Despite a year marked by serious operational challenges, the electricity sector of the Republic of Srpska (RS) maintained its investment momentum throughout 2025. Exceptionally poor hydrological conditions, combined with thermal power plants struggling with inconsistent coal quality and supply disruptions, resulted in reduced overall electricity generation. Nevertheless, electricity supply to consumers remained secure, and prices stayed among the lowest in the region.
A long-awaited milestone was finally reached with the breakthrough of the main tunnel at HPP Dabar, a flagship project within the Upper Horizons hydropower system. First conceived in the mid-20th century, the project endured decades of delays caused by political disagreements, administrative obstacles and legal disputes. After more than seventy years, the 12-kilometer tunnel was completed using domestic expertise, marking a historic step forward. The plant is being developed on a turnkey basis in partnership with China’s Gezhouba Group, with initial electricity production expected in late 2027 or early 2028.
Once fully operational, the new hydropower facilities are projected to contribute over 500 GWh annually, effectively offsetting the generation shortfall recorded during this unusually dry year. Updated production forecasts indicate that hydropower plants on the Trebišnjica River will exceed expectations, those on the Vrbas are operating close to plan, while output from the Drina facilities will be slightly below target.
In the thermal segment, TPP Gacko emerged as the most reliable producer, despite facing poor coal quality and undergoing a 68-day overhaul for major maintenance. The plant surpassed its annual generation plan and delivered nearly one third of total domestic electricity consumption.
Any remaining deficits were compensated through electricity imports, ensuring uninterrupted supply for households and industry. As a result, the RS power system remained stable throughout the year, avoiding restrictions despite some of the most unfavorable operating conditions in recent history.