Usage of electrical energy to light up the city of Banja Luka started as early as in 1898 when the Hydro Power Plant Delibašino selo was put into operation with two turbines of 300 horsepower each, while 25 years later (1923) a thermal power plant of 1100 horsepower was constructed in Lauš.

In that period, city electrical network started to be built and gradually expanded until the Second World War. There is no accurate data as regards the consumption of electrical energy prior to the war, however, on the basis of peak load and work regime of sources, it was estimated that in 1939 the total consumption was approximately 5,000 MWh. After the war, the consumption of electrical energy decreased and in 1947 it was approximately 3,800 MWh.

Currently, the electricity to the city is supplied by a dependant state-owned company “Elektrokrajina” p.o. Banja Luka which was established under the Decision by JMDP /Public Holding State-owned Company/ “Elektroprivreda” of the Republic of Srpska on 17 August 1992. Banja Luka is the biggest consumer of electrical energy in the Republic of Srpska participating with approximately 20% of total consumption.

As for production capacities in electric power industry the city only has “Energana” on the Incel factory compound with the capacity of 350MV of thermal and 32MW of electrical energy which is currently not in the function of generating electrical energy

Hydropower potential of the Vrbas River has not been sufficiently utilised, whereas certain activities concerning the construction of two hydro power plants (HE /hydroelectric power station/ Krupa na Vrbasu and HE “Banja Luka-Niska”) have been going on for quite some time.

Electrical energy on voltage above 110kV in the city is transmitted by “Elektroprenos BiH” company whose seat is in Banja Luka. In carrying out its activities, the company also cooperates with electric energy distribution company “Elektrokrajina” a.d. /Joint Stock Company/ Banja Luka, and to a lesser degree with administrative service of the city.

Of particular interest for the city is to solve the problem of connecting to the electrical energy supply ring at voltage of above 110 kV and therefore, special attention is paid to 400kv trunk Bihać – Prijedor – Banja Luka – Zagreb as well as the construction of the new 400 kV hub in Stanari which includes a trunk over Čelinac towards Banja Luka.