Strategic Shift Towards Renewables
The state-owned utility of Bosnia and Herzegovina, EPBiH, has unveiled its comprehensive business strategy for the years 2026 to 2028. This plan aims not only to solidify EPBiH’s position as the leading electricity supplier in the region but also to enhance financial performance through significant investments and a transition towards renewable energy sources.
Production Targets and Financial Outlook
Over the three-year period, EPBiH targets an electricity output of approximately 16,175.5 GWh. Achieving this goal is contingent upon securing reliable coal supplies, maintaining consistent fuel quality, and ensuring operational reliability across production facilities. The company anticipates capital investments totaling around €885 million, primarily financed through loans alongside about €275 million from operating cash flow.
Sustainable Energy Initiatives
A key focus of EPBiH’s strategy is a marked shift towards enhancing its renewable energy portfolio, particularly solar power generation. Plans include establishing multiple solar plants on reclaimed mining land along with rooftop installations on both corporate buildings and customer sites. Additionally, funds are allocated for acquiring existing renewable projects while investing in ongoing developments and securing land for future solar capacity expansion.
Upgrades to Conventional Power Infrastructure
The strategy does not overlook conventional energy operations; it includes substantial upgrades such as installing flue-gas desulphurization units at Tuzla and Kakanj thermal power plants. Noteworthy rehabilitation efforts will be directed toward Unit 7 at TPP Kakanj, revitalization of Unit 4 at TPP Tuzla, as well as improvements at Salakovac hydropower plant.
Coping with Carbon Regulations
A gradual introduction of carbon-related charges targeting emissions from coal-fired facilities is another crucial element of the new strategic outlook. Both EPBiH and governmental bodies aim to implement these fees cautiously while demonstrating compliance with international emission reduction commitments outlined in Bosnia’s forthcoming National Energy and Climate Plan.
Institutional Restructuring Efforts
In line with recent regulatory changes under the Federation of Bosnia and Herzegovina’s electricity law effective August 2023, EPBiH plans to set up a separate distribution system operator that will function independently yet remain wholly owned by the utility company itself—an essential step toward meeting unbundling requirements mandated by EU standards.
Future Production Projections:
For FY 2026 alone, EPBiH estimates an electricity production volume reaching 5 ,311 .8 GWh , total revenue approximating €680 million , alongside a modest pre-tax profit projected around €110 ,000 .
