Republika Srpska is accelerating investment in electricity generation and gas infrastructure after drought and thermal plant outages reduced domestic output and increased dependence on power imports.
Energy and Mining Minister Petar Djokic said electricity production can normally exceed domestic demand by around 35%, but that margin largely disappeared during the summer as dry weather reduced hydropower generation and the Ugljevik thermal power plant remained offline for an extended period.
The Gacko coal plant continued operating and Ugljevik is expected to return to service, but state-owned utility ERS has had to purchase electricity from the market while domestic generation remains constrained.
The government is not planning an electricity price increase for now, although Djokic said low regulated prices limit the ability of producers to finance maintenance and reliability improvements.
Republika Srpska already has close to 400 MW of solar capacity, mostly in smaller projects. Two larger solar plants have been completed and several more are under construction.
ERS is also developing a wind farm and two major hydropower projects. Djokic estimated the value of current and planned energy investment at around €2.75 billion, with the programme intended to reduce exposure to drought, plant outages and regional power-price volatility.
Rapid solar expansion is creating a separate balancing challenge because most generation is concentrated during daylight hours, increasing the need for greater system flexibility.
The government is also preparing a new gas pipeline from Sepak to Novi Grad, valued at €650 million excluding VAT, with construction expected to begin in the coming weeks. Financing is planned through the state budget over five years, while around €375 million has been allocated for investment from this year’s budget.
