Rapid expansion of small-scale solar installations is significantly reshaping the energy profile of utility company ERS, with the number of connected solar systems reaching around 2,200 units. In the past year alone, nearly 1,900 new installations were added to the distribution network, pushing total installed solar capacity beyond 450 MW, a level comparable to the output of two thermal power plants.
Despite strong growth in renewables, overall electricity generation in 2025 fell below expectations. Total production reached 4,366 GWh, which is 143 GWh under the planned level. Both coal-fired power plants and hydropower facilities underperformed, with output declining by 2.8% and 3.48% respectively compared to projections. At the same time, the system achieved historically low distribution losses of 8.54%, indicating improved network efficiency.
Electricity consumption patterns revealed ongoing structural challenges. Customers consumed a total of 3,831 GWh, split between public supply and market-based procurement. The regulated supply segment generated an estimated financial deficit of around €30 million, which significantly contributed to the company’s overall negative financial result.
Low electricity prices—among the lowest in Europe and the region—have been identified as a key driver of these losses. Company executives noted that aligning tariffs with neighboring markets could have materially changed the outcome. In their assessment, selling electricity at price levels similar to utilities such as EPBiH or Serbia’s EPS would have resulted in substantial profits instead of deficits.
Financial pressures were further intensified by unfavorable hydrological conditions, leading to an estimated total annual loss of around €28 million. ERS officials expect that production targets for 2026 may also remain unmet, partly due to reduced output from the Ugljevik thermal power plant, although improved water inflows could help mitigate some of the shortfall.
At the same time, long-term development plans remain under consideration. There is ongoing interest in constructing three hydropower plants on the Drina River: Rogatica (113 MW), Tegare (112 MW), and Dubravica (87 MW). A potential ownership structure could include majority participation by EPS, alongside stakes held by ERS and a partner from the Federation of Bosnia and Herzegovina, reflecting a possible cross-border cooperation model in future hydropower development.
