Context
Although Bosnia and Herzegovina has a significant supply of energy resources and is one of the few countries in the Balkans that exports electricity, it does not produce energy sustainably. At the same time, power consumption is increasing in the country due to inefficient usage, while the widespread use of wood and coal as fuel causes air pollution and CO2 emissions.
The existing policy framework does not provide the conditions necessary for an increased use of renewable energy and meeting the country's obligations under the Energy Community Treaty (EnCT). There is a lack of relevant programmes, knowledge and practical experience. Coordination and cooperation in the sector between the state, the entities and the lower levels of government remain generally weak. Hardly any networking or cooperation takes place between the key actors.
Objective
The preconditions have been put in place for a more conducive environment that encourages the increased use of renewable energy in Bosnia and Herzegovina.
Approach
By supporting the improvement of the legislative and regulatory framework for renewable energy and developing new market-based and target-oriented incentive schemes, the project aims to make the renewable energy sector more attractive to private and public sectors, local and international investors. The project cooperates with partners, both at the state level and in each of Bosnia and Herzegovina’s two entities, including the respective ministries of energy, and the electricity regulatory commissions. It also provides technical assistance to the renewable energy operators in both entities.
Together with these partners, the project is aiming to improve and strengthen in particular the framework conditions for the increased use of renewable energy in Bosnia and Herzegovina. Therefore, the project focuses on technical support in the following three main areas:
• Policy framework (strategic documents and decision-making, energy data, sector coordination)
• Regulatory Framework (improvements of administrative procedures for licensing and permitting with a focus on the small hydro sector, harmonisation of the regulatory framework)
• Financing Renewable Energy (introduction of marked-based support schemes, innovative business-models and technology concepts for renewable energy).
In each area, the project conducts supporting activities through:
• Specific policy advice to public sector institutions and established working groups on the government level,
• Implementation of capacity-building measures for the private and the public sector and
• Preparation of specific study reports, potential and costs analysis and legislative documents related to the mentioned fields.
The project also supports the creation of platforms, networks and other initiatives by and for the relevant actors in the energy sector, including policy makers and energy experts.