Bosnia and Herzegovina’s electricity import costs have risen sharply as declining coal and hydropower production erodes a generation surplus that once made the country one of the more reliable exporters in Southeast Europe.
Electricity imports cost approximately €322 million last year, more than twice the previous year’s amount. Exports were still higher at around €444 million, leaving the country a net exporter in value terms, but the gap has narrowed substantially.
The deterioration extends across the generation fleet. National thermal generation fell 7% in 2025, while hydropower output declined 8%.
Fuel availability is becoming an additional constraint. Brown coal production has fallen 29.6%, while lignite production declined 19.4%, adding pressure to an ageing thermal fleet already facing operational problems at mines and generating units.
More recent Federation of Bosnia and Herzegovina data show little improvement. Net electricity generation fell 6.3% year on year to 462 GWh in July 2026, while thermal output declined to 273 GWh from 300 GWh.
The weakening supply balance has also increased pressure on retail electricity prices. Households supplied by EPBiH saw tariffs increase 10% from August 2024, followed by another average increase of 6.85% in September 2025.
Unless generation recovers, Bosnia could become increasingly dependent on imports at the same time utilities need substantial capital to maintain mines, refurbish ageing generating assets and replace capacity.
That shift would represent a structural change for a market that historically relied on domestic coal and hydro generation to maintain a substantial regional export position.
