Prolonged drought and high temperatures have sharply reduced hydropower production in Bosnia and Herzegovina, while the electricity system remains stable, according to state-owned utility Elektroprivreda BiH. The utility said months of below-average rainfall weakened river inflows and reduced water availability across its hydropower portfolio. This has affected how water is managed within the generation fleet.
EPBiH reported that the shortfall has required it to preserve stored water and schedule hydroelectric plants mainly for peak-demand periods and for voltage support. The company said this approach differs from continuous baseload generation. Dispatching hydro in this way is intended to maintain system needs under reduced inflows.
Thermal generation share rises as water availability declines
With hydropower output constrained, coal-fired power plants have taken a larger share of electricity production. EPBiH stated that its available thermal capacity, operational reserves, and advance planning are sufficient to supply households and businesses without interruption. The utility linked the continued supply capability to its thermal readiness.
EPBiH said it could not provide a fixed calculation of how much lost hydroelectric production is being replaced by coal. It attributed the variability to changing dispatch conditions and shifts in electricity demand from day to day. As a result, the replacement balance depends on real-time operating requirements.
Reservoir levels and ecological flow constraints
The Jablanica reservoir, EPBiH’s principal storage facility, remains below its seasonal target after weak inflows between March and July. Water levels at the smaller Grabovica and Salakovac balancing reservoirs are described as more stable. Their operation, however, depends on releases from Jablanica.
The utility also maintains a prescribed ecological flow downstream, which limits how much water can be retained solely for power generation. EPBiH said this constraint affects reservoir management decisions during the drought period. The ecological requirement therefore shapes available volumes for generation.
Market purchases and financial risk from outages
EPBiH said its position remains manageable because it prepared for a dry hydrological year by keeping reserve thermal capacity available. It does not expect additional market purchases unless an unplanned outage removes one of its thermal units from service. The company framed this contingency as the main driver of operational uncertainty.
The utility identified that risk as primarily financial because hydropower has low marginal operating costs, while replacement electricity from coal plants or the regional wholesale market is substantially more expensive. It said a simultaneous hydrological deficit and thermal outage could turn an operational issue into material earnings and liquidity exposure. EPBiH did not indicate any change to that assessment during the period described.
Drought impact on regulated prices ruled out
EPBiH does not currently expect the drought to have a significant effect on its financial results. It also ruled out an immediate increase in regulated retail prices. The utility said system resilience is increasingly tied to the availability of aging coal-fired units during periods when drought reduces hydropower flexibility.
