism toward investors, while the local community sees minimal benefits despite significant investments.
The same criticisms were raised by auditors from the Audit Office of the Institutions of the Federation of BiH regarding the operations of the Operator for RES and EC, who issued a negative opinion in their financial audit report due to material errors in financial statements and violations of law in the form of failure to publish dynamic quotas and producer lists on the website, incomplete project registers, illegal employment without public announcements, violations of the Public Procurement Law, and exceeding quotas for solar power beyond the Action Plan.
Corruption Risks
The Hodovo case illustrates how lack of transparency in the early phase of energy transition can lead to profit accumulation within narrow circles with minimal benefit to the community. Legal deficiencies that enabled project fragmentation to enter the subsidy system and avoid paying concession fees allowed preferential treatment for a number of investors who today receive multiple times higher subsidies and earnings for the same amount of energy produced.
To mitigate irregularities, a new Law on RES and EC was adopted in 2023, which replaced feed-in tariffs with auction mechanisms—so-called FIT auctions for small facilities up to 150 kW and FIP premiums for large projects. The first FIT auction was held in 2025 via the e-platform of the Operator for RES and EC, where investors compete for the most favorable conditions, which should increase transparency and reduce costs. However, this has only resolved part of the problem regarding subsidy allocation, while the fragmentation of such large projects continues to avoid payment of concession fees and causes damage to public finances.
For this reason, TI BiH has proposed amendments to the laws regulating this area that would treat multiple solar power plants owned by the same entity at the same location as a single project, which would prevent abuse of the subsidy and concession system. Additionally, the question remains regarding the conversion and sale of state-owned land for energy projects, which should be conducted exclusively through public tenders with a starting price based on market value and independent appraisal.
