Bosnia and Herzegovina’s state-owned utility EPBiH has adopted its business strategy for the 2026–2028 period, setting out plans to preserve its position as the country’s leading electricity supplier while ensuring positive financial performance. Over the three-year horizon, the company expects to produce a total of 16,175.5 GWh of electricity, a target that will depend on secure coal procurement, consistent fuel quality and reliable availability of production assets.
Capital investments during the period are projected at around €885 million, with most of the financing to come from loans, while approximately €275 million will be sourced from the company’s own operating cash flow. A portion of these funds will be directed toward continued investment in coal mines within the EPBiH group, supporting a stable fuel supply for thermal power plants as mine restructuring continues.
A core pillar of the strategy is a stronger shift toward renewable energy, especially solar power. EPBiH plans to build numerous solar plants on reclaimed mining land and other company-owned sites, along with rooftop installations on its own buildings and customer premises. The program also foresees funds for acquiring operating renewable projects, investing in developments already underway, and purchasing or leasing land for future solar capacity.
On the conventional side, the strategy includes major upgrades such as flue-gas desulphurization and denitrification units at the Tuzla and Kakanj thermal power plants, reconstruction of Unit 7 at TPP Kakanj, revitalization of Unit 4 at TPP Tuzla, and rehabilitation works at the Salakovac hydropower plant.
The plan also anticipates the gradual introduction of carbon-related charges for emissions from coal-fired power plants in Bosnia and Herzegovina. EPBiH and the state aim to ensure these fees are phased in carefully and kept as low as possible, while demonstrating readiness to reduce CO₂ emissions in line with global trends, as will be further elaborated in the country’s National Energy and Climate Plan.
Institutional restructuring is another important element. In line with the Federation of Bosnia and Herzegovina’s electricity law that entered into force in August 2023, EPBiH intends to establish a separate distribution system operator as an independent legal entity fully owned by the company, in order to comply with unbundling requirements.
For 2026, EPBiH forecasts electricity production of 5,311.8 GWh, total revenue of around €680 million, and a very modest pre-tax profit of approximately €110,000.