The Government of the Republic of Srpska (RS) is preparing to approve new borrowing of approximately 204 million euros, aimed at reinforcing coal-based electricity generation and modernizing the distribution network. Energy and Mining Minister Petar Djokić highlighted that state guarantees will be reserved to support loans financing both maintenance and development projects within the electricity system.
Under the proposed plan, the coal-fired power plants Gacko and Ugljevik would each receive financing of around 75 million euros, while the remaining 50 million euros would be allocated to upgrading the electricity distribution infrastructure. Minister Djokić emphasized that prolonged power outages during severe weather events—sometimes lasting five to six days—expose structural weaknesses in the network.
He added that current tariffs approved by the regulator do not generate enough revenue for distribution companies to fully address infrastructure needs. Still, the planned borrowing and guarantees are expected to relieve some financial pressure and create room for additional investment.
In parallel, power utility ERS is negotiating a 43.5 million euro loan with a European bank to support network rehabilitation projects. ERS CEO Luka Petrović noted that further investments are being prepared for the modernization of Elektrokrajina, including the introduction of smart technologies to improve monitoring and reduce technical losses across the distribution system.
