Energetics is the most important sector for the development of the Republic of Srpska. In addition to the existing hydro and thermal power plants and mini power plants, there is a plan to intensify the construction of wind and solar power plants, that would significantly increase the utilization of energy potential of the Republic of Srpska.
The Republic of Srpska is currently using around 30% of its energy potential, and still it is the largest exporter of electricity among countries in the Western Balkans region. The existing facilities produce around 7.000 GWh per year, mostly in thermal power plants. The hydropower potential of rivers and watercourses in the Republic of Srpska is around 10.000 GWh per year, of which around 30% is currently being used.
According to the RS Energy Strategy, until the year 2035, the estimated usable wind energy potential is around 640 MW, or around 1.200 GWh per year.
Therefore, the Republic of Srpska has a significant potential for the production of electricity from renewable sources.
The Republic of Srpska’s energy facilities have a total installed capacity of 1.744 MW. Most of the energy is produced in thermal power plants, followed by hydroelectric power plants and small power plants.
The area of the Republic of Srpska is extremely rich in surface and underground hydrological network. Hydropower potentials are high and current utilization is around 30%. Particularly significant is the river Drina, which has the most developed hydrological system and enormous hydroelectric potential, and so far, nine hydropower plants have been built on the river basin.
The Republic of Srpska has a great potential for the production of energy from renewable sources. Currently, there are 75 renewable energy producers in the RS and their share in total electricity production is around 4%.
Due to its geographical location and significant investment potential, the Republic of Srpska is attracting more and more foreign investors. Located in the heart of the Western Balkans, rich in forests, mountains and rivers, it is a strategically significant investment location in a number of areas, with the energy sector being the most dominant.
The Republic of Srpska Government has defined the energy sector as one of the strategic sectors for sustainable development. Currently, the Republic of Srpska produces around 7.000 GWh in the existing facilities annually, of which around 70% is being produced in thermal power plants. It takes around 3.500 GWh per year to settle domestic consumption and the rest of the produced energy is being exported.
The current utilization of total electricity production potential in the Republic of Srpska is around 30%, which indicates that investment opportunities for a development of this sector are great. The total installed capacity of generating units is 1.744 MW. Of these, 900 MW is within the thermal power plants, 756 MW in hydro power plants and 88.3 MW in small power plants. In 2016, a new thermal power plant (TPP) Stanari was built and put into operation with the capacity of 300 MW.
The Republic of Srpska is one of the largest exporters of electricity in the region, with public companies and private power plants generating the highest revenue from the sale of electricity on the free market. Electricity transmission capacities and interconnections with neighboring countries allow for the reception and transfer of much higher power than the current level, while transmission losses are below the European average.
Due to its natural characteristics, the Republic of Srpska is ranked as the area rich in hydropower potential. The hydropower potential of rivers and watercourses in the Republic of Srpska is around 10.000 GWh per year, of which almost 70% is currently unused. The hydropower potential of installed capacity exceeding 10 MW is utilized by cca 36%, and installed capacity of less than 10 MW is utilized by cca 6.5%.
From the hydrological aspect, the area of the Republic of Srpska has a rich surface and underground hydrological network. The backbone of the Black Sea basin is the Sava River, which is low-lying, and is affected by all major river flows – Una River with river Sana, and rivers Vrbas, Ukrina, Bosna and Drina. All of them have a composite character of river valleys with large scale falls, and have significant hydropower potential. Particularly important in this respect is the Drina River, which has the most developed hydrological system and a huge hydroelectric potential, which is only partially valorized. The Drina River basin represents the most significant untapped hydro potential location in the Balkans.
So far, nine hydropower plants (HPP Uvac, HPP Kokin Brod, HPP Bistrica, HPP Potpec, HPP Piva, HPP Visegrad, HPP Bajina Basta, RHP Bajina Basta and HPP Zvornik) have been constructed on the Drina River basin, and they are owned by the Republic of Serbia and the Republic of Srpska. These nine hydropower plants have a total installed capacity of 1.932 MW and an average annual production of 6.350 GWh.
Further construction in the Drina River basin can significantly increase electricity production. Increasing production can be achieved both by building new plants and by increasing the capacity of existing plants. It is estimated that with the construction of new plants, annual production of over 7.500 GWh can be achieved. Building reservoirs on the Drina River basin would not only enable the use of very attractive and, in economic terms, very valuable hydropower potential, but it would also create preconditions for development of tourism in the region.
Also, other river flows have great energy and water management significance. The hydrographic river network of the Republic of Srpska is complemented by the largest and the most significant river of eastern Herzegovina – Trebišnjica, whose hydro-energy potential has only been partially utilized. Like almost all of the underground hydrographic network, it belongs to the Adriatic basin. Eight hydropower facilities are planned to be constructed in the Trebišnjica River basin area, and four hydropower plants have been built to date – HPP Dubrovnik Phase I, HPP Trebinje 1, Trebinje HPP 2 and reversible HPP Capljina.
In terms of wind energy, theoretically usable potential, according to the 2035 RS Energy Strategy, is around 640 MW or cca 1.200 GWh per year. This potential is still not being used for electricity production, although two wind power plants (wind farms) are in the preparatory phase of the construction, with the installed capacity of cca 100 MW or around 200 GWh per year. The Government of the Republic of Srpska has granted a concession for the construction of another wind farm with an installed capacity of around 50 MW.
The Republic of Srpska, especially its southern part, has been recognized as an excellent area for the construction of wind farms. According to the research conducted by the local and international experts, the Republic of Srpska’s wind potential has a 30% higher utility coefficient than the EU average.
So far, a concession has been granted for the construction of two wind farms with a total installed capacity of 97.5 MW. The Grebak wind farm, near the municipality of Nevesinje, will be connected to the network in 2021. Also, it is expected that a concession will soon be granted to the „Elektroprivreda Republike Srpske“ for the Trusina wind farm, with a capacity of 50 MW.
Hydro Power Plant (HPP) Dabar – an estimated project value is close to a half a billion BAM. HPP Dabar will have installed capacity of 160 megawatts and it is the most important energy facility in the “Upper Horizons” system, which is one of the largest investment projects in the Western Balkans region. The project envisages the transfer of water from the Gatac and Nevesinje fields through the Dabar and Fatnic fields into the reservoir of Bileća Lake. Apart from the construction of the HPP Dabar, as a part of this project, there is a plan for the construction of both the HPP Nevesinje and HPP Bileća. The investor will be a Chinese company.
Wind Farm Hrgud – will be the first facility of this type in the Republic of Srpska to produce energy from renewable sources. The installed capacity will be 48 MW and the planned annual production 126 GWh. The total value of the project, which includes the installation of 16 wind turbines, each with a capacity of three megawatts, amounts to EUR 64,285,000. Through a loan from the German Bank for Reconstruction and Development from Frankfurt am Main it will be provided EUR 60,000,000, and EUR 4,285,000 will be provided by the Mixed Holding “Elektroprivreda Republike Srpske” – the parent company Trebinje.
HPP Buk Bijela – HPP Buk Bijela is one of the planned hydropower plants in the system of hydroelectric power plants in the upper Drina area. The Drina River is the right and the largest tributary of the Sava River and belongs to the Black Sea basin. It is created by the merging of the rivers Tara and Piva, near Scepan Polje. The total length of the basin is around 500 km and the average width is around 100 km. In the upper part of the basin, annual rainfall is estimated to 3,000 mm, and the average throughout the basin is 1,100 mm.
The estimated installed capacity is 93.52 MW and the estimated annual production is 332.3 GWh. The value of the investment is 382,407,793 BAM.
HPP Foča – Compensation pool between HPP Buk Bijela and the city of Foča, which allows the accumulation of water with a volume of 7.6×106 m3. According to the adopted project, the dam of HPP Foča is a concrete gravity dam with construction height of 40 m, with a classic river type operator station integrated into the body of the dam, with which it forms a structural whole.
Estimated installed capacity – 44.15 MW, and estimated annual production – 175.8 GWh. The value of the investment is EUR 119.1 million.
HPP Paunci – estimated installed capacity – 43.21 MW, and estimated annual production – 166.9 GWh.
There is a plan for all these hydropower plants to be built in the next six years.
”Elektroprivreda Republike Srpske” is the majority owner in the concession company “HPP Bistrica” d.o.o. Foca, which is the holder of a concession for the construction and usage of three hydropower plants on the Bistrica River and one on the Janjina River:
Total estimated annual production: 155.23 GWh.
Investment value: 93.000.000 BAM
– SHPP Janjina – 1 on the Janjina River, with an installed capacity of 4.1 MW and an average annual production of 14.8 GWh.
The estimated value of the investment is 13,000,000 BAM.
The Republic of Srpska Spatial Plan defines the possibility of building eight hydropower plants on the river Bosna, in the area from Doboj to Vukosavlje. The construction of these hydroelectric power plants would be significant because it could rise the level of protection against floods and bring larger areas of agricultural land to use. It is planned to build a defense embankment and a dam with a seven-meter-high machine building in its body. A concession for the construction of six hydropower plants was granted to Norwegian companies, and in November 2017 the Government of the Republic of Srpska terminated the contracts for failure in implementation.
The total estimated value of hydropower plants on the River Bosnia is approximately 300 million euros.
Regarding the legal procedure for investing in the energy sector, several preliminary steps need to be carried out before any licensing activities can be undertaken. First of all, it is necessary to determine which is the competent authority for the construction of the electric power plant, whether it is necessary to obtain a concession for the construction, as well as to check the spatial planning documentation with the authority in charge of spatial planning and construction.
The Law on Renewable Energy Sources and Energy Cogeneration of the Republic of Srpska defines the rights for incentives in the field of energy production from renewable sources.
There are currently a total of 75 RES producers in the Republic of Srpska, private companies, that are eligible for the incentives, including 28 small hydropower plants, 45 solar power plants, one biogas power plant and one solid biomass plant. Their share in total electricity production in the RS at the end of 2018 was 3.9 percent, and they received around 16.1 million BAM through incentives.
Institutional support, finantial incentives, subventions, tax exemptions - all aim to build better business environment for you.
The Republic of Srpska is rich in natural and other significant resources that represent great potential for each investor. No matter the industry.
Position is important. Good connection with the rest of Europe makes it much easier to build a business in the Republic of Srpska.
Investors in the Republic of Srpska have an equal position as the residents. Aside from that, they have many more valuable benefits.
Tourism is a growing industry. The Republic of Srpska is an attractive location for tourists and yearly-growing numbers confirm this statement.
The workforce is a significant factor of success and one of the biggest advantages of growing a business in the Republic of Srpska.