EBRD provides €46 million to strengthen Bosnia and Herzegovina’s electricity transmission system

• €46 million loan to TransCo will modernise electricity transmission network
• Investment will support grid stability and integration of renewable energy
• Project will also reduce network losses and CO₂ emissions

The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to €46 million to Elektroprenos-Elektroprijenos BiH Banja Luka (TransCo) to strengthen Bosnia and Herzegovina’s electricity transmission system and support the country’s transition to green energy.

The financing will fund the purchase of four variable shunt reactors (VSRs) and their installation at key substations across the country. These are essential components of the transmission network, ensuring stable voltage levels and enabling the grid to operate reliably under increasingly dynamic conditions driven by larger shares of renewable energy.

This project will play a critical role in modernising the transmission network, allowing Bosnia and Herzegovina to improve the reliability and flexibility of its grid, integrate more renewable energy sources and enhance cross-border electricity flows to/from neighbouring countries. By reducing network losses, the investment is also expected to contribute to lower greenhouse gas emissions, supporting the country’s decarbonisation goals. The upgrading of infrastructure will help to address longstanding technical challenges in the transmission system, including high voltage levels, while enabling the grid to accommodate new renewable energy capacity that would otherwise not be possible.

The project forms part of TransCo’s broader capital investment programme, which aims to strengthen energy infrastructure and address both the growing number of requests for the connection of new renewable energy capacity and the increasing demand for cross-border electricity exchange in the Western Balkans. It will also increase the system’s capacity to handle flows to/from neighbouring markets, contributing to closer regional integration and a more efficient electricity market.

Francesco Corbo, the EBRD’s Regional Head of Energy for the Western Balkans and Croatia, said: “We are delighted to agree this strategic investment in Bosnia and Herzegovina’s transmission network. A strong transmission grid lays the foundations for a successful energy transition. This project will improve system stability, enable greater deployment of renewable energy, and support deeper regional market integration. We look forward to continuing our cooperation with TransCo on future interconnection projects, benefiting both Bosnia and Herzegovina and the wider Western Balkans region.”

Dr Miro Džakula, TransCo’s General Manager, said: “Strengthening our transmission network is essential in order to meet the growing demand for renewable energy integration and cross-border electricity exchange. This project will improve operational stability, reduce losses and support the long-term sustainability of Bosnia and Herzegovina’s power system. We are pleased to be partnering with the EBRD on this important step towards a more resilient and efficient energy future.”

Since the EBRD began operating in Bosnia and Herzegovina, it has invested more than €3.5 billion in 268 projects across the country.