€46 Million EBRD Loan Boosts Electricity Infrastructure and Green Energy Transition

The European Bank for Reconstruction and Development (EBRD) has approved a loan of up to €46 million to strengthen the electricity transmission system in Bosnia and Herzegovina. The funding will support the state-owned transmission company TransCo in modernizing critical grid infrastructure and improving the reliability of electricity supply across the country.

The project will finance the purchase and installation of four variable shunt reactors at major substations. These components are essential for maintaining voltage stability and ensuring that the electricity network can operate efficiently as more renewable energy sources are connected to the grid.

The investment will help Bosnia and Herzegovina integrate greater amounts of renewable energy, improve cross-border electricity exchanges with neighboring countries, and increase overall grid flexibility. It will also reduce transmission losses, lower carbon emissions, and support the country’s long-term decarbonization objectives.

The project forms part of TransCo’s broader infrastructure modernization strategy aimed at meeting growing demand for renewable energy connections and expanding regional electricity market integration in the Western Balkans. By enhancing network performance and stability, the initiative will contribute to a more resilient, sustainable, and interconnected energy system.

Since beginning operations in Bosnia and Herzegovina, the EBRD has invested more than €3.5 billion across 268 projects, supporting economic development, infrastructure modernization, and the country’s transition toward a greener economy.