Bosnian Serb power utility ERS has ruled out an immediate electricity-price increase, citing expectations that additional wind, solar and hydropower capacity will expand supply. The decision is linked to the utility’s aim to protect its low-price position despite weak hydrological conditions.
ERS General Director Luka Petrovic said business customers in the Republic of Srpska pay around €75/MWh. He contrasted that level with €150/MWh or more in some neighbouring markets.
Renewables and hydropower projects in ERS tendering and development
ERS is pursuing a strategy intended to preserve the price gap by adding lower-cost generation and using surplus electricity sales to strengthen revenue. The plan is designed to improve the economics of a generation portfolio still dominated by coal and hydropower. Tendering is under way for the Hrgud wind farm.
A contract for the Trebinje 3 solar project is expected after selection of a contractor with secured financing. Trebinje 2 is also expected to advance. In parallel, the utility continues work on the Bistrica and Dabar hydropower projects.
ERS is also continuing development activities for Gornja Drina, which is being developed with Serbia. The near-term operating environment remains difficult as drought and poor hydrology have reduced output. Maintenance at the HET hydropower system is expected to last at least one month.
Coal output support and exposure before new projects start producing
Improved operation at the Ugljevik coal plant has provided some support during the period of reduced hydropower generation. ERS is effectively relying on its investment pipeline to keep tariffs low until new projects begin producing. Until then, its price commitment remains exposed to hydrology, thermal-plant availability, and the cost of replacement power.
