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This paper presents a detailed model of low-frequency oscillations and their damping within the Electric Power System (EPS) of Bosnia and Herzegovina (B&H). The system is modeled using MATLAB software, analysing the steady state and dynamic responses. This research highlights the challenges and impacts of integrating renewable energy sources, such as wind farms, on grid stability and oscillation damping. The paper utilizes eigenvalue analysis to investigate the dynamic characteristics of the system, emphasizing the need for efficient damping strategies to maintain system stability. The methodology includes a comprehensive review of existing literature, the creation of a detailed EPS model of B&H, and the application of eigenvalue and oscillation amplitude analysis to determine damping ratios. The dynamic responses of hydro power plants, HPP Mostar and HPP Jablanica, to transient disturbances are analysed to validate the model and refine damping strategies. The results indicate that the B&H EPS is well-damped, with all eigenvalues possessing negative real parts, and demonstrate the system's resilience to small disturbances. The results are compared with the technical report on the integration of the wind power plant WPP Podveležje. This comparative analysis shows consistent patterns between the modeled calculations and empirical data, confirming the robustness of the EPS model. This alignment underscores the effectiveness of current damping mechanisms and provides a foundational strategy for enhancing system stability with increasing renewable energy penetration. The findings highlight the importance of developing advanced control strategies to sustain system stability as the integration of variable renewable energy sources continues to grow. [ABSTRACT FROM AUTHOR]