The European Bank for Reconstruction and Development (EBRD) has approved a loan of up to €46 million for Elektroprenos-Elektroprijenos BiH Banja Luka (TransCo), Bosnia and Herzegovina’s electricity transmission company, to strengthen and modernise the country’s power transmission network.
The investment is aimed at supporting the integration of renewable energy sources, improving grid reliability, and enhancing electricity exchanges with neighbouring countries.The financing will be used to procure and install four variable shunt reactors (VSRs) at strategically important substations across Bosnia and Herzegovina.
These devices are essential for regulating voltage levels within the transmission network, helping to ensure stable and efficient operation of the grid. Their importance is growing as the country increases the share of renewable energy in its electricity mix, creating more dynamic operating conditions for the power system.
The project is expected to significantly improve the flexibility and resilience of Bosnia and Herzegovina’s transmission infrastructure. By enabling the network to handle larger volumes of renewable energy, the upgrades will help facilitate the connection of new wind and solar projects while maintaining system stability.
The investment will also address long-standing technical challenges, including high voltage levels within the network, which have limited the grid’s ability to accommodate additional renewable energy capacity.Another key benefit of the project is its contribution to regional energy integration.
The upgraded transmission system will be better equipped to manage cross-border electricity flows, supporting increased electricity trade with neighbouring countries in the Western Balkans. This will help create a more interconnected and efficient regional electricity market while strengthening the country’s role in regional energy cooperation.
The modernisation effort is also expected to reduce transmission losses across the network. Lower losses mean less wasted electricity and, consequently, lower greenhouse gas emissions, supporting Bosnia and Herzegovina’s broader decarbonisation and clean energy objectives.
The investment forms part of TransCo’s wider capital development programme, which is focused on strengthening energy infrastructure to meet growing demand for renewable energy connections and increasing cross-border electricity exchange.
As renewable energy projects continue to expand across the region, improving transmission capacity has become increasingly important for ensuring reliable electricity supply and supporting long-term energy security.Commenting on the agreement, Francesco Corbo, EBRD Regional Head of Energy for the Western Balkans and Croatia, said that a strong and reliable transmission network is essential for a successful energy transition.
He noted that the project will improve grid stability, support greater deployment of renewable energy, and contribute to deeper integration of regional electricity markets. He also highlighted the EBRD’s commitment to continuing its partnership with TransCo on future infrastructure and interconnection projects.
TransCo General Manager Dr Miro Džakula said the project represents an important step towards strengthening the country’s electricity network at a time of growing demand for renewable energy integration and cross-border power exchanges. According to him, the upgrades will enhance operational stability, reduce energy losses, and contribute to the long-term sustainability and efficiency of Bosnia and Herzegovina’s power system.
Since starting operations in Bosnia and Herzegovina, the EBRD has invested more than €3.5 billion in 268 projects across various sectors, playing a significant role in supporting the country’s economic development and infrastructure modernisation.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
