Bosnia and Herzegovina (BiH) has become increasingly dependent on imported electricity due to insufficient coal production and outdated thermal power plants, says energy expert Almir Muhamedbegović. The country’s electricity generation has fallen by 15% from 2021 to 2024, and it now lacks enough power to meet domestic demand. As a result, electricity imports surged by 120% last year, reaching their highest level in six years. This trend continued into 2024, with imports in the first quarter exceeding the combined total of the previous five years.
The primary issue is the decline in coal production, with BiH’s seven state-owned coal mines producing significantly less between 2018 and 2023. This drop in coal production has led to a shortage of fuel for thermal power plants, which traditionally produce about 60% of the country’s electricity. The situation has been exacerbated by inefficiencies, corruption, and labor strikes within state-owned companies.
Private sector companies, such as EFT, have stepped in to fill the gap, with EFT owning and operating several thermal and hydroelectric plants, including the Stanari coal-fired power plant. Meanwhile, BiH’s three state-owned utilities—Elektroprivreda BiH, Elektroprivreda RS, and Elektroprivreda HZHB—account for the majority of the country’s electricity production, with the latter mostly using hydroelectric sources.
Despite these challenges, there has been little investment in new power generation infrastructure. This has led to the continued deterioration of older power plants, which are struggling to meet demand due to outdated technology and a lack of maintenance.
In the Federation of BiH, coal production in state-owned mines has dropped drastically, and concerns about mismanagement and corruption persist. The country’s energy sector is in crisis, and the government has acknowledged the need for urgent reforms and international assistance.
In the Republika Srpska, the situation is similar, with the state-owned Ugljevik power plant facing a shortage of coal after its coal supplier failed to meet obligations. Additionally, the thermal plants in this region are also aging and require significant investment to continue operating.
Overall, BiH’s energy crisis highlights the urgent need for modernization of its coal industry and power plants, as well as greater investment in renewable energy sources.
