# Economic and energy challenges in Bosnia and Herzegovina > Live situation record from CLSTR: https://clstr.news/situations/economic-and-energy-challenges-in-bosnia-and-herzegovina > Updated: 2026-08-20T18:20:00.000Z. Sources: 16. Developments: 2. Bosnia and Herzegovina is experiencing economic strain driven by energy shortages and rising living costs. In the energy sector, declining coal production—notably at the Breza mine—has created a one-million-ton deficit for Elektroprivreda BiH, necessitating expensive electricity imports. The government is attempting to stabilize the system through mining investments and a ‘just transition’ project supported by the World Bank to manage the shift away from mines like Zenica. Simultaneously, the population faces increasing costs for food and essential goods. Global commodity price volatility and local agricultural challenges, such as droughts impacting corn yields, are driving up the price of meat, dairy, and staples. These combined pressures on energy and food security are forcing households to reduce consumption and limit heating use to manage budgets. Recent developments show that food prices continue to climb, with experts warning that global instability and extreme weather could further increase the cost of staples like wheat, meat, and dairy. In the Republika Srpska region, heating costs are rising sharply, with pellet prices reaching up to 680 KM per ton. ## Timeline ### 2026-08-20: Energy sector in Bosnia and Herzegovina faces coal shortages and industrial transition Bosnia and Herzegovina's energy sector faces coal shortages and high import costs, prompting government investments in mining and a World Bank-supported 'just transition' for industrial workers. 2 sources. https://clstr.news/cluster/energy-sector-in-bosnia-and-herzegovina-faces-coal-shortages-and-industrial-transition ### 2026-08-20: Economic pressures rise across Bosnia and Herzegovina and Croatia Rising food, heating, and utility costs are straining household budgets in Bosnia and Herzegovina and Croatia, prompting pension adjustments in Croatia to combat inflation. 15 sources. https://clstr.news/cluster/bosnia-and-herzegovina-faces-rising-food-and-energy-costs --- Cite as: Economic and energy challenges in Bosnia and Herzegovina. CLSTR, https://clstr.news/situations/economic-and-energy-challenges-in-bosnia-and-herzegovina