en.Wedoany.com Reported - The European Bank for Reconstruction and Development (EBRD) has approved a loan of up to €46 million for Bosnia and Herzegovina's power transmission company, Elektroprenos-Elektroprijenos BiH Banja Luka (TransCo), to drive the modernization of the country's electricity transmission network.
The funds will be used to procure and install four variable shunt reactors (VSRs) at key substations across Bosnia and Herzegovina, aiming to enhance grid reliability, support renewable energy integration, and increase electricity exchange with neighboring countries. VSR equipment plays a critical role in regulating voltage levels in the transmission network, helping to ensure stable and efficient grid operation. As the share of renewable energy in the country's power mix continues to rise, leading to increasingly dynamic operating conditions for the power system, such equipment becomes ever more important.
The project is expected to significantly enhance the flexibility and resilience of Bosnia's transmission infrastructure. By enabling the network to accommodate larger volumes of renewable energy, this upgrade will help connect new wind and solar projects while maintaining system stability. The investment will also address long-standing technical challenges, such as excessively high voltage levels within the network, which have previously limited the grid's capacity to absorb more renewable energy. Furthermore, the project will promote regional energy integration, as the upgraded transmission system will better manage cross-border power flows, supporting increased electricity trade with neighboring Western Balkan countries. This will contribute to building a more interconnected and efficient regional electricity market and strengthen Bosnia's role in regional energy cooperation.
The modernization is expected to reduce transmission losses across the entire network. Lower losses mean less wasted electricity, thereby reducing greenhouse gas emissions and supporting Bosnia's broader decarbonization and clean energy goals. The investment is part of TransCo's wider capital development plan, which focuses on strengthening energy infrastructure to meet growing demand for renewable energy connections and cross-border electricity exchange. As renewable energy projects continue to expand in the region, increasing transmission capacity is becoming increasingly important for ensuring reliable power supply and long-term energy security.
Francesco Corbo, EBRD Regional Head of Energy for the Western Balkans and Croatia, stated that a robust 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 promote deeper integration of the regional electricity market, while emphasizing the EBRD's commitment to continuing its partnership with TransCo on future infrastructure and interconnection projects. Dr. Miro Džakula, General Manager of TransCo, stated that the project is an important step in strengthening the country's power grid, and that the upgrade will improve operational stability, reduce energy losses, and contribute to the long-term sustainability and efficiency of Bosnia's power system. Since beginning operations in Bosnia and Herzegovina, the EBRD has invested over €3.5 billion in 268 projects across various sectors.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
