Bosnia and Herzegovina’s electricity transmission operator Elektroprijenos BiH has received approval for up to EUR 46 million in financing from the European Bank for Reconstruction and Development (EBRD) to upgrade its network. The programme will fund four variable shunt reactors at selected substations. The equipment is intended to manage voltage as wind and solar projects add more variable power flows.
The reactors are designed to regulate grid voltage as system conditions change. Voltage control is becoming more important as Bosnia and Herzegovina seeks to connect more clean generation while remaining integrated into regional electricity trading. Upgrading existing substations can help operators maintain stable system conditions without relying solely on new transmission corridors.
The investment is also expected to reduce network losses and improve the reliability of cross-border transmission. Losses in Bosnia and Herzegovina’s transmission system are reported at approximately 1.9%, while losses across the wider electricity system are higher when distribution network infrastructure is included. Cross-border electricity exchanges can help balance supply and demand, but shifting import and export patterns require the transmission system to keep voltage within safe limits.
Network upgrades and renewable integration
A grid’s ability to absorb variable renewable generation is as important to developers as the physical availability of a grid connection point. The project upgrades existing infrastructure rather than adding generation capacity. Its value will depend on timely procurement, installation and integration of the reactors into network operations, allowing future renewable connections to be assessed against improved system stability.
