Bosnia and Herzegovina is a country with significant energy resources. It is indisputable that the potentials of renewable energy sources in B&H exist, but the question of their exploitation is being raised. Legal, regulatory, administrative and financial measures are necessary in order to further stimulate the use of renewable energy in Bosnia and Herzegovina and ensure the achievement of the set goals by 2030.

As a signatory to the Treaty establishing the Energy Community, B&H has undertaken to apply the EU regulatory framework for the energy sector. It has successfully introduced the basic principles of security of supply, competition and sustainability.

The energy market was liberalized in 2016, resulting in an increase in trade and a fall in wholesale and retail prices. The consequence of a tough energy policy has made a significant increase in renewable energy production in terms of small installations.

Our country is now facing the challenge of reforming its incentive systems. It was precisely this topic which was discussed, among other things, today within the framework of the session “Renewable Energy Sources – Achievements and Upcoming Obligations of the Renewable Energy Sources in B&H”, which was held within the conference part of Energa 2018. Namely, existing schemes of incentives in the production of electricity from renewable sources have their limitations. As mentioned, it is necessary to focus on new trends and development, as well as the development of market options for incentive schemes for Bosnia and Herzegovina.

Recognizing the needs and market development, it is necessary to switch to incentive schemes based on market principles, based on feed-in premiums and auctions. The reform focuses on cost estimates (incentive costs, system integration costs and regulatory costs) as well as on the benefits of market incentive schemes, said the Renewable Energy Adviser in GIZ, Hamid Mehinovic.

The incentive schemes based on market principles will increase the share of renewable energy sources in BiH in a cost-effective way. Mehinović recalled the goal of the Renewable Energy Sources (RES) stimulus within the EU policy – Integration of RES, which implies market integration, contribution to work and system stability, network connectivity and expansion, and access to the network.

A detailed concept that determines the degree of incentives and quantitative cost analysis, the analysis of the legal / regulatory framework, and the drafting of amendments, are just some of the next steps that need to be taken in order to more seriously talk about the reform of the current system of incentives for electricity producers from renewable sources in B&H.

The project ENERGA is being implemented under the sponsorship of the Ministry of Foreign Trade and Economic Relations of B&H, the Federal Ministry of Energy, Mining and Industry, the Federal Ministry of Environment and Tourism, the Sarajevo Canton Government, the Ministry of Economy of the Sarajevo Canton.

The partners are the Foreign Trade Chamber of B&H and the Chamber of Economy of the Federation of B&H, while the sponsors are the EU Special Representative Office in BiH, BH Gas, Operator for Renewable Energy Sources and Efficient Co-generation in the Federation of B&H, UNDP and USAID.