Coal-fired power plants operated by Elektroprivreda Republike Srpske (ERS), a utility based in the Republic of Srpska, are aging and require significant investments for maintenance. According to Petar Đokić, the Minister of Energy and Mining of the Republic of Srpska, it is more cost-effective to build new plants rather than maintain these outdated facilities. ERS operates two thermal power plants, Gacko and Ugljevik, which together account for approximately 70% of the company’s total production. ERS is owned by the government of the Republic of Srpska.
In recent months, ERS has faced severe challenges, including a shortage of coal, which led to the temporary shutdown of production at the Ugljevik plant during the winter. Đokić stated that the government lacks the EUR 357 million needed to ensure the stable operation of the two power plants. He also pointed out that both coal plants are over 40 years old, making them costly to maintain, and suggested that building a new plant would offer a more reliable and cost-efficient electricity supply.
In addition to the challenges surrounding the aging plants, the Republic of Srpska is considering the acquisition of Comsar Energy Republika Srpska, a company owned by Russian businessman Rashid Serdarov. Comsar holds a concession for the construction of the Ugljevik 3 coal power plant and coal mining in the region. Employees of the Ugljevik mine and its 300 MW power plant have called for the purchase of Comsar, arguing that it is the only way to secure a sufficient coal supply for the existing facility.
Đokić emphasized that the government of the Republic of Srpska should work to find a financial partner for the construction of a new thermal power plant in Ugljevik. He reminded that the government had supported the Ugljevik 3 project for years, but the project stalled due to a worsening investment climate in the coal sector, particularly after 2015. This was largely due to the global push for decarbonization, which seeks to reduce reliance on coal power and prevent the construction of new coal plants.
The government has received an offer to purchase Comsar and has authorized Gas Res to begin negotiations, contingent upon an assessment of Comsar’s value. Along with coal supply issues, RiTE Ugljevik has additional financial challenges. The company began repaying EUR 125 million in damages to Slovenia’s state-owned Elektrogospodarstvo Slovenije Razvoj in Inženjering (EGS-RI) in early 2024, following a ruling by the Arbitration Council in Belgrade. Furthermore, RiTE Ugljevik is obligated to supply one-third of the electricity it generates to EGS-RI for the remainder of the plant’s operation.
