Bosnia and Herzegovina’s RiTE Ugljevik coal-fired power plant is expected to cease operations on October 15. The expected shutdown comes as worsening coal shortages coincide with mounting financial obligations. The change is likely to increase electricity imports and add pressure to the power sector in Republika Srpska.
The latest disruption follows persistent difficulties at the Istok 2 coal mining area. Unresolved property and land-access issues have prevented mining equipment from moving into areas needed to raise production. Remaining coal stocks enabled the plant to keep operating for two additional days beyond an earlier anticipated shutdown.
Istok 2 concession and repeated generation interruptions
The stoppage points to a structural challenge for RiTE Ugljevik, despite access to sizeable coal resources. The company has struggled to develop those resources quickly enough to sustain continuous power generation. Ugljevik has also experienced repeated interruptions, including another shutdown in July after about two and a half months of operation.
In January 2026, the Republika Srpska government transferred the Istok 2 concession to RiTE Ugljevik. The transfer followed years of disputes over the concession’s earlier award to Comsar Energy RS. The deposit at Istok 2 is estimated at approximately 50 million tonnes of coal, potentially sufficient for around 25 years of plant operation.
Access to reserves has not resolved production constraints, according to the reported situation at Istok 2. The latest stoppage threatens electricity availability within Republika Srpska. It comes while regional wholesale prices remain elevated and neighbouring markets face their own generation and import constraints.
Any additional electricity procurement could increase financial pressure on local utilities. This risk is heightened if replacement power must be bought during expensive trading periods.
Liquidity crisis and arbitration-related liabilities
RiTE Ugljevik is also dealing with a severe liquidity crisis. The company’s bank accounts have been blocked, supplier debts have accumulated, and its financial position has deteriorated, although formal bankruptcy proceedings have not been initiated.
A further burden relates to a dispute over Slovenian investment in the plant. Earlier arbitration proceedings generated substantial financial obligations, including awards of €67 million and €58.2 million, along with rights tied to future electricity production.
A settlement reached in April 2026 set compensation of €188 million for Slovenian energy company HSE. The settlement also preserved HSE’s entitlement to one-third of future electricity output. In June, RiTE Ugljevik issued about €13 million in new shares as part of efforts to meet its financial commitments.
The company’s share capital had previously been reduced from roughly €130 million to €35 million. Trading in its shares on the Banja Luka Stock Exchange was also temporarily suspended.
Link between coal supply and financing constraints
The operational and financial pressures are reported as closely connected. Without sufficient coal, the plant cannot maintain electricity production needed to generate revenue, service debt, or meet obligations linked to future output. At the same time, weak liquidity makes it increasingly difficult for RiTE Ugljevik to finance mining operations and equipment required to restore reliable generation.
For Republika Srpska, replacing lost electricity output is an immediate issue following the interruption. The longer-term challenge is whether Ugljevik can secure mining access, stabilise production, and restructure its obligations before further interruptions make recovery more expensive.
