The electricity sector in the Republic of Srpska (RS) has shown resilience in 2025, navigating significant operational hurdles while continuing to attract investments. The region faced severe hydrological challenges and encountered difficulties with thermal power generation due to inconsistent coal quality and supply interruptions. Despite these setbacks, the reliability of electricity supply remained intact, and consumer prices continued to rank among the lowest in Southeast Europe.
A significant development was marked by the completion of the main tunnel at HPP Dabar, a key project within the Upper Horizons hydropower system. Initially proposed over seventy years ago, this project has faced numerous delays attributed to political strife, administrative hurdles, and legal challenges. The recent breakthrough of the 12-kilometer tunnel, executed with local expertise, signifies a major advancement in infrastructure development. The hydropower plant is being constructed on a turnkey basis in collaboration with China’s Gezhouba Group, with initial operations anticipated by late 2027 or early 2028.
Once operational, HPP Dabar is expected to generate more than 500 GWh of electricity annually, which will help mitigate the shortfall experienced during this dry year. Current production forecasts suggest that hydropower facilities along the Trebišnjica River will likely exceed their output expectations, while plants on the Vrbas River are performing as planned. In contrast, the Drina facilities are projected to produce slightly below target levels.
On the thermal side, TPP Gacko has emerged as the most dependable producer despite facing challenges related to coal quality and undergoing a major maintenance overhaul lasting 68 days. The plant managed to surpass its annual generation targets and accounted for nearly one-third of total domestic electricity consumption.
To address any remaining supply deficits, RS has relied on electricity imports, ensuring that both households and industries received uninterrupted power throughout the year. This strategic approach has allowed the RS power system to maintain stability even under some of the most challenging operational conditions witnessed in recent times.
