ENERGY

The Ministry of Foreign Trade and Economic Relations of BiH is in charge of carrying out tasks within the competence of BiH relating to the definition of policy, basic principles, coordination of activities and harmonization of plans of the entities and institutions internationally in the field of energy. Also, the Stabilization and Association Agreement stipulates that cooperation between BiH and the EU will focus on the priorities of the European acquis in the area of energy, including, where appropriate, aspects of nuclear safety. This cooperation will be based on the Treaty establishing the Energy Community, and will be developed with the aim of gradually integrating Bosnia and Herzegovina into European energy markets.

The energy sector is one of the most powerful economic sectors of Bosnia and Herzegovina with a long tradition and huge potentials and possibilities for further development and investment.

Bosnia and Herzegovina owns different indigenous energy sources:

-        Thanks to coal, Bosnia and Herzegovina is largely energy-independent, as coal accounts for over 65% of its total primary energy consumption. The total geological reserves of coal in BiH amount to about 5.763 billion tons, of which 2.625 billion tons are balanced: 1.437 billion of lignite and 1.187 billion of brown coal. Brown coal is of relatively good quality, the average heat value of pure brown coal in Bosnia and Herzegovina is about 16.750 kJ / kg. Lignite is of high quality, clean; its heat value is 7500-12600 kJ / kg, which allows it to be widely used. The most important brown coal reserves are found in the following basins: Central Bosnia (reservoirs: Kakanj, Zenica, Breza and Bila), Banovići-Đurđevik (Seona, Central basin, Đurđevik), Ugljevik (Bogutovo Selo, Ugljevik-Istok, Glinje, Mezgraja, Tobut- Peljave), Miljevina and Kamengra, and lignite in the basins of Kreka, Gacko, Stanari, Bugojno, Livno and Duvno. These basins represent the present and future potential for thermal power needs.

Over 90% of the produced coal is used in thermal power plants for the production of electricity.

-  Bosnia and Herzegovina also has a huge hydro potential of 6,000 MW. According to the studies done so far, BiH uses only 35% of its available hydro potential. Significant interest of investors has been noted for the construction of both large and small hydropower plants in BiH.

- Considering the goals of the European 2020 Strategy, investors have recently expressed great interest in investing in production of electricity from renewable sources, primarily from wind farms in BiH.

- According to the analyses, it can be estimated that the total potential of the construction of wind farms, for which the interest and activity of the project holders is recorded, is about 900 MW. The total technical potential for the use of wind energy in Bosnia and Herzegovina is estimated at approx. 2.000 MW, whereby it should be emphasized that the aforementioned amount came from considering the availability of suitable space for wind farms in BiH without taking into account possible limitations (connection to the grid, environmental protection, etc.)

- Bosnia and Herzegovina has significant potential for the production of energy products based on wood - over 53% of the territory of Bosnia and Herzegovina is covered with forest and forest land. Sources of raw materials for the production of energy from biomass are very favourable, including about 1.5 million m³ of forest residues and wood industry residues (wood waste, sawdust, wood chips and technical wood waste, etc.).

-         According to the data on solar radiation in the Balkans, Bosnia and Herzegovina has significant solar energy resources, above the European average, with an exceptionally favourable seasonal schedule, which gives the opportunity for its efficient and long-term use. Based on all collected data and conducted analyses it can be concluded that there is a significant potential for solar energy use in the territory of Bosnia and Herzegovina, which amounts to 70.5 million GWh of radiated energy of total annual solar radiation. There are currently more than 150 small solar power plants, but their share in the total production of electricity in BiH is still insignificant.

- Possibilities for exploitation of geothermal energy are available to a large extent, but not yet sufficiently researched and exploited. The total possible installed capacity of geothermal sources in BiH is 9.25 MWt taking into account only the possibility of space heating, i.e. 90.2 if geothermal energy is considered for space heating and recreational and balneological needs.

- Preliminary research of oil and gas indicate the existence of perspective deposits in a large number of places in BiH (reserves are estimated at around 50 million tons of oil).

The tasks within the competence of the Sector are organized within:

-        Department for Primary Energy and Policy;

-        Department for Secondary Energy and Projects;

-        Department for Project Implementation.

The Department for Primary Energy and Policy carries out the study-analytical, administrative and organizational tasks of coordination, preparation, proposing and implementation of measures, development policy, laws, by-laws and other regulations, analytical monitoring and expert analysis, information and opinions related to participation in the planning of the development of the BiH energy sector; proposing the BiH electricity transmission policy; coordination of the use of energy resources in cooperation with the entities and the creation of an appropriate database; proposing an energy policy for managing the single electricity market in BiH, as well as its connection with other energy systems; participation in the creation of rules of the domestic electricity market and network code; preparation of draft laws and relevant by-laws of the energy sector and monitoring their implementation; monitoring activities related to the work of the independent State Electricity Regulatory Commission; monitoring the activities of the Independent System Operator and the Transmission Company; collecting and analysing electricity sector statistics including import, export and transit; participation in proposing and monitoring regional investments related to electricity, gas and oil; participation in the preparation of bilateral and multilateral agreements related to the sharing of energy resources; proposing policies for the transmission of gas and other energy products; cooperation with BiH institutions and entities in charge of the field of energy; together with the competent entity ministries, cooperation with international statistical organizations; cooperation of BiH in international institutions and organizations in the field of energy and coordination of activities; work on the harmonization of energy regulation with European standards.

The Department for Secondary Energy and Projects carries out study-analytical, administrative and organizational tasks of coordination, preparation, proposing and implementation of measures, development policy, laws, by-laws and other regulations, analytical monitoring and development of expert analyses, information and opinions related to participation in the planning of the development of the BiH energy sector; coordination of implementation of international agreements and projects; in the process of European integration, active participation in the whole cycle of EU projects: programming, implementation, monitoring and evaluation; coordination of activities to ensure safe energy supply, with the efficient use of energy and the use of renewable energy resources according to EU directives; coordination of the activities of international institutions in order to achieve a synergistic effect in the development of the energy sector according to the set goals in the process of harmonization with the EU directives / standards; preparation of draft laws and relevant by-laws of the energy sector and monitoring their implementation; monitoring activities related to the work of the independent State Electric Power Regulatory Commission, Elektroprenos BiH and the Independent System Operator; collecting and analysing electricity sector statistics including import, export and transit; participation in proposing and monitoring regional investments related to electricity; participation in the preparation of bilateral and multilateral agreements related to the sharing of energy resources; cooperation with BiH institutions and entities in charge of the field of energy; cooperation of BiH in international institutions and organizations in the field of electricity, renewable sources and energy efficiency, and coordination of activities; work on harmonization of regulations in the field of electricity, renewable energy sources and energy efficiency with European standards.

The Department for Project Implementation carries out basic activities, such as: tasks that involve preparation of pre-drafts, drafts and proposals of the budget, the final account of the project and the general balance of assets, the preparation of analyses, reports, information and other materials in accordance with the prescribed domestic and foreign methodologies ; expert-operational activities include: informing the competent authorities about the situation and problems related to the implementation of projects, proposing measures for overcoming certain problems and implementing the established policy and enforcing legal regulations, other regulations and acts, in accordance with international and domestic standards, collecting, recording and processing of data according to the methodological and other instructions, monitoring execution of the plan and program of the project budget, translation of all documents on a foreign language and vice versa, and all other similar tasks in accordance with the requirements arising from the project documents; information and documentation activities include development of plans and work programs of PIT units and PMT units, development of methodologies and standards for the creation, development and maintenance of project data bank, data analysis and publication, editing of bulletins, publications and other informative materials on the project, and collecting, arranging and processing of data for the execution of certain information and documentation activities arising from the project, and Accounting and Material Affairs include: drafting appropriate acts for execution of the budget, financial plans and execution accounts of projects, conducting bookkeeping and accounting operations, calculation of salaries and fees for PIT units, and billing, planning and procurement of equipment, investment works and necessary raw materials for the overall project,consumable office supplies for PIT units and PMT unit and all other financial and material affairs in accordance with the requirements of the project documents.