Decarbonization of the energy sector in Bosnia and Herzegovina

Project description

Title: Decarbonization of the energy sector in Bosnia and Herzegovina
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Countries: Bosnia and Herzegovina
Lead exeuting agency: Ministry of Foreign Trade and Economic Relations (MoFTER)
Overall term: 2020 to 2023


With the aim of creating a stable and single regulatory framework and market space that ensures reliable energy supply and attracts investments in a low-carbon energy sector an Energy Community was established between the European Union (EU) and a number of South-eastern European countries and beyond. As one of its contracting parties, Bosnia and Herzegovina is committed to implementing the EU acquis communautaire relevant to energy, including a set of measures to liberalise and decarbonise the energy sector.

In this context, the Government of Bosnia and Herzegovina has set ambitious short-term targets for increased energy efficiency and the use of renewable energy. It is currently preparing a medium-term decarbonisation strategy that integrates sectoral energy and climate strategies with the year 2030 as its time horizon. The strategic and legal framework promoting decarbonisation of the country’s energy sector has, however, not yet been sufficiently implemented. Little progress has been achieved in the fields of energy-efficient building renovations, energy generation from renewable energy sources (beyond large-scale hydro power) and citizen participation in energy transition.


The government of Bosnia and Herzegovina gradually implements decarbonisation measures and monitors national integrated energy and climate targets. Public institutions are prepared to roll-out energy efficiency programmes for renovation of residential buildings. Institutions use sustainable support instruments to increase the share of large-scale renewable energy together with citizen-centred promotion of decentralised energy supply.


The project assists the Ministry of Foreign Trade and Economic Relations (MoFTER) and the entity ministries of energy in developing individual and organisational capacity. The goal is to set up functional units that are dedicated to planning, coordinating and monitoring long-term decarbonisation scenarios aligned to the 2050 targets. Supporting the creation of a digital monitoring system operated by the state and entity ministries of energy, the state and the entity agencies of statistics and other relevant authorities will allow for progress tracking. Furthermore, the project is improving the abilities of public institutions to conduct public consultations and to establish dialogue between civil society and the public and private sectors. In addition to this, energy managers at state, entity, cantonal and municipal level receive training to improve the quality of data collection using the envisaged monitoring system.

By promoting decarbonisation in the residential building sector, the project supports the competent authorities in creating national energy-efficiency programmes in a participatory process that involves financing institutions, companies and households from the early planning stage. It also creates digitalised instruments, improves the capacities of those responsible for making the programme work, involves public and private sectors as well as citizens through public outreach campaigns, and initiates amendments to the current legislation.

Translating strategy into action, the project supports pilot processes that promote decarbonisation in power generation. On the one hand, the project boosts the capacities of local actors to prepare business plans for citizen energy projects, which in turn fosters citizen participation in the envisaged energy sector reform. On the other hand, it provides advice to conduct a first auction for renewable energy generation and supports public institutions to develop the necessary capacities.

Last update: January 2021

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