Bosnia and Herzegovina’s RiTE Ugljevik is expected to cease operations on October 15, with worsening coal shortages coinciding with mounting financial obligations. The shutdown raises the prospect of increased electricity imports and additional pressure on the power sector in Republika Srpska. The latest interruption follows ongoing difficulties affecting coal supply to the plant.
Operations have been disrupted after persistent problems at the Istok 2 coal mining area. Unresolved property and land-access issues have prevented mining equipment from moving into areas needed to raise production. Coal stocks remaining at the site allowed the plant to continue for two additional days beyond an earlier anticipated shutdown.
Istok 2 concession and repeated generation interruptions
The stoppage reflects constraints facing RiTE Ugljevik despite access to coal resources. The company has struggled to develop those resources quickly enough to sustain continuous power generation. Ugljevik has also experienced earlier interruptions, including another shutdown in July after about two and a half months of operation.
In January 2026, the Republika Srpska government transferred the Istok 2 concession to RiTE Ugljevik. The transfer followed years of disputes related to the concession’s earlier award to Comsar Energy RS. The deposit is estimated at around 50 million tonnes, which could support roughly 25 years of plant operation if access issues are resolved.
Access to reserves has not removed production constraints tied to mining operations. The latest stoppage threatens electricity availability within Republika Srpska while regional wholesale prices remain elevated. Neighbouring markets are also dealing with their own generation and import constraints, limiting options for replacement supply.
Additional electricity procurement could increase financial pressure on local utilities, particularly if replacement power must be bought during expensive trading periods. For Republika Srpska, replacing lost output is the immediate concern as the outage approaches. Longer-term recovery depends on whether Ugljevik can secure mining access, stabilise production, and address its obligations before further interruptions occur.
Liquidity crisis and arbitration-related financial burdens
RiTE Ugljevik is also dealing with a severe liquidity crisis that affects both operations and financing. The company’s bank accounts have been blocked, supplier debts have accumulated, and its financial position has deteriorated. Formal bankruptcy proceedings have not been initiated.
A separate set of financial pressures comes from a dispute involving Slovenian investment in the plant. Earlier arbitration proceedings resulted in obligations including awards of €67 million and €58.2 million, along with rights linked to future electricity production. A settlement reached in April 2026 set compensation for Slovenian energy company HSE at €188 million.
The April 2026 settlement also preserved HSE’s entitlement to one-third of future electricity output. To meet commitments, RiTE Ugljevik issued about €13 million in new shares in June. Its share capital had previously been reduced from roughly €130 million to €35 million, and trading of its shares on the Banja Luka Stock Exchange was temporarily suspended.
The operational and financial pressures are linked through coal availability and cash constraints. Without sufficient coal, the plant cannot maintain electricity production needed for revenue generation, debt servicing, and obligations tied to future output. At the same time, weak liquidity makes it harder to finance mining operations and equipment required to restore reliable generation.
