Prolonged drought and high temperatures have sharply reduced hydropower production in Bosnia and Herzegovina, while the electricity system remains stable, according to state-owned utility Elektroprivreda BiH. The utility said months of below-average rainfall weakened river inflows and reduced water availability across its hydropower portfolio.
The hydrological shortfall has led EPBiH to preserve stored water and adjust hydro dispatch. Hydroelectric plants are used primarily during peak-demand periods and for voltage support rather than continuous baseload generation. Coal-fired power plants have taken on a larger share of electricity production as a result.
Thermal capacity and supply continuity
EPBiH said its available thermal capacity, operational reserves and advance planning are sufficient to supply households and businesses without interruption. The utility indicated that its preparation for a dry hydrological year included maintaining reserve thermal capacity. Additional market purchases are not expected unless an unplanned outage removes one of the thermal units from service.
EPBiH described the potential outage scenario as the principal financial risk. It said hydropower has low marginal operating costs, while replacement electricity from coal plants or the regional wholesale market is substantially more expensive. A simultaneous hydrological deficit and thermal outage could therefore create earnings and liquidity exposure.
Reservoir levels and ecological flow constraints
The Jablanica reservoir, EPBiH’s principal storage facility, remains below its seasonal target after weak inflows between March and July. Water levels at the smaller Grabovica and Salakovac balancing reservoirs are more stable, but their operation depends on releases from Jablanica.
EPBiH said it continues to maintain the prescribed ecological flow downstream, which limits how much water can be retained solely for power generation. The company added that it cannot provide a fixed calculation of how much lost hydroelectric production is replaced by coal because dispatch conditions and electricity demand change day to day.
Financial outlook and regulated retail prices
EPBiH does not currently expect the drought to have a significant effect on its financial results. It also ruled out an immediate increase in regulated retail prices. The utility said system resilience is increasingly linked to the availability of aging coal-fired units during periods when drought reduces hydropower flexibility.
