Gacko Thermal Power Plant
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Gacko Thermal Power Plant is an operating power station of at least 300-megawatts (MW) in Gacko, Republika Srpska, Bosnia and Herzegovina with multiple units, some of which are not currently operating.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Gacko Thermal Power Plant | Gacko, Gacko, Republika Srpska, Bosnia and Herzegovina | 43.172137, 18.511555 (exact) |
Unit-level coordinates (WGS 84):
- Unit 1: 43.172137, 18.511555
- Unit 2: 43.172259, 18.512728
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | Start year |
|---|---|---|---|---|---|
| Unit 1 | Operating | coal: lignite, fossil liquids: fuel oil[1] | 300 | supercritical | 1983 |
| Unit 2 | Pre-construction[2] | coal: lignite | 350 | supercritical | – |
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| Unit 1 | Rudnik i Termoelektrana Gacko AD [100%][3] | Elektroprivreda Republike Srpske AD |
| Unit 2 | Gacko Thermal Power Plant, Development and Investment doo [100%][2][4] | Elektroprivreda Republike Srpske AD |
Project-level coal details
- Coal source(s): Gacko coal mine
Background
The 300 MW plant began operating in 1983, and is owned and operated by Elektroprivreda Republike Srpske (ERS). It is a supercritical power station and sources 1.8 million tonnes of lignite coal a year from the nearby Gacko coal mine.[5]
In May 2023, it was reported that ERS was considering co-firing waste (refuse-derived fuel, RDF) at the Gacko Thermal Power Plant. The company was pursuing a preliminary environmental impact assessment for the pilot project, which would burn up to 1,200 tons of waste per day.[6]
As of May 2025, for the first time since their inception, the largest electricity producers the Gacko power station and Ugljevik power station were out of operation simultaneously due to scheduled maintenance.[7] TPP Gacko underwent a scheduled five-year major overhaul from 24 May to 2 August 2025, TPP Ugljevik was offline from 21 April to 5 June, leaving both plants simultaneously out of service for approximately ten days. Together, the two plants accounted for around 65% of electricity generation in Republika Srpska. The overlapping outages contributed to a record electricity import bill for Bosnia and Herzegovina in 2025, with the country spending approximately €321.5 million on electricity imports – double the figure for the previous year.[8]
Operations and Environmental Impacts
In January 2026, reporting on RiTE Gacko stated that the existing Gacko plant had produced more than 1,240 GWh in 2025, exceeding its annual production plan by 1.5%, despite a 68-day capital overhaul and continuing problems with poor coal quality.[9]
Fuel Supply Constraints
In late 2024, it was reported that coal shortages at the Gacko lignite mine disrupted fuel supply to the Gacko thermal power plant, forcing the operator to rely intermittently on fuel oil to maintain electricity generation. The situation was linked to insufficient funding for overburden removal and mine development works, as authorities in Republika Srpska stated they lacked the estimated €357 million required to sustain coal production at the Gacko and Ugljevik power plants. The fuel constraints highlighted growing financial and operational challenges affecting coal-fired generation in the entity.[10]
Environmental Impacts
The Gacko plant emitted almost 10.7 times as much dust as allowed in 2023, or 3,241 tonnes. This represented a slight decrease compared to 2022, when it emitted 3,649 tonnes. Decreases in dust pollution were reported in late 2023, but came too late to show significant improvements in the emissions data for the year.[11] It was reported in October 2023 that the dust problem had been alleviated but further investments would be needed to ensure permanent improvements, including a unit for ‘cleaning’ coal. The decreasing quality of coal is also an increasing issue.[11] Furthermore, Gacko and Kakanj 7 had the highest exceedance for NOX, with 2.4 times as much as allowed.[11]
In a report from June 2025, CEE Bankwatch revealed that Gacko Thermal Power Plant had released more than 11 times the allowable limit of sulfur dioxide in 2024, under the National Emissions Reduction Plans of Bosnia and Herzegovina, Kosovo, North Macedonia, and Serbia. In addition, Gacko was the biggest polluter of dust (particulate matter) in Bosnia and Herzegovina, releasing around 13.7 times above the permitted limit in 2024. Locals in the Nadinići area had protested the pollution in the spring of 2023, leading to some improvement later in the year; however, Gacko’s particulate matter pollution was even higher in 2024.[12][13]
Expansion Plans (Gacko 2)
Early Plans and CEZ Withdrawal
In 2006, the major Czech utility company CEZ reached an agreement with ERS to form a joint venture company, Nove Elektrarne Republike Srpske (NERS), which would upgrade the existing plant, built a second unit at the power station and expand the nearby Gacko coal mine. In return for investing €1.5 billion in the project, CEZ gained a 51% stake in the new joint venture company.[5]
In January 2009, CEZ pulled out of the deal stating that it was because of "repeated breach of the implementation contract by its partners in Bosnia and Hercegovina."[14]
In March 2022, the environmental permit for the mine project was cancelled by the District Court in Banja Luka. A lawsuit had been filed by the Center for the Environment after the mine's Environmental Impact Study was initially approved by the Ministry of Spatial Planning, Construction and Ecology.[15] The power plant expansion is presumably shelved.
The proposed Gacko units were mentioned as one of two possibilities in the "2012 Energy Strategy of Republic of Srpska up to 2030." In this document, the project was described as a 300 MW replacement unit for the current Gacko station. The other possibility was that the lifetime of Gacko 1 would be extended to 2035 rather than 2020.[16]
Arbitration Decision
In 2014, an arbitration panel imposed an obligation on Elektroprivreda RS to purchase from CEZ its equity stake in Nove Elektrane Republike Srpske for 2 million euros, plus contractually defined interest. In addition, CEZ was to receive the same amount of 2 million euros plus late-payment interest as liquidated damages, bringing the total amount that the Czech company will receive to approximately 7.5 million euros.[17]
In February 2015, the Minister of Mining and Energy of Republika Srpska in Bosnia and Herzegovina, Petar Đokić, restated the country's plans to build a new 300 MW thermal power plant in Gacko.[18]
MoU Agreements (2015-2017)
In May 2015, Bosnia's Serb Republic said it planned to sign a memorandum of understanding with China’s Dongfang Electric Corporation (DEC) for the construction of a 350 MW unit at Gacko plant. Construction on the new unit was expected to begin in spring 2015.[19] Dongfang would potentially secure 85% of the credit funds for the construction of the unit, possibly through a Chinese state-owned bank.[20]
In April 2017, the Bosnia Minister of Industry, Energy and Mining signed a MoU agreement for construction of Gacko 2 with Chinese companies China Investment & Development Company and China Machinery Engineering Corporation.[21]
In December 2017, state-owned utility Elektroprivreda Republike Srpske signed a MoU for the plant with China Machinery and Engineering Corporation (CMEC) and Emerging Markets Power Fund.[22]
Revival and Current Status (2022-present)
In August 2022, shelved expansion plans appeared to be revived. Due to energy security concerns in light of the war in Ukraine, reliance on coal was once again on the rise in the western Balkans.[23] According to the Government of the Republic of Srpska, private Czech company Witkowitz was interested in building a 350 MW Unit 2 at the Gacko plant. The investment was valued at EUR 521 million.[24] A Memorandum of Understanding was to be signed "soon", but there was no apparent news on the memorandum later on.
A report by the Institute for Energy Economics and Financial Analysis from October 2022 showcased the poor economics of the project, adverse impact on the environment and public health and bad timing.[25]
However in October 2023, reporting indicated that Gacko II was still in a planning phase. The unit was described as a 350 MW supercritical unit designed to provide base load grid capacity.[26] A new company was founded in mid-2023 - 'Gacko Thermal Power Plant, Development and Investments' for obtaining various types of permits, and Elektroprivrede Republike Srpske said that the main goal is to look at the possibilities of further development of this facility.[27] According to media report from late 2023, ERS has not provided financial resources for now, but options are open for a new investor from Europe or the world interested in such an energy project.[27]
A request for a preliminary environmental impact assessment was submitted to the Ministry of Spatial Planning, Construction and Ecology in October 2023.[28][29] In late 2023, three controversial tenders were launched for a total value of 3.5 billion KM for developing documentation and obtaining an environmental permit and a construction permit.[30][27] In May 2024, the contract for developing the technical documentation was awarded to Institute for Civil Engineering IG after their appeal, even though it was the most expensive contract.[31] A media source from July 2024 implied that since the formation of the new company, the public procurement procedures and the contracts awarded were dubious, alleging to pre-arranged deals.[32] As of December 2024, the environmental impact assessment has not yet been completed.[33]
In May 2025, media reported that the project was going ahead.[34] The Ministry of Spatial Planning, Construction and Ecology of the Republika Srpska has received (presumably an updated) draft Environmental Impact Study for Gacko 2. The public hearing of the draft environmental Impact assessment will held on 3 June 2025.[35] The document was published in the Ministry's website. The main conclusion of the public hearing was that the documentation for the construction of the Gacko 2 Thermal Power Plant was almost completely completed, although there was no investor found. Nearly 3 million KM has been invested in the preparation of documentation, including the preliminary design, feasibility and environmental impact studies.[36]
At a June 2025 public hearing on the draft environmental impact study, the project company said that the documentation for Gacko II was almost complete, but that no investor had yet been secured. The study, prepared by Radis from Banja Luka, considered two main options: building a new 350 MW unit with an expected operating life of 25 years, potentially extendable to 40 years, or revitalising the existing unit so that it could operate until 2035–2036.[37]
In November 2025, the Energy Community Secretariat reported that Bosnia and Herzegovina had granted development consent for the 350 MW Gacko II thermal power plant during the reporting period.[38]
As of October 2025, CEE Bankwatch Network reported that the environmental impact assessment procedure for Gacko II was still ongoing, while financing for the project remained highly unlikely.[39]
Regulatory Context
Draft NECP: No New Coal
In April 2023, Bosnia and Herzegovina announced a draft national energy plan until 2030 that foresees no new coal-fired plants.[40] The Energy Community Secretariat published its recommendations on the draft National Energy and Climate Plan (NECP) of Bosnia and Herzegovina in December 2023.[41] The final NECP has to be submitted by the end of June 2024.[42]
The Government of Bosnia and Herzegovina conducted additional public consultations and developed a final draft in July 2024.[43][44] No new coal was envisaged, but there was no coal phase out plan provided either. The latest publicly available draft still contained missing elements such as an analytical basis, formulation of tangible policies and measures with an assessment of the impacts and the investments needed to achieve the corresponding targets and objectives. The Government still needed to conduct Strategic Environmental Assessment and incorporate the findings in the final document.[43] The final draft NECP was submitted to the Energy Community Secretariat in 2024. The plan explicitly described coal as a transition fuel, stating that its continued use was necessary to ensure security of supply while new renewable energy capacity was being developed.[45]
As of March 2025, BiH has not yet adopted its final NECP.[46] Similarly, as of December 2025, the final NECP has not been adopted yet.[47]
As of December 2025, Bosnia and Herzegovina remained one of only two Energy Community Contracting Parties, alongside Kosovo, that had not yet formally adopted a final NECP.[48]
As of May 2026 there were no new updates.
CBAM and Energy Exports
The Carbon Border Adjustment Mechanism (CBAM), which entered into force on 1 January 2026, applies to Bosnia and Herzegovina without exceptions, including for electricity exports to the EU.[49]
A March 2026 civil society position paper stated that Bosnia and Herzegovina had exported an average of around 21% of the electricity it produced to the EU between 2014 and 2023, and that exports to Croatia fell in January and February 2026 compared to previous years after CBAM entered its definitive phase. The same paper stated that Bosnia and Herzegovina had taken no significant steps towards gaining an electricity-sector exemption from CBAM since October 2025.[50]
Financing
Source of financing: MoU signed for the plant with China Machinery and Engineering Corporation (CMEC) and Emerging Markets Power Fund (proposed in 2017).[22] No financing agreement was concluded.
A media report from July 2024 indicated that Chinese companies were not proceeding with the project.[51] No further information on the involvement of CMEC or Emerging Markets Power Fund had been reported since the 2017 MoU.
In 2018, a Bankwatch economist found that although the official feasibility study for Gacko II claimed it would generate profit of around EUR 23 million per year, more realistic input data on price and demand would lead to a loss of minimum EUR 1.15 million per year.[22]
In March 2023, the Institute for Energy Economics and Financial Analysis concluded that financing for the project was uncertain given its economic and environmental profile, noting that it was difficult to see who would finance a new coal project in Bosnia and Herzegovina under current conditions, with China and Russia likely to be excluded from the list of potential backers.[52][25]
As of June 2025, documentation for the project was almost complete, but no investor had been identified.[53]
Articles and Resources
References
- ↑ https://balkangreenenergynews.com/republic-of-srpska-doesnt-have-eur-350-million-to-secure-production-in-coal-power-plants/.
{{cite web}}: Missing or empty|title=(help) - ↑ 2.0 2.1 "Обавјештење о пријему захтјева за претходну процјену утицаја на животну средину за пројекат изградње термоелектране „ТЕ Гацко II"". Влада Републике Српске. 2023-10-03. Archived from the original on 2024-01-25.
- ↑ https://web.archive.org/web/20240207000711/https://www.ritegacko.com/termoelektrana/. Archived from the original on 2024-02-07.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240207000716/https://www.capital.ba/ers-napravila-novi-korak-ka-ozivljavanju-te-gacko-2/. Archived from the original on 2024-02-07.
{{cite web}}: Missing or empty|title=(help) - ↑ 5.0 5.1 "European Energy Community," Euracoal website, accessed October 2012
- ↑ "Elektroprivreda Republike Srpske plans to burn waste in its Gacko coal plant," May 17, 2023
- ↑ "Bosnia and Herzegovina: Simultaneous maintenance shutdowns". serbia-energy.eu/. May 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Bosnia and Herzegovina sets record electricity import bill in 2025 amid coal shortages and plant outages". serbia-energy.eu. February 2026.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Premašen plan proizvodnje: U RiTE Gacko prošle godine proizvedeno više od 1.240 gigavat-časova električne energije". Blic. January 2026. Retrieved May 17, 2026.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Republic of Srpska doesn't have EUR 350 million to secure production in coal power plants". Balkan Green Energy News. Dec 24, 2024. Retrieved Dec 15, 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ 11.0 11.1 11.2 "Comply or Close - 2024 update" (PDF). bankwatch.org. September 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ “Western Balkan governments still complicit in deadly coal pollution – new report,” CEE Bankwatch, June 17, 2025
- ↑ “Comply or Close: Seven years of deadly legal breaches by Western Balkan coal plants,” CEE Bankwatch, June 2025
- ↑ CEZ, "ČEZ applied its safety option in the Gacko project," Media Release, January 28, 2009
- ↑ "Sud odlučio: Poništena Studija uticaja na životnu sredinu za površinski kop Gacko – Centralno polje!," Centar za zivotnu sredinu, March 17, 2022
- ↑ "2012 Energy Strategy of Republic of Srpska up to 2030," Banja Luka, February 2012
- ↑ "UPDATE 1 - CEZ wins arbitration case over Gacko TPP project in Bosnia," Power Market, September 2, 2014
- ↑ "Republika Srpska to Build 300 MW TPP in Gacko," Energetika, March 2, 2015
- ↑ "China's Dongfang files letter of intent for 350 MW TPP project in Bosnia," Power Market, May 28, 2015
- ↑ "Chinese partner may secure 85% of credit funding for Gacko TPP project in Bosnia," SeeNews, June 4, 2015
- ↑ "Official: Chinese to build Thermal Power Plant Gacko 2," Sarajevo Times, April 3, 2017
- ↑ 22.0 22.1 22.2 "Planned Gacko II lignite plant in Bosnia-Herzegovina likely to make losses, shows new analysis," Bankwatch, April 12, 2018
- ↑ "Energy crisis triggers new coal projects in Republic of Srpska, Serbia," Balkan Green Energy News, August 22, 2022
- ↑ "Bosnia and Herzegovina, Witkowitz is considering investing 520 million euros in the construction of 350 MW coal-fired unit at TPP Gacko," Serbia Energy, August 19, 2022
- ↑ 25.0 25.1 Institute for Energy Economics and Financial Analysis (October 2022). "The vulnerability of lignite in a net-zero future. The case of Gacko II in BiH" (PDF).
{{cite web}}: CS1 maint: url-status (link) - ↑ "Ponovo aktualna izgradnja TE Gacko II," Poslovni dnevnik, October 6, 2023
- ↑ 27.0 27.1 27.2 "U SUPROTNOSTI SA PRAKSOM EVROPSKE UNIJE: Tri miliona KM za dozvole potencijalnog novog bloka TE Gacko". www.pratimotendere.ba. December 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Обавјештење о пријему захтјева за претходну процјену утицаја на животну средину за пројекат изградње термоелектране „ТЕ Гацко II“," Влада Републике Српске, October 3, 2023
- ↑ "ERS napravila novi korak ka oživljavanju TE Gacko 2". https://www.capital.ba/. 28 November 2023.
{{cite web}}: External link in|website= - ↑ "Petrović i Milojević prebacuju odgovornost za „namještanje" tendera". www.capital.ba. January 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ "TE "Gacko 2" dodijelila ugovor najskupljem ponuđaču". www.rtvbn.com/. May 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Chinese (Not) Entering Gacko". direkt-portal.com. July 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gacko II, Bosnia and Herzegovina". bankwatch.org. December 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Ovako će izgledati novi energetski kapacitet u RS - TE Gacko II prostiraće se na 67 ha sa godišnjom proizvodnjom od 2.414 GWh". www.ekapija.com. May 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Обавјештење о јавном увиду и јавној расправи у Нацрт студије утицаја на животну средину пројекта ТЕ Гацко II". vladars.rs/. May 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gacko 2 – dokumentacija se sprema, investitora nema". /direkt-portal.com. June 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Kovačević, Milanka (June 3, 2025). "Gacko 2 – dokumentacija se sprema, investitora nema". Direkt Portal. Retrieved May 17, 2026.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Annual Implementation Report: Bosnia and Herzegovina" (PDF). Energy Community Secretariat. November 2025. Retrieved May 17, 2026.
{{cite web}}: CS1 maint: url-status (link) - ↑ Ciuta, Ioana (October 2025). "A perfect storm: The Western Balkans power sector in the time of CBAM" (PDF). CEE Bankwatch Network. Retrieved May 17, 2026.
{{cite web}}: CS1 maint: url-status (link) - ↑ "BiH's NECP: coal power plants to be shut, 2 GW of renewables installed". balkangreenenergynews.com. April 28, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Secretariat publishes its Recommendations on the draft National Energy and Climate Plan of Bosnia and Herzegovina". www.energy-community.org. December 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Secretariat, Recommendation RE NECP 02/2023 on the Draft National Energy and Climate Plan of Bosnia and Herzegovina" (PDF). www.energy-community.org. December 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 43.0 43.1 "NECPs progress update in the Western Balkans: Failure to launch". caneurope.org. December 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ "INTEGRIRANI ENERGETSKI I KLIMATSKI PLAN BOSNE I HERCEGOVINE ZA PERIOD DO 2030. GODINE Verzija 8.6" (PDF). kfbih.com. July 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Energy Community". energy.ec.europa.eu.
{{cite web}}: CS1 maint: url-status (link) - ↑ "The southern gas interconnection from Croatia to Bosnia and Herzegovina" (PDF). bankwatch.org/. March 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Country profile. Europe's environment 2025. Bosnia and Herzegovina". https://www.eea.europa.eu//. September 28, 2025. Retrieved Dec 16, 2025.
{{cite web}}: External link in|website= - ↑ "Bosnia and Herzegovina – Europe's environment 2025". eea.europa.eu. 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Dangerous lignite: Bosnia and Herzegovina has problems with its energy transition". euronews.com. April 3, 2026.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Electricity market integration needs environmental compliance" (PDF). CEE Bankwatch Network. March 2026. Retrieved May 17, 2026.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Chinese (Not) Entering Gacko". direkt-portal.com. July 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Proposed Gacko II lignite-fired power plant is a non-starter". ieefa.org. March 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gacko 2 – dokumentacija se sprema, investitora nema". direkt-portal.com. June 2025.
{{cite web}}: CS1 maint: url-status (link)
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
