Strategic Overview of EPBiH’s Future Plans
The state-owned utility, Elektroprivreda Bosne i Hercegovine (EPBiH), has laid out a comprehensive business strategy for the years 2026 to 2028. This plan aims to solidify its status as the leading electricity supplier in Bosnia and Herzegovina while ensuring robust financial health. The company projects an overall electricity production target of 16,175.5 GWh, contingent upon stable coal procurement and consistent fuel quality.
Financial Commitments and Investment Focus
To support these ambitious objectives, EPBiH plans capital investments totaling approximately €885 million. Funding will primarily come from loans, with around €275 million generated through internal cash flow. A significant portion of this investment is earmarked for enhancing coal mining operations within the EPBiH group, which is crucial for maintaining a reliable fuel supply for its thermal power plants amid ongoing mine restructuring efforts.
Pushing Towards Renewable Energy Initiatives
A key component of EPBiH’s strategy involves a pronounced shift towards renewable energy sources, particularly solar power. The utility intends to develop multiple solar facilities on reclaimed mining land alongside rooftop installations at both corporate buildings and customer sites. Additionally, funds are allocated for acquiring operational renewable projects as well as investing in existing developments while also seeking opportunities to purchase or lease land designated for future solar capacity expansion.
Modernization of Conventional Power Generation Assets
On the traditional generation front, substantial upgrades are planned including flue-gas desulphurization and denitrification systems at Tuzla and Kakanj thermal power plants. Other initiatives include reconstructing Unit 7 at TPP Kakanj along with revitalizing Unit 4 at TPP Tuzla and conducting rehabilitation work at Salakovac hydropower plant.
Evolving Regulatory Landscape: Emissions Charges Implementation
The strategic framework acknowledges forthcoming carbon-related charges associated with emissions from coal-fired facilities across Bosnia and Herzegovina. Both EPBiH and government authorities aim to implement these fees gradually while keeping them minimal; this aligns with their commitment to reducing CO₂ emissions following global standards outlined in the National Energy and Climate Plan.
Compliance Through Institutional Restructuring Efforts
An essential aspect of this strategy includes institutional changes designed to comply with unbundling requirements set forth by recent legislation enacted in August 2023 within the Federation of Bosnia and Herzegovina. As part of these reforms, EPBiH plans to establish a separate distribution system operator that will function as an independent legal entity wholly owned by the company.
Production Forecasts Reflect Operational Goals
The projections indicate that by 2026 ,EPBIh expects electricity output reaching approximately 5 ,311 .8 GWh and total revenues nearing €680 million . However , anticipated pre-tax profits remain modest , estimated around €110 ,000 .
