The recent challenges faced by the Ugljevik thermal power plant, including its 10-day shutdown due to a coal shortage, highlight the ongoing issues in the energy sector of the Republic of Srpska. While the plant is back online, the situation remains precarious, with significant investments required to stabilize both coal and electricity production. The General Manager of the state-owned power utility, Elektroprivreda Republike Srpske (ERS), Luka Petrović, emphasized that revitalizing and modernizing the coal mines and thermal power plants in Ugljevik and Gacko is a top priority. All of next year’s revenue from electricity sales will be directed toward these facilities to ensure their long-term viability.
The Gacko plant has also faced similar challenges, including a shutdown in early December due to poor coal quality and a lack of fuel oil, which resulted in significant financial losses. In total, ERS has been forced to import electricity worth millions of euros due to these outages, further straining the financial stability of the utility.
To address the issues, Petrović highlighted that Ugljevik requires a substantial overhaul, estimated at EUR 100 million, to remain operational over the next 20-30 years. The poor quality of coal has also exacerbated the problem, increasing coal consumption by 30%. This overhaul is planned for April 1, with the company also aiming to expand the mine during this period.
In addition to these internal challenges, Ugljevik is facing legal and financial pressures. The plant has been ordered to pay EUR 72.2 million in damages to Slovenia’s Holding Slovenske Elektrarne and is required to supply one-third of its electricity output for the rest of its operational life. Meanwhile, Croatia’s state-owned HEP Group is demanding EUR 100 million in damages related to the Gacko plant, further complicating the situation for ERS.
These challenges paint a concerning picture for the energy sector in the region, with the long-term stability of its power plants and coal mines requiring urgent attention and substantial financial investment.
