Implementing the energy transition in municipalities

Context

Most of the energy in Bosnia and Herzegovina is generated using lignite. It is costly to mine, has a bad climate footprint and degrades air quality. At the same time, the country has abundant solar, wind and bioenergy potential. In 2020, renewables covered around 40 per cent of electricity demand.

In recent years, the political and legal framework aimed at increasing energy efficiency and developing renewable energy has improved in Bosnia and Herzegovina as the country gradually moves closer to the European Union (EU). However, the country has not yet implemented the measures as expected.

Objective

Municipalities and private actors implement local energy transition.

Approach

The project supports municipalities and private actors in implementing measures for local energy transition. To achieve this, it provides advice to public, private sector and civil society organisations in the energy and construction sectors.

The project is financed by the EU and the German Federal Ministry for Economic Cooperation and Development (BMZ). The EU has been promoting the expansion of renewable energy with 3 million euros under the title 'EU4Collective Action for Energy Transition' since 2025. The project uses these funds to financially support sustainable energy pilot projects and advise them on their implementation. In addition, it informs citizens, representatives of public institutions and private actors on the benefits and possible uses of renewable energy.

The project is divided into three components:

1. Use of newly developed instruments in municipalities to promote the energy-efficient renovation of multi-apartment buildings.
2. Provision of technical and financial support for renewable energy pilot projects. These are implemented by energy communities in which municipalities participate.
3. Collection and use of data from private building renovation projects to develop the strategy of public stakeholders.

Last updated: March 2025