Bosnian Serb power utility ERS has ruled out an immediate electricity-price increase, betting that new wind, solar and hydropower projects can expand supply and protect its low-price position despite weak hydrological conditions.
Business customers in the Republic of Srpska pay around €75/MWh, compared with €150/MWh or more in some neighbouring markets, ERS General Director Luka Petrovic said.
ERS plans to preserve that gap by adding lower-cost generation and using surplus electricity sales to strengthen revenue. The strategy is intended to improve the economics of a portfolio that remains dominated by coal and hydropower.
Tendering is under way for the Hrgud wind farm, while a contract for the Trebinje 3 solar project is expected after the selection of a contractor with secured financing. Trebinje 2 is also expected to advance.
The utility is continuing work on the Bistrica and Dabar hydropower projects and on Gornja Drina, which is being developed with Serbia.
The immediate operating environment remains difficult. Drought and poor hydrology have reduced output, while the HET hydropower system has entered maintenance expected to last at least one month. Improved operation at the Ugljevik coal plant has provided some support.
ERS is effectively asking its investment pipeline to carry the burden of keeping tariffs low. Until those projects begin producing, its price commitment will remain exposed to hydrology, thermal-plant availability and the cost of replacement power.
