The Ugljevik thermal power plant has been out of operation after exhausting suitable coal supplies, leaving Republika Srpska without one of its largest domestic electricity sources. The shutdown is linked to operational risks within the region’s vertically integrated coal-and-power system.
According to plant information, the unit was taken offline roughly two weeks ago shortly after completing an emergency overhaul lasting approximately 60 days. Management said the facility has not returned to sustained production. The company attributed the lack of stabilization to the mining operation’s inability to deliver sufficient coal of the required quality.
Restart timing tied to coal stocks and generation economics
No firm restart date has been announced by management. Existing coal inventories are reported to support only 10 to 15 days of generation, which management said makes an immediate restart commercially unattractive without a more reliable fuel supply. Starting and running a large thermal unit involves significant costs, and another short operating cycle followed by a forced shutdown would further weaken the plant’s financial position.
The decision on when to resume operations is described as dependent on both technical readiness and wholesale electricity prices. Management intends to coordinate restart timing with ERS, aiming for a period when the value of generated electricity can justify operating costs and risks while coal stocks remain limited.
Ugljevik East 2 mine delays affect long-term fuel supply
The main constraint is the delayed development of the Ugljevik East 2 surface mine, expected to be the plant’s principal long-term source of coal. Acting director Žarko Novaković identified the start of extraction at East 2 as an immediate priority, but the mine has not yet reached stable output needed for continuous power generation.
The Republika Srpska government previously awarded a €120 million concession connected with coal production at East 2 to Russian businessman Rashid Serdarov. The concession was presented as a solution to Ugljevik’s fuel-security problems, but expected coal volumes have not materialised. As a result, the plant remains reliant on depleted or increasingly difficult mining areas.
Overburden removal and mining capacity constraints
Union representatives estimated that about 20 million cubic metres of overburden must be removed before reaching the main coal seam. They said existing equipment and staffing levels are insufficient for work at that scale. Mining activity has reportedly focused on removing soil and rock rather than producing enough usable coal for the generating unit.
Financial exposure from lost generation and replacement power needs
The prolonged outage creates multiple layers of financial exposure for Republika Srpska’s power utility ERS. ERS is expected to replace lost Ugljevik generation using other domestic assets or electricity imports, potentially at higher market prices during summer demand peaks. The outage also removes export volumes that would otherwise support ERS cash flow.
The situation is described as extending beyond a temporary maintenance issue, reflecting declining reliability across a system where the power plant, mine output, environmental obligations and electricity-market exposure must operate together. Without accelerated overburden removal, new equipment and a credible mine-development schedule, management said the plant is likely to remain vulnerable to repeated outages even after the current shutdown ends.
