Tariff position and price outlook
Bosnian Serb power utility ERS has ruled out an immediate electricity-price increase, according to ERS General Director Luka Petrovic. The utility said it is relying on new wind, solar and hydropower projects to expand supply and help protect its low-price position despite weak hydrological conditions. Business customers in the Republic of Srpska pay around €75/MWh, compared with €150/MWh or more in some neighbouring markets, Petrovic said.
ERS said its approach is aimed at preserving the price gap by adding lower-cost generation and using surplus electricity sales to strengthen revenue. The plan is intended to improve the economics of a generation portfolio that remains dominated by coal and hydropower.
Renewables tenders and solar contracts
Tendering is under way for the Hrgud wind farm. A contract for the Trebinje 3 solar project is expected after the selection of a contractor with secured financing. ERS also expects Trebinje 2 to advance.
The utility is continuing work on the Bistrica and Dabar hydropower projects. It is also developing Gornja Drina with Serbia.
Hydrology, maintenance and replacement power exposure
The operating environment remains difficult, with drought and poor hydrology reducing output. The HET hydropower system has entered maintenance expected to last at least one month. Improved operation at the Ugljevik coal plant has provided some support.
ERS said it is effectively asking its investment pipeline to carry the burden of keeping tariffs low until new projects begin producing. Until then, its price commitment remains exposed to hydrology, thermal-plant availability and the cost of replacement power.
