Energy and Mining Minister Petar Djokic said electricity production in Republika Srpska can normally run about 35% above domestic demand. He added that the buffer narrowed during summer due to dry weather cutting hydropower output. The Ugljevik thermal power plant also remained offline for an extended period, reducing available generation.
Djokic said the Gacko coal plant continued operating while Ugljevik was expected to return to service. During the period of constrained domestic supply, state-owned utility ERS purchased electricity on the market. The government said the situation reflected reduced local generation capacity rather than a planned change in demand-side conditions.
Regulated power prices and financing constraints
The government is not planning an electricity price increase for now, according to Djokic. He said low regulated prices limit producers’ ability to finance maintenance and reliability improvements. Djokic’s comments linked the pricing framework to investment capacity for keeping plants available.
Solar, wind and hydropower pipeline for supply resilience
Republika Srpska has close to 400 MW of solar capacity, mostly through smaller projects. Two larger solar plants have been completed, and several additional projects are under construction. ERS is also developing a wind farm alongside two major hydropower projects.
Djokic estimated the value of current and planned energy investment at around €2.75 billion. He said the programme is intended to reduce exposure to drought, thermal plant outages and regional power-price volatility. Rapid solar additions are also changing operating needs because generation is concentrated during daylight hours.
This shift increases requirements for system flexibility to balance supply across different hours of the day. Djokic’s remarks pointed to balancing as a separate operational challenge as solar output scales up. ERS’s generation build-out therefore spans both new capacity and grid balancing considerations.
Sepak–Novi Grad gas pipeline prepares additional infrastructure
The government is preparing a new gas pipeline from Sepak to Novi Grad, valued at €650 million excluding VAT. Construction is expected to start in the coming weeks, with financing planned through the state budget over five years. Around €375 million has been allocated for investment from this year’s budget.
The pipeline preparation follows the same period in which drought and thermal outages reduced domestic output and increased reliance on power imports . The investment programme described by Djokic covers both electricity generation expansion and gas infrastructure development .
