Elektroprivreda Bosne i Hercegovine, or EPBiH, has invested approximately €92 million of its own funds in thermal power plants since the beginning of 2024. The spending accelerates maintenance outlays as declining coal production and weak hydrology increase pressure on the company’s generation portfolio. The latest figure follows an earlier period in which EPBiH spent around €72 million between 2015 and 2023.
Thermal spending and its stated focus on availability
EPBiH has therefore committed more capital to its thermal fleet in roughly two and a half years than it did during the preceding nine-year programme. The investment is described as primarily defensive, aimed at preserving plant availability and system security rather than materially expanding coal-fired capacity. This shift in expenditure comes as operational constraints affect fuel supply and generation levels.
Management changes and revised financial losses
EPBiH’s current management was appointed in August 2023. It inherited a financial position assessed as weaker than initially reported. The company’s stated loss of €28.2 million was later revised to €169.5 million after an independent review.
The review also highlighted that EPBiH’s coal-mining subsidiaries had accumulated combined losses of approximately €540 million by the end of 2023. Coal mining is identified as the group’s most significant operational and financial weakness. Lower output has reduced fuel deliveries to EPBiH’s thermal plants, contributing to a decline in electricity generation evident since 2018.
Wholesale purchases driven by supply gap
Hydropower has not provided a reliable counterweight because periods of unfavourable hydrology have simultaneously reduced hydroelectric production. With generation constrained, EPBiH has faced a supply gap that has required electricity purchases on the wholesale market. In some cases, these procurement costs have been substantially above regulated domestic tariffs.
This arrangement creates a structural mismatch between production and procurement costs on one side and regulated revenue on the other. EPBiH reported that it reduced its net loss to €29.6 million in 2024. The deficit was absorbed by existing reserves, supporting short-term liquidity.
Reserves, refurbishment needs, and competing obligations
The drawdown of reserves does not address underlying economics of the generation portfolio, according to the figures cited. Thermal refurbishment can improve availability, heat rates and outage performance, but its financial value remains linked to dependable coal supply and a tariff framework capable of recovering production costs. EPBiH is also carrying unresolved obligations connected with its mining subsidiaries.
The obligations include earlier compensation commitments and unfinished investments such as HPP Vranduk. These liabilities compete for capital with plant maintenance and new renewable generation . Against this backdrop, the current €92 million programme is characterised as a reliability intervention intended to reduce the probability of severe outages and expensive emergency imports .
The return on the expenditure is described as remaining constrained until mining performance, regulated pricing, and EPBiH’s longer-term generation strategy are addressed together .
