Does Bosnia and Herzegovina develop its resources rationally?

Does Bosnia and Herzegovina develop its resources rationally?

Along with the level of energy consumption as an indicator for the country’s economic development, energy production from renewable energy sources will become a very important criterion for sustainable development. Most of the countries of Southeastern Europe is facing problems with power supply, frequent power shortages and the continuous dependence on imported electricity. In whole,

Along with the level of energy consumption as an indicator for the country’s economic development, energy production from renewable energy sources will become a very important criterion for sustainable development. Most of the countries of Southeastern Europe is facing problems with power supply, frequent power shortages and the continuous dependence on imported electricity.

In whole, the energy sector in Southeastern Europe is characterized as very high energy-intensity, low energy efficiency and lack of production from renewable energy sources.

In Bosnia and Herzegovina, early awareness of the need to better support development of renewable energy sources is slowly picking up. Decree on the use of renewable energy and cogeneration was adopted by the Government of the Federation BiH in
June this year aimed at encouraging the development of renewable energy projects. However, the implementation is expected in early 2011. The aim of this Decree is to stimulate greater production and consumption of electricity from renewable sources and cogeneration in the internal electricity market and the development of regulatory and technical infrastructure for renewable energy and cogeneration. Indirect objectives are reflected particularly in terms of removing barriers to increase the use of renewable energy sources (including administrative), reducing the influence of the use of fossil fuels, achieving the Kyoto targets, and job creation and entrepreneurship development in the energy sector. Regulation on the use of renewable energy sources and cogeneration can be found here.

Installations of renewable energy sources and cogeneration in the Federation, depending on the installed capacity, are divided into four categories: micro-plants (up to and including 150kW), mini plants (from 150 kW up to and including 1 MW), small plants (1MW up to and including 10 MW) and large plants over 10 MW.

Bosnia and Herzegovina has more than 50% of its territory covered by forests and has a significant potential in the wood biomass. According to the incentive rates in the region, the feed-in tariffs of electricity from biomass are the lowest in the region. Energis questions the safety strategies of the tariff system for energy from biomass, because it is not stimulating enough for domestic or sufficiently attractive for foreign investors, although this potential can make the fastest effects for a complete economy of BiH. In fact, according to European standards, from ten generated jobs of energy production from biomass, nine of them are domestic and only one position belongs to the production of elements that should be imported.

Furthermore, the presented graph is backed up with data. The prices in the table are shown in Eurocents. Thus, the price of energy from biomass power plants with installed capacity up to 150kW in BiH is € 0.0858 / kWh, while Croatia and Slovenia have twice the purchase price for electricity produced with biomass, € 0.1623 / kWh and € 0.224 / kWh respectively.

The increase of the tariffs in Bosnia would lead to improving our overall economy. It would create jobs in various sectors: transport, the production of pellets and wood chips, domestic production of biomass burners, etc. If we take into account of biomass power plants with installed capacity up to 1 MW, their incentive prices should be attractive enough to stimulate investors, which would lead to the regulation of the market. The feed-in tariffs of biomass power plants with the installed capacity of 150kW to 1MW shows that BiH is lagging far behind in the region.

Renewable Energy Projects in Bosnia and Herzegovina

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply