The Republic of Srpska (RS) is pressing ahead with a major expansion of its hydropower sector, driven by significant untapped water resources that remain far below their full potential, according to Minister of Energy and Mining Petar Đokić. Current assessments indicate that only about one-third of the entity’s hydropower capabilities have been developed so far, leaving considerable space for both new projects and upgrades of existing facilities. RS officials emphasize that boosting renewable generation is a strategic priority, alongside strengthening the resilience of the entire energy system.
One of the flagship developments is the 159 MW Dabar hydropower plant, part of the wider Gornji Horizonti system. Construction has reached roughly 50 percent completion, with the excavation of a 12-kilometer tunnel marking one of the project’s most demanding engineering components. Additional capacity is being built on the Bistrica river, where three hydropower plants are scheduled to enter operation by the end of 2026.
RS is simultaneously advancing several joint undertakings with neighboring Serbia. Among them is the Buk Bijela project, which recently received a positive environmental assessment, enabling further progress. Plans for seven hydropower plants along the Bosna river, as well as the ongoing construction of the 37 MW Mrsovo plant on the Lim river, highlight the scope and intensity of the current investment cycle. So far, 37 small hydropower plants with a combined output of 127 MW have already been commissioned.
The hydropower investment pipeline in RS is valued at around 500 million euros, while solar and wind projects in various stages of development are estimated at approximately 1.75 billion euros.
However, transmission infrastructure remains one of the most pressing challenges. Limited domestic and cross-border grid capacity threatens the integration of new renewable projects and could become a major bottleneck in the coming years. To address this, RS energy companies are allocating significant resources to reinforce internal network links and strengthen regional interconnections to ensure stable power flows and efficient market operation.
Climate variability poses an additional obstacle. Several unusually dry years — including 2022, 2024, and the current year — have led to substantial declines in hydropower production. Authorities note that more effective water-resource management will be essential to safeguarding generation potential and ensuring long-term system reliability.
RS is also working to enhance its electricity trading framework, deepen regional market integration, and secure consistent supply for consumers. Strengthening cooperation with the Federation of Bosnia and Herzegovina is viewed as particularly important due to the high level of interdependence within the power system. Officials remain confident that strategic investments, improved coordination, and regional alignment will unlock the full value of hydropower despite growing environmental and infrastructural challenges.
