Difference between revisions of "Bosnia and Herzegovina Energy Situation"

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== Introduction ==
 
== Introduction ==
 +
Bosnia and Herzegovina is a country in Southeast Europe, situated on the Balkan Peninsula. It borders Serbia to the east, Montenegro to the southeast, and Croatia to the north and southwest. The country has a moderate continental climate with hot summers and cold, snowy winters. In the central and eastern regions, the geography is mountainous, in the northwest it is moderately hilly, and in the northeast it is predominantly flat. Herzegovina, the smaller, southern region, has a Mediterranean climate and is mostly mountainous.<ref name=":0">Wikipedia: Bosnia and Herzegovina. Retrieved September 2024.
 +
 +
https://en.wikipedia.org/wiki/Bosnia_and_Herzegovina</ref>
 +
 +
Bosnia and Herzegovina is an EU candidate country.<ref name=":0" />
  
 
== Energy Situation ==
 
== Energy Situation ==
 +
In 2021, the largest source of energy in Bosnia and Herzegovina was coal (51%), followed by oil with 22% contributing to the total energy supply.<ref>https://www.iea.org/countries/bosnia-and-herzegovina/energy-mix</ref> In terms of electricity generation, 60% is generated from coal and 37% is generated from hydropower.<ref>https://www.iea.org/countries/bosnia-and-herzegovina/electricity</ref>
 +
 +
Bosnia and Herzegovina has shown interest in increasing its use of renewable energy sources to diversify its energy mix and reduce dependence on conventional energy sources. The country has significant potential for renewable energy, including hydropower, wind, and solar.
 +
 +
Hydropower has historically been the dominant renewable energy source in Bosnia and Herzegovina, and several hydropower plants are in operation. The country has been exploring opportunities to expand its hydropower capacity, but such projects can face environmental and social challenges.
 +
 +
Wind and solar energy have also gained attention, and there were plans for the development of wind and solar projects in various regions. However, progress may depend on regulatory frameworks, investment incentives, and other factors that influence the renewable energy sector's growth.
 +
 +
=== Installed electricity capacity (MW) by Technology, Grid connection and Year ===
 +
<div class="grid stretch-items">
 +
<div class="width-1-3">
 +
{| class="wikitable"
 +
|+
 +
!Technology
 +
!Grid Conn
 +
!Year
 +
!Cap. (MW)
 +
|-
 +
|Solar photovoltaic
 +
|On-grid
 +
|2022
 +
|107.47
 +
|-
 +
|Onshore wind energy
 +
|On-grid
 +
|2022
 +
|135
 +
|-
 +
|Renewable hydropower
 +
|On-grid
 +
|2022
 +
|1836.78
 +
|-
 +
|Pumped storage
 +
|On-grid
 +
|2022
 +
|420
 +
|-
 +
|Solid biofuels
 +
|On-grid
 +
|2022
 +
|9.22
 +
|-
 +
|Biogas
 +
|On-grid
 +
|2022
 +
|0.99
 +
|-
 +
|Coal and peat
 +
|On-grid
 +
|2022
 +
|2135.62
 +
|-
 +
|Oil
 +
|On-grid
 +
|2022
 +
|21
 +
|-
 +
|Natural gas
 +
|On-grid
 +
|2022
 +
|10.23
 +
|-
 +
|Fossil fuels n.e.s.
 +
|On-grid
 +
|2022
 +
|57.89
 +
|}
 +
</div>
 +
 +
<div class="width-1-3">
 +
[[File:Installed Electricity Capacity in Percentage - Bosnia.png|center|600px|Installed Electricity Capacity in Percentage - Bosnia]]<br/>
 +
<center>Fig 1: Installed Electricity Capacity in Percentage</center>
 +
</div>
 +
</div>
 +
=== Energy Generation and Consumption ===
 +
{| class="wikitable"
 +
|+
 +
!Description of data [unit]
 +
!2020
 +
!2021
 +
|-
 +
|Electricity production [GWh]
 +
|15.391
 +
|17.055
 +
|-
 +
|Gross electricity consumption [GWh]
 +
|11.33
 +
|12.17
 +
|-
 +
|Consumption structure [GWh] / industrial, transport, services and other
 +
|5.176
 +
|5.761
 +
|-
 +
|Consumption structure [GWh] / households (residential customers)
 +
|4.795
 +
|4.911
 +
|}
 +
 +
=== Net Import & Net Export ===
 +
{| class="wikitable"
 +
|+
 +
!Description of data [unit]
 +
!2020
 +
!2021
 +
|-
 +
|Net imports [GWh]
 +
|3.266
 +
|3.312
 +
|-
 +
|Net exports [GWh]
 +
|7.327
 +
|8.197
 +
|}
 +
 +
=== Energy Losses ===
 +
{| class="wikitable"
 +
|+
 +
!Description of data [unit]
 +
!2020
 +
!2021
 +
|-
 +
|Losses in transmission [%]
 +
|1,75%
 +
|1.87%
 +
|-
 +
|Losses in distribution [%]
 +
|9,13%
 +
|9.22%
 +
|}
 +
 +
=== Transmission network ===
 +
{| class="wikitable"
 +
|+
 +
!Description of data [unit]
 +
!2020
 +
!2021
 +
|-
 +
|Horizontal transmission network [km]
 +
|6.421
 +
|6.423
 +
|-
 +
|Horizontal transmission network [km] / substation capacity [MVA]
 +
|13.045
 +
|13.066
 +
|}
 +
 +
=== No of consummers ===
 +
{| class="wikitable"
 +
|+
 +
!Description of data [unit]
 +
!2020
 +
!2021
 +
|-
 +
|Electricity customers / total
 +
|1.588.773
 +
|1.570.415
 +
|-
 +
|Electricity customers / non-households
 +
|137.629
 +
|125.895
 +
|-
 +
|Eligible customers under national legislation
 +
|1.588.773
 +
|1.570.415
 +
|}
 +
 +
=== Internal Market ===
 +
{| class="wikitable"
 +
|+
 +
!Description of data [unit]
 +
!2020
 +
!2021
 +
|-
 +
|Internal market / electricity supplied to active eligible customers [MWh]
 +
|3.423.615
 +
|3.851.155
 +
|-
 +
|Internal market / share of final consumption [%]
 +
|34%
 +
|36%
 +
|}
 +
 +
== Renewable Energy Potential ==
 +
 +
{| class="wikitable"
 +
|+
 +
!
 +
!Unit
 +
!Reference Case 2030
 +
!Remap 2030
 +
|-
 +
|Total installed power generation capacity
 +
|MW
 +
|5,103.00
 +
|6,334.00
 +
|-
 +
|Renewable capacity
 +
|MW
 +
|3,069.00
 +
|5,212.00
 +
|-
 +
|Hydropower
 +
|MW
 +
|2,454.00
 +
|2,454.00
 +
|-
 +
|Wind - onshoore
 +
|MW
 +
|548.00
 +
|1,033.00
 +
|-
 +
|Biofuels (solid, liquid, gaseous)
 +
|MW
 +
|42.00
 +
|362.00
 +
|-
 +
|Solar PV
 +
|MW
 +
|25.00
 +
|1,363.00
 +
|-
 +
|Non-renewable capacity
 +
|MW
 +
|2,034.00
 +
|1,122.00
 +
|-
 +
|Coal
 +
|MW
 +
|2,034.00
 +
|1,122.00
 +
|}
  
−
== Renewable Energy ==
+
<div class="grid stretch-items">
 +
<div class="width-1-2>
 +
{| class="wikitable"
 +
|+
 +
!Technologies
 +
!Technical Potential MW
 +
|-
 +
|'''Solar PV'''
 +
|2,963.7
 +
|-
 +
|'''Wind'''
 +
|13,141.1
 +
|-
 +
|'''Hydro'''
 +
|6,110.0
 +
|-
 +
|≤ 10 MW
 +
|860.0
 +
|-
 +
|> 10 MW
 +
|5,250.0
 +
|-
 +
|Pumping
 +
|
 +
|-
 +
|'''Biomass'''
 +
|983.0
 +
|-
 +
|Biogas
 +
|150.0
 +
|-
 +
|Solid Biomass
 +
|813.0
 +
|-
 +
|Biowaste
 +
|20.0
 +
|-
 +
|'''Geothermal el.'''
 +
|7.1
 +
|-
 +
|Total
 +
|23,204.9
 +
|}
 +
</div>
 +
<div class="width-1-2>
 +
[[File:Technical Potential Capacity in Percentage - Bosnia.png|center|500px|Technical Potential Capacity in Percentage - Bosnia]]
 +
<center>Fig 2: Technical potential Capacity in Percentage</center>
 +
</div>
 +
</div>
 +
As we can see, if Bosnia and Herzegovina would use its entire technical potential,ti would increase the generating power by 390%, and would become one of the key net exporter of the WB6
  
 
== Fossil Fuels ==
 
== Fossil Fuels ==
 +
 +
==== Greenhouse gas emissions ====
 +
Greenhouse gas emissions in Bosnia and Herzegovina are (for 2018) around 27,44 million tons of CO2 equivalent.
 +
 +
<div class="grid stretch-items">
 +
<div class="width-1-2>
 +
{| class="wikitable"
 +
|+
 +
!
 +
!Unit
 +
!Reference Case 2030
 +
!Remap 2030
 +
|-
 +
|Energy-related CO2 emissions
 +
|[Mt CO2 /yr]
 +
|17.4
 +
|13.1
 +
|}
 +
</div>
 +
<div class="width-1-2>
 +
[[File:Sources of greenhouse gases - Bosnia.png|center|500px|Sources of greenhouse gases - Bosnia]]
 +
<center>Fig 3: Sources of GreenHouse gases</center>
 +
</div>
 +
</div>
  
 
== Key Problems of the Energy Sector ==
 
== Key Problems of the Energy Sector ==
 +
=== Challenges on increasing the RES share ===
 +
Bosnia and Herzegovina (BiH) faces specific challenges in increasing the share of renewable energy in its energy mix. As:
 +
{| class="wikitable"
 +
|+
 +
|Dependence on Coal:
 +
|Bosnia and Herzegovina has traditionally relied heavily on coal for electricity generation. Transitioning away from coal to renewables poses economic and social challenges, especially in regions where the coal industry is a significant employer.
 +
|-
 +
|Political and Regulatory Issues:
 +
|BiH consists of two entities, the Federation of Bosnia and Herzegovina and Republika Srpska, each with its own political structures. Coordinating and implementing consistent national policies on renewable energy can be challenging due to political complexities.
 +
|-
 +
|Limited Investment and Financing:
 +
|The lack of financial resources and limited access to international financing may hinder the development of renewable energy projects. Attracting private investments and securing financing are crucial for the expansion of the renewable energy sector.
 +
|-
 +
|Grid Integration Challenges:
 +
|The existing power grid may not be well-equipped to handle the intermittent nature of renewable energy sources. Upgrades to the grid infrastructure are essential for integrating renewable energy efficiently.
 +
|-
 +
|Public Awareness and Acceptance:
 +
|Public awareness and acceptance of renewable energy projects can be a challenge. Communities may have concerns about the visual impact, noise, or other environmental and social aspects of renewable energy installations.
 +
|-
 +
|Land Use and Spatial Planning:
 +
|Efficient land use planning is critical for the successful deployment of renewable energy projects. Competing land uses and unclear spatial planning regulations can complicate the development process.
 +
|-
 +
|Policy Framework and Incentives:
 +
|The absence of a clear and stable regulatory framework for renewable energy can hinder investment. Well-defined policies and incentives are necessary to attract developers and investors to the sector.
 +
|-
 +
|Technical and Technological Challenges:
 +
|Limited expertise and technical know-how in renewable energy technologies may pose challenges. Building local capacity and expertise in areas such as solar, wind, and biomass energy is crucial.
 +
|-
 +
|Energy Storage:
 +
|Energy storage solutions are essential for managing the intermittent nature of renewable energy sources. The lack of widespread energy storage infrastructure may limit the scalability of renewable energy projects.
 +
|-
 +
|Environmental Considerations:
 +
|Balancing the development of renewable energy with environmental considerations is crucial. Ensuring that projects adhere to environmental standards and regulations is important for sustainability.
 +
|-
 +
|Market Design and Electricity Pricing:
 +
|The design of electricity markets and pricing structures can impact the competitiveness of renewable energy. Ensuring fair market conditions and a level playing field for renewable energy providers is important.
 +
|}
  
 
== Policy Framework, Laws and Regulations ==
 
== Policy Framework, Laws and Regulations ==
 +
Since the Dayton Agreement from 1995 the country is largely decentralized and is constituted of the two entities “Federation of Bosnia and Hercegovina” (Federacija Bosne i Hercegovine) and the “Republika Srpska”. The promotion of renewable energy sources is regulated on the entity level.
 +
 +
In the Federation of Bosnia and Herzegovina, the production of electricity from renewable energy sources is mainly promoted through a feed-in tariff.
 +
 +
In the Republika Srpska, the production of electricity from renewable energy sources is mainly promoted through a feed-in tariff.
 +
 +
Renewable energy matters are regulated in special provisions; however the connection to the grid is basically regulated by the general legislation. Electricity from renewable energy sources is given priority.
 +
 +
=== Support schemes ===
 +
The Federation of Bosnia and Herzegovina promotes power production from renewable energy sources mainly through a feed-in tariff.
 +
 +
The Republic of Srpska promotes the power production from renewable energy sources mainly through a feed-in tariff.
 +
{| class="wikitable"
 +
|+
 +
|Federation of Bosnia and Herzegovina: Feed-in tariff (Guaranteed Price)
 +
|In the Federation of Bosnia and Herzegovina, the main support scheme for the production of electricity from renewable energy sources is a feed- in tariff, regulated by the RES Law FBiH and special Decrees and Rulebooks. The plant operators need to obtain the status of a „privileged power producer“ („privilegovani proizvođač električne energije“) and in order to acquire the right to a price support for the generated electricity under the legal requirements.
 +
|-
 +
|Republic of Srpska: Feed-in tariff
 +
|In the Republic of Srpska, the main support schemes for the production of electricity from renewable energy sources are feed-in tariff (”Право на гарантовану откупну цијену”, Art. 20 § 1 lit. г RES Law RS) and premium, regulated by the Energy Law RS, Electricity Law RS and above all the RES Law RS, special Decrees and Rulebooks. Firstly, the plant operator needs to obtain a RES Certificate and a Decision on the Right to Support by applying to the Energy Regulator
 +
|}
  
 
== Institutional Set up in the Energy Sector ==
 
== Institutional Set up in the Energy Sector ==
 +
The energy sector in Bosnia and Herzegovina involves various key actors responsible for the generation, transmission, distribution, and regulation of energy. These key actors work together within the regulatory framework to ensure the efficient functioning, sustainability, and development of the energy market in Bosnia and Herzegovina. Collaboration among these stakeholders is essential for achieving energy security, promoting renewable energy, and meeting the country's energy goals.
 +
{| class="wikitable"
 +
|+
 +
|1. Ministry of Foreign Trade and Economic Relations:
 +
|The Ministry of Foreign Trade and Economic Relations plays a role in formulating and implementing energy policies in Bosnia and Herzegovina. It is involved in international energy agreements and collaboration.
 +
|-
 +
|2. Energy Regulatory Commission (RKE/FERK):
 +
|The Energy Regulatory Commission regulates and oversees the energy sector, ensuring fair competition, consumer protection, and adherence to legal and regulatory standards.
 +
|-
 +
|3. Transmission System Operator (Elektroprenos BiH):
 +
|The Transmission System Operator manages the high- voltage electricity transmission system in Bosnia and Herzegovina. It is responsible for the operation, maintenance, and development of the transmission infrastructure.
 +
|-
 +
|4. Distribution System Operators (Elektroprivreda BiH & Elektroprivreda RS):
 +
|Elektroprivreda BiH and Elektroprivreda RS are the state- owned companies responsible for electricity generation, distribution, and retail in the Federation of Bosnia and Herzegovina and Republika Srpska, respectively.
 +
|-
 +
|5. Independent System Operator (NOSBiH):
 +
|The Independent System Operator operates independently from generation and supply activities and is responsible for ensuring nondiscriminatory access to the transmission network.
 +
|-
 +
|6. Independent Power Producers (IPPs):
 +
|Independent Power Producers are private entities involved in electricity generation. They contribute to the diversification of the generation mix and may operate renewable or conventional power plants.
 +
|-
 +
|7. Electric Power Industry of Bosnia and Herzegovina (Elektroprivreda BiH):
 +
|Elektroprivreda BiH is a state-owned power utility in the Federation of Bosnia and Herzegovina. It is involved in electricity generation, distribution, and supply.
 +
|-
 +
|8. Electric Power Industry of Republika Srpska (Elektroprivreda RS):
 +
|Elektroprivreda RS is a state-owned power utility in Republika Srpska. Similar to Elektroprivreda BiH, it is involved in electricity generation, distribution, and supply.
 +
|-
 +
|9. Investors and Financing Institutions:
 +
|Investors, both domestic and foreign, play a crucial role in funding and developing energy projects. Financing institutions, such as banks and international financial organizations, provide funding and support for energy infrastructure projects.
 +
|-
 +
|10. International Organizations and Donors:
 +
|International organizations and donor agencies may provide support, technical assistance, and funding for energy sector development projects, especially those focused on sustainability, renewable energy, and regulatory reforms.
 +
|-
 +
|11. Consumers and Industrial Users:
 +
|End-users, including residential, commercial, and industrial consumers, are essential actors in the energy market. Their energy consumption patterns and demand influence market dynamics.
 +
|-
 +
|12. Government Agencies and Local Authorities:
 +
|Various government agencies and local authorities are involved in permitting, land-use planning, and environmental assessments for energy projects. They also play a role in setting policies that impact the energy sector.
 +
|}
  
 
==<span style="background-color: rgb(255, 255, 255);">Other Key Actors / Activities of Donors, Implementing Agencies, Civil Society Organisations</span>==
 
==<span style="background-color: rgb(255, 255, 255);">Other Key Actors / Activities of Donors, Implementing Agencies, Civil Society Organisations</span>==
Line 30: Line 436:
 
[[Category:Bosnia and Herzegovina]]
 
[[Category:Bosnia and Herzegovina]]
 
[[Category:Western Balkans]]
 
[[Category:Western Balkans]]
 +
<references />Further sources:
 +
 +
* IRENA, Bosnia and Herzegovina Renewables Readiness Assessment
 +
* IRENA, Renewable Energy Prospects for Central and South-Eastern Europe Energy Connectivity (CESEC), 2020
 +
* IRENA, Cost-competitive renewable power generation: Potential across South East Europe, 2017
 +
* LEGAL SOURCES ON RENEWABLE ENERGY res-legal.eu
 +
* Energy Community,Bosnia and Herzegovina

Latest revision as of 15:28, 25 October 2024


Bosnia and Herzegovina
Flag of Bosnia and Herzegovina.png
Location _______.png

Capital:

Sarajevo

Region:

Europe & Central Asia

Coordinates:

43.915886° N, 17.779076° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

51,210

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

3,210,847 (2023)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

50 (2023)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

27,054,889,363 (2023)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

8,426.09 (2023)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

100.00 (2022)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

22.73 (2014)

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

77.52 (2014)

Source: World Bank


Introduction

Bosnia and Herzegovina is a country in Southeast Europe, situated on the Balkan Peninsula. It borders Serbia to the east, Montenegro to the southeast, and Croatia to the north and southwest. The country has a moderate continental climate with hot summers and cold, snowy winters. In the central and eastern regions, the geography is mountainous, in the northwest it is moderately hilly, and in the northeast it is predominantly flat. Herzegovina, the smaller, southern region, has a Mediterranean climate and is mostly mountainous.[1]

Bosnia and Herzegovina is an EU candidate country.[1]

Energy Situation

In 2021, the largest source of energy in Bosnia and Herzegovina was coal (51%), followed by oil with 22% contributing to the total energy supply.[2] In terms of electricity generation, 60% is generated from coal and 37% is generated from hydropower.[3]

Bosnia and Herzegovina has shown interest in increasing its use of renewable energy sources to diversify its energy mix and reduce dependence on conventional energy sources. The country has significant potential for renewable energy, including hydropower, wind, and solar.

Hydropower has historically been the dominant renewable energy source in Bosnia and Herzegovina, and several hydropower plants are in operation. The country has been exploring opportunities to expand its hydropower capacity, but such projects can face environmental and social challenges.

Wind and solar energy have also gained attention, and there were plans for the development of wind and solar projects in various regions. However, progress may depend on regulatory frameworks, investment incentives, and other factors that influence the renewable energy sector's growth.

Installed electricity capacity (MW) by Technology, Grid connection and Year

Technology Grid Conn Year Cap. (MW)
Solar photovoltaic On-grid 2022 107.47
Onshore wind energy On-grid 2022 135
Renewable hydropower On-grid 2022 1836.78
Pumped storage On-grid 2022 420
Solid biofuels On-grid 2022 9.22
Biogas On-grid 2022 0.99
Coal and peat On-grid 2022 2135.62
Oil On-grid 2022 21
Natural gas On-grid 2022 10.23
Fossil fuels n.e.s. On-grid 2022 57.89
Installed Electricity Capacity in Percentage - Bosnia

Fig 1: Installed Electricity Capacity in Percentage

Energy Generation and Consumption

Description of data [unit] 2020 2021
Electricity production [GWh] 15.391 17.055
Gross electricity consumption [GWh] 11.33 12.17
Consumption structure [GWh] / industrial, transport, services and other 5.176 5.761
Consumption structure [GWh] / households (residential customers) 4.795 4.911

Net Import & Net Export

Description of data [unit] 2020 2021
Net imports [GWh] 3.266 3.312
Net exports [GWh] 7.327 8.197

Energy Losses

Description of data [unit] 2020 2021
Losses in transmission [%] 1,75% 1.87%
Losses in distribution [%] 9,13% 9.22%

Transmission network

Description of data [unit] 2020 2021
Horizontal transmission network [km] 6.421 6.423
Horizontal transmission network [km] / substation capacity [MVA] 13.045 13.066

No of consummers

Description of data [unit] 2020 2021
Electricity customers / total 1.588.773 1.570.415
Electricity customers / non-households 137.629 125.895
Eligible customers under national legislation 1.588.773 1.570.415

Internal Market

Description of data [unit] 2020 2021
Internal market / electricity supplied to active eligible customers [MWh] 3.423.615 3.851.155
Internal market / share of final consumption [%] 34% 36%

Renewable Energy Potential

Unit Reference Case 2030 Remap 2030
Total installed power generation capacity MW 5,103.00 6,334.00
Renewable capacity MW 3,069.00 5,212.00
Hydropower MW 2,454.00 2,454.00
Wind - onshoore MW 548.00 1,033.00
Biofuels (solid, liquid, gaseous) MW 42.00 362.00
Solar PV MW 25.00 1,363.00
Non-renewable capacity MW 2,034.00 1,122.00
Coal MW 2,034.00 1,122.00
Technologies Technical Potential MW
Solar PV 2,963.7
Wind 13,141.1
Hydro 6,110.0
≤ 10 MW 860.0
> 10 MW 5,250.0
Pumping
Biomass 983.0
Biogas 150.0
Solid Biomass 813.0
Biowaste 20.0
Geothermal el. 7.1
Total 23,204.9
Technical Potential Capacity in Percentage - Bosnia
Fig 2: Technical potential Capacity in Percentage

As we can see, if Bosnia and Herzegovina would use its entire technical potential,ti would increase the generating power by 390%, and would become one of the key net exporter of the WB6

Fossil Fuels

Greenhouse gas emissions

Greenhouse gas emissions in Bosnia and Herzegovina are (for 2018) around 27,44 million tons of CO2 equivalent.

Unit Reference Case 2030 Remap 2030
Energy-related CO2 emissions [Mt CO2 /yr] 17.4 13.1
Sources of greenhouse gases - Bosnia
Fig 3: Sources of GreenHouse gases

Key Problems of the Energy Sector

Challenges on increasing the RES share

Bosnia and Herzegovina (BiH) faces specific challenges in increasing the share of renewable energy in its energy mix. As:

Dependence on Coal: Bosnia and Herzegovina has traditionally relied heavily on coal for electricity generation. Transitioning away from coal to renewables poses economic and social challenges, especially in regions where the coal industry is a significant employer.
Political and Regulatory Issues: BiH consists of two entities, the Federation of Bosnia and Herzegovina and Republika Srpska, each with its own political structures. Coordinating and implementing consistent national policies on renewable energy can be challenging due to political complexities.
Limited Investment and Financing: The lack of financial resources and limited access to international financing may hinder the development of renewable energy projects. Attracting private investments and securing financing are crucial for the expansion of the renewable energy sector.
Grid Integration Challenges: The existing power grid may not be well-equipped to handle the intermittent nature of renewable energy sources. Upgrades to the grid infrastructure are essential for integrating renewable energy efficiently.
Public Awareness and Acceptance: Public awareness and acceptance of renewable energy projects can be a challenge. Communities may have concerns about the visual impact, noise, or other environmental and social aspects of renewable energy installations.
Land Use and Spatial Planning: Efficient land use planning is critical for the successful deployment of renewable energy projects. Competing land uses and unclear spatial planning regulations can complicate the development process.
Policy Framework and Incentives: The absence of a clear and stable regulatory framework for renewable energy can hinder investment. Well-defined policies and incentives are necessary to attract developers and investors to the sector.
Technical and Technological Challenges: Limited expertise and technical know-how in renewable energy technologies may pose challenges. Building local capacity and expertise in areas such as solar, wind, and biomass energy is crucial.
Energy Storage: Energy storage solutions are essential for managing the intermittent nature of renewable energy sources. The lack of widespread energy storage infrastructure may limit the scalability of renewable energy projects.
Environmental Considerations: Balancing the development of renewable energy with environmental considerations is crucial. Ensuring that projects adhere to environmental standards and regulations is important for sustainability.
Market Design and Electricity Pricing: The design of electricity markets and pricing structures can impact the competitiveness of renewable energy. Ensuring fair market conditions and a level playing field for renewable energy providers is important.

Policy Framework, Laws and Regulations

Since the Dayton Agreement from 1995 the country is largely decentralized and is constituted of the two entities “Federation of Bosnia and Hercegovina” (Federacija Bosne i Hercegovine) and the “Republika Srpska”. The promotion of renewable energy sources is regulated on the entity level.

In the Federation of Bosnia and Herzegovina, the production of electricity from renewable energy sources is mainly promoted through a feed-in tariff.

In the Republika Srpska, the production of electricity from renewable energy sources is mainly promoted through a feed-in tariff.

Renewable energy matters are regulated in special provisions; however the connection to the grid is basically regulated by the general legislation. Electricity from renewable energy sources is given priority.

Support schemes

The Federation of Bosnia and Herzegovina promotes power production from renewable energy sources mainly through a feed-in tariff.

The Republic of Srpska promotes the power production from renewable energy sources mainly through a feed-in tariff.

Federation of Bosnia and Herzegovina: Feed-in tariff (Guaranteed Price) In the Federation of Bosnia and Herzegovina, the main support scheme for the production of electricity from renewable energy sources is a feed- in tariff, regulated by the RES Law FBiH and special Decrees and Rulebooks. The plant operators need to obtain the status of a „privileged power producer“ („privilegovani proizvođač električne energije“) and in order to acquire the right to a price support for the generated electricity under the legal requirements.
Republic of Srpska: Feed-in tariff In the Republic of Srpska, the main support schemes for the production of electricity from renewable energy sources are feed-in tariff (”Право на гарантовану откупну цијену”, Art. 20 § 1 lit. г RES Law RS) and premium, regulated by the Energy Law RS, Electricity Law RS and above all the RES Law RS, special Decrees and Rulebooks. Firstly, the plant operator needs to obtain a RES Certificate and a Decision on the Right to Support by applying to the Energy Regulator

Institutional Set up in the Energy Sector

The energy sector in Bosnia and Herzegovina involves various key actors responsible for the generation, transmission, distribution, and regulation of energy. These key actors work together within the regulatory framework to ensure the efficient functioning, sustainability, and development of the energy market in Bosnia and Herzegovina. Collaboration among these stakeholders is essential for achieving energy security, promoting renewable energy, and meeting the country's energy goals.

1. Ministry of Foreign Trade and Economic Relations: The Ministry of Foreign Trade and Economic Relations plays a role in formulating and implementing energy policies in Bosnia and Herzegovina. It is involved in international energy agreements and collaboration.
2. Energy Regulatory Commission (RKE/FERK): The Energy Regulatory Commission regulates and oversees the energy sector, ensuring fair competition, consumer protection, and adherence to legal and regulatory standards.
3. Transmission System Operator (Elektroprenos BiH): The Transmission System Operator manages the high- voltage electricity transmission system in Bosnia and Herzegovina. It is responsible for the operation, maintenance, and development of the transmission infrastructure.
4. Distribution System Operators (Elektroprivreda BiH & Elektroprivreda RS): Elektroprivreda BiH and Elektroprivreda RS are the state- owned companies responsible for electricity generation, distribution, and retail in the Federation of Bosnia and Herzegovina and Republika Srpska, respectively.
5. Independent System Operator (NOSBiH): The Independent System Operator operates independently from generation and supply activities and is responsible for ensuring nondiscriminatory access to the transmission network.
6. Independent Power Producers (IPPs): Independent Power Producers are private entities involved in electricity generation. They contribute to the diversification of the generation mix and may operate renewable or conventional power plants.
7. Electric Power Industry of Bosnia and Herzegovina (Elektroprivreda BiH): Elektroprivreda BiH is a state-owned power utility in the Federation of Bosnia and Herzegovina. It is involved in electricity generation, distribution, and supply.
8. Electric Power Industry of Republika Srpska (Elektroprivreda RS): Elektroprivreda RS is a state-owned power utility in Republika Srpska. Similar to Elektroprivreda BiH, it is involved in electricity generation, distribution, and supply.
9. Investors and Financing Institutions: Investors, both domestic and foreign, play a crucial role in funding and developing energy projects. Financing institutions, such as banks and international financial organizations, provide funding and support for energy infrastructure projects.
10. International Organizations and Donors: International organizations and donor agencies may provide support, technical assistance, and funding for energy sector development projects, especially those focused on sustainability, renewable energy, and regulatory reforms.
11. Consumers and Industrial Users: End-users, including residential, commercial, and industrial consumers, are essential actors in the energy market. Their energy consumption patterns and demand influence market dynamics.
12. Government Agencies and Local Authorities: Various government agencies and local authorities are involved in permitting, land-use planning, and environmental assessments for energy projects. They also play a role in setting policies that impact the energy sector.

Other Key Actors / Activities of Donors, Implementing Agencies, Civil Society Organisations

Further Information

References

  1. ↑ 1.0 1.1 Wikipedia: Bosnia and Herzegovina. Retrieved September 2024. https://en.wikipedia.org/wiki/Bosnia_and_Herzegovina
  2. ↑ https://www.iea.org/countries/bosnia-and-herzegovina/energy-mix
  3. ↑ https://www.iea.org/countries/bosnia-and-herzegovina/electricity

Further sources:

  • IRENA, Bosnia and Herzegovina Renewables Readiness Assessment
  • IRENA, Renewable Energy Prospects for Central and South-Eastern Europe Energy Connectivity (CESEC), 2020
  • IRENA, Cost-competitive renewable power generation: Potential across South East Europe, 2017
  • LEGAL SOURCES ON RENEWABLE ENERGY res-legal.eu
  • Energy Community,Bosnia and Herzegovina
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