Bosnia and Herzegovina’s electricity transmission operator Elektroprijenos BiH received approval from the European Bank for Reconstruction and Development (EBRD) for up to 46 million euros to upgrade the country’s transmission network. The financing will support equipment intended to help accommodate additional clean generation.
The programme will fund four variable shunt reactors at selected substations. The equipment is designed to regulate voltage as system conditions change, including when import and export patterns shift.
Voltage management is becoming more important as wind and solar projects bring more variable power flows onto the transmission network. Modernising existing substations and strengthening voltage control can help operators maintain stable system conditions without relying exclusively on new transmission corridors.
For renewable developers, a grid’s ability to absorb variable production matters alongside the physical availability of a connection point. Bosnia and Herzegovina is seeking to connect additional clean generation while remaining integrated into regional electricity trading, where cross-border exchanges can help balance supply and demand.
Network losses in Bosnia and Herzegovina’s transmission system are reported at approximately 1.9%; losses across the broader electricity system are higher when distribution infrastructure is included. The investment is also expected to reduce transmission losses and improve the reliability of cross-border flows, which depend on voltage remaining within safe limits.
The project upgrades infrastructure that is less visible than new power plants. Its value will depend on timely procurement, installation and integration of the reactors into network operations, after which future renewable connections can be assessed against improved system stability.
