Bosnia and Herzegovina’s electricity transmission operator Elektroprijenos BiH has received approval for up to €46 million in financing from the European Bank for Reconstruction and Development (EBRD) to upgrade its transmission network. The programme will finance four variable shunt reactors at selected substations, strengthening voltage management as renewable generation adds more variable power flows.
The reactors are designed to regulate voltage as system conditions change. Voltage control is becoming more important as Bosnia and Herzegovina seeks to connect additional clean generation while remaining integrated into regional electricity trading. Modernising existing substations can help operators maintain stable power-system conditions without relying exclusively on new transmission corridors.
That flexibility matters to renewable developers because a grid’s ability to absorb variable production is as important as the physical availability of a connection point. The investment is also expected to reduce network losses and improve the reliability of cross-border transmission. Losses in Bosnia and Herzegovina’s transmission system are reported at approximately 1.9%, while losses across the broader electricity system are higher when distribution infrastructure is included.
Cross-border electricity exchanges can help balance supply and demand, but changing import and export patterns require the transmission system to keep voltage within safe limits. The project upgrades less visible network infrastructure rather than adding generation capacity. Its value will depend on timely procurement, installation and integration of the four reactors into network operations, enabling future renewable connections to be assessed against improved system stability.
