Coal Sector Woes Threaten Electricity Production in Southeastern Europe
Challenges facing coal mining and thermal power sectors across Southeastern Europe, including wage disputes and supply disruptions, are raising concerns about electricity production. Protests in Romania and coal shortages in Bosnia and Herzegovina highlight the region’s vulnerability as it navigates a transition towards cleaner energy sources.
Romania: Protests Over Austerity Measures at CE Oltenia
Miners at Romania’s state-owned coal mining and power plant complex, CE Oltenia, have been protesting planned austerity measures, including the elimination of meal vouchers and wage cuts. Workers fear these cuts will impact already depleted coal supplies for key thermal power plants like Rovinari and Turceni, which are vital to the country’s energy system.
During a meeting with union representatives, Romanian Prime Minister Ilie Bolojan stated that CE Oltenia could avoid the austerity measures only by increasing efficiency and reducing its reliance on state aid. A memorandum detailing these conditions is expected to be discussed by the government soon.
Romania has renegotiated with the European Commission to extend the closing date for several coal-fired power plants, pushing it back from December 31, 2025. Thirteen CE Oltenia workers are currently on hunger strike in protest of the proposed changes.
Bosnia and Herzegovina: Power Plant Offline and Salary Cuts
In Bosnia and Herzegovina, the Ugljevik thermal power plant is currently offline due to coal shortages. The plant’s operator, RiTE Ugljevik, recently reduced the salaries of all employees.
The government of Republika Srpska recently agreed to transfer a concession for a portion of the Ugljevik coal deposit from Comsar Energy RS, owned by Russian billionaire Rashid Sardarov, to RiTE Ugljevik. This move aims to unlock an estimated 50 million tons of coal reserves, enough to supply the power plant for 25 years. These reserves were originally intended for the planned Ugljevik 3 thermal power plant, a project that the Russian concessionaire failed to complete.
Miners at the Zenica coal mine, slated for closure, held a five-day hunger strike in September over unpaid wages.
Electricity imports into Bosnia and Herzegovina reached a record EUR 321.6 million in 2025, double the amount from the previous year, largely due to production halts caused by coal shortages.
Renewable Energy Investments
Despite the current challenges, investments in renewable energy are underway. OMV Petrom and CE Oltenia have begun construction of 550 MW of photovoltaic (PV) capacity in Romania.
Looking Ahead
The situation underscores the delicate balance between maintaining energy security and transitioning to a sustainable energy future in Southeastern Europe. Continued labor disputes, coupled with dwindling coal supplies, pose a significant risk to electricity production in the region. Investments in renewable energy sources will be crucial to mitigating these risks and ensuring a stable energy supply.