The Ugljevik thermal power plant remains out of operation after exhausting suitable coal supplies, leaving Republika Srpska without one of its largest domestic electricity sources. The outage also highlights operational risks in the region’s vertically integrated coal-and-power setup.
The unit was taken offline about two weeks ago, shortly after completing an emergency overhaul that lasted roughly 60 days. Management said the plant has not returned to sustained production, with the mining operation unable to deliver sufficient coal meeting required quality standards.
Restart timing depends on coal stocks and generation economics
No firm restart date has been announced by management. Reportedly, existing coal inventories would cover only 10 to 15 days of generation, which makes an immediate return to service commercially unattractive without a more reliable fuel supply. Starting a large thermal unit involves significant costs, and another short run followed by a forced shutdown would further affect the plant’s financial position.
Management indicated it intends to coordinate any restart with ERS, Republika Srpska’s power utility. The aim is to align operation with a period when wholesale electricity prices support the cost and risk of running with limited coal stocks.
Ugljevik East 2 mine delays constrain long-term fuel supply
The key issue is the delayed development of the Ugljevik East 2 surface mine, expected to provide the plant’s principal long-term coal supply. Acting director Žarko Novaković identified the start of extraction at East 2 as an immediate priority for the company. However, the mine has not yet reached stable output levels needed for continuous electricity generation.
The Republika Srpska government previously awarded a €120 million concession related to coal production at East 2 to Russian businessman Rashid Serdarov. The concession was presented as a solution to Ugljevik’s fuel-security concerns, but expected coal volumes have not materialised. As a result, the plant has remained dependent on depleted or increasingly difficult mining areas.
Overburden removal and mining capacity remain bottlenecks
Union representatives estimated that about 20 million cubic metres of overburden must be removed before reaching the main coal seam. They said current equipment and staffing levels are insufficient to handle work at that scale. Mining activity has reportedly focused on removing soil and rock rather than producing enough usable coal for the generating unit.
The prolonged outage adds financial exposure for ERS as it replaces lost Ugljevik generation using other domestic assets or electricity imports. Replacement costs could rise during summer demand peaks when market prices are higher. The outage also removes export volumes that would otherwise support the utility’s cash flow.
Outage reflects broader operational coupling across mine and power assets
The situation is not described as a short-term maintenance problem, but as evidence of declining reliability in a model where the power plant, mine, environmental obligations and electricity-market exposure operate together. Without accelerated overburden removal, new equipment and a credible mine-development schedule, the plant is expected to remain vulnerable to repeated outages even after the current shutdown ends.
