The electricity sector in the Republic of Srpska (RS) has demonstrated resilience amid significant operational hurdles in 2025, continuing its investment trajectory despite adverse conditions. The region faced exceptionally poor hydrological circumstances and challenges related to thermal power plants, including inconsistent coal quality and supply disruptions, which collectively led to a decline in overall electricity generation. Nonetheless, consumer electricity supply remained stable, with prices continuing to rank among the lowest in Southeast Europe.
A pivotal achievement was marked by the completion of the main tunnel at the Hydropower Plant (HPP) Dabar, a key project within the Upper Horizons hydropower system. Originally envisioned over seventy years ago, this project has faced numerous delays attributed to political disputes and administrative hurdles. The recent breakthrough of the 12-kilometer tunnel, executed with local expertise, signifies a major advancement. HPP Dabar is being developed through a partnership with China’s Gezhouba Group, with initial electricity production anticipated by late 2027 or early 2028.
Once operational, HPP Dabar is expected to generate more than 500 GWh annually, which will help mitigate the generation shortfall experienced during this notably dry year. Updated forecasts suggest that hydropower facilities along the Trebišnjica River will perform better than expected, while those on the Vrbas River are meeting projections. However, output from Drina facilities is anticipated to fall slightly short of targets.
In the thermal power sector, TPP Gacko emerged as a reliable contributor despite facing challenges such as poor coal quality and undergoing significant maintenance for 68 days. The plant exceeded its annual generation goals and accounted for nearly one-third of total domestic electricity consumption.
To address any remaining deficits in electricity supply, imports were utilized effectively, ensuring that households and industries experienced uninterrupted service. Consequently, the RS power system maintained stability throughout the year, successfully avoiding restrictions even under some of the most challenging operational conditions witnessed in recent history.
