Electricity transmission system operator Elektroprenos-Elektroprijenos BiH, or TransCo, has secured a EUR 46 million loan from the European Bank for Reconstruction and Development (EBRD) to finance the procurement and installation of four variable shunt reactors at key substations across Bosnia and Herzegovina. The project will improve the reliability and flexibility of the country’s power grid, help integrate more renewables, and enhance cross-border electricity flows, the EBRD said.
Variable shunt reactors (VSRs) 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, the lender said in a press release.
The investment will also help reduce network losses and greenhouse gas emissions, supporting the country’s decarbonization goals, it noted.
The project is part of the company’s broader capital investment program aimed at strengthening energy infrastructure and addressing both the growing number of requests for connecting new renewable energy capacity and the increasing demand for cross-border electricity exchange in the Western Balkans.
The upgrade will help increase the capacity for cross-border electricity flows and foster regional market integration
It will increase the system’s capacity to handle flows to and from neighboring markets, contributing to closer regional integration and a more efficient electricity market, the EBRD explained.
The project will improve system stability, enable greater deployment of renewable energy, and support deeper regional market integration, according to Francesco Corbo, the EBRD’s Regional Head of Energy for the Western Balkans and Croatia.
“We look forward to continuing our cooperation with TransCo on future interconnection projects, benefiting both Bosnia and Herzegovina and the wider Western Balkans region,” he stressed.
Project implementation is expected to begin this year
Following the loan signing, Elektroprenos-Elektroprijenos BiH stated that implementation is expected to begin this year and that the project should be completed in the coming years.
The 250 MVAr variable shunt reactors will be installed at substations TS Banja Luka 6, TS Mostar 4, TS Tuzla 4, and TS Višegrad, the company added.
Elektroprenos-Elektroprijenos BiH is jointly owned by the two entities of Bosnia and Herzegovina. The Federation of BiH holds 58.9% and the Republic of Srpska 41.1%.
