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Bosnia and Herzegovina Federation of Bosnia and Herzegovina

Bosnia and Herzegovina Federation of Bosnia and Herzegovina. SEE and EU 2020 Review of Current Situation and Future Developments. Energy – Planning - Demands.

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Bosnia and Herzegovina Federation of Bosnia and Herzegovina

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  1. Bosnia and HerzegovinaFederation of Bosnia and Herzegovina SEE and EU 2020 Review of Current Situation and Future Developments

  2. Energy – Planning - Demands • Planning the development of energy sector represents the greatest challenge faced by responsible institutions and individuals on all administrative and political levels, from global down to the local community. • A pre-requisite for understanding of the size of this challenge is in understanding of current status, a process that caused this situation as well as different scenarios of long-term trends in this area. • We are witnessing nowadays an enormous increase in the global demand for energy as a result of industrial development and population growth. The result of this is that the supply of energy is significantly less than the actual demand.

  3. Energy – Life - Environment • Energy plays a vital role in ensuring our quality of life. • We rely on it, to power our economy and provide comfortable homes, but at the same time our use of energy has local and global environmental implications. • Local air quality is an important concern for communities • Climate change is one of the biggest challenges we face globally.

  4. Energy – Politic – Regional Cooperation • Energy and politics are fundamentally linked. • Modern life—from production of goods, to means of travel and entertainment, to methods of waging war is heavily dependent on access to energy. • A country's ability to acquire and use energy supplies crucially determines the state of its economy, its national security, and the quality and sustainability of its environment. • Energy supply can serve as a basis for regional cooperation, but at the same time can serve as a source of conflict among energy seekers and between producers and consumers.

  5. SEE Regional Energy Strategy • As a part of the Integrated EU Strategy should provide a guidelines and objectives for a sustainable approach to energy across the SEE Region. • The Regional Energy Strategy is a challenge for all regional countries as partners to ensure a diverse and secure energy supply that is delivered in partnership with local communities and minimizes adverse environmental impacts. • The SEE Regional Energy Strategy/Objective should be the framework for decisions on the generation, supply and use of energy across the SEE Region and makes connections between energy and other key policy areas, in particular spatial planning, waste and transport, but also food and farming and housing.

  6. BIH Governance Structure • According to the BiH Constitution, BiH consists of the two Entities: - Federation of Bosnia and Herzegovina (FBiH) and - Republika Srpska (RS) • There is also the Brčko District of Bosnia and Herzegovina which is a single administrative unit of local self-government existing under the sovereignty of Bosnia and Herzegovina.

  7. BIH – EU – SEE EnCT • BiH became a potential candidate country for EU accession in June 2003. • The adjustment of BiH legislation with the EU legislation constitutes one of the challenges of BiH in the process of the European integration. BiH must accordingly adopt the whole EU legal framework known as "acquiscommunautaire". • Bosnia and Herzegovina (BiH) is a signatory of South East Energy Community Treaty from 2006 and for the electricity industry and for development of renewable energy in particular, the South East Europe Energy Community Treaty (SEE EnCT) effectively introduces a responsibility for Energy Community signatories to interpret EU Directives into national law and work toward establishing of an electricity market which can be integrated into regional and European electricity markets.

  8. BIH – EU2020 • In Bosnia and Herzegovina the situation with sustainable energy is not on a satisfactory level, although the shifts are felt • A lot of challenges await the country, that is 20-20-20 which requires reducing of greenhouse gas emissions by at least 20%, increase of energy efficiency by 20% and increased use of energy from renewable sources by 20% by 2020, which all members of the Energy Community strive for. • In that regard the regional cooperation is certainly the most important, and there would be no strong energy sector without it and no economic development. Cooperation is necessary due to improvements in energy efficiency and optimal use of renewable energy, attracting investments, and an increasing energy consumption and improving environmental protection.

  9. BIH – Energy sector – Regulatory structure • The regulatory structure of the electricity industry in Bosnia and Herzegovina reflects many features of the overall governance structure within the country. • There are State regulator and two Entity regulators in BiH. Transmission has been separated from distribution, generation and supply but this separation is also reflected in regulation. • In both Entities elected Parliaments adopt laws, appoint governments and respective ministries responsible for implementation. • There are more local government arrangements in the FBIH organized in Cantons and Municipalities.

  10. Federation of BIH – Power sector • The power system in FBiH consists of two vertically integrated power utilities responsible for generation, distribution and supply in FBiH and 18 Small Independent Power Producers. • The Total Installed Generation Capacity in FBiH is 2521 MW. Out of that Hydro Power plants participate with 1356 MW and Thermo Power Plants with 1165 MW. • Up to date 32 Small Hydro Power Plants have been constructed with total installed capacity of 34 MW. • Production of electrical energy in FBIH in 2010 was close to 10 TWh. Out of this amount 17% of electrical energy was exported.

  11. Production of electrical energy in FBIH in period 1991 - 2010

  12. Priority Efforts • Preparation of Legislation in accordance with EU directives • Enhancement of the base load and reducing of GHG emisions • Renewable energy sources and energy efficiency • Electricity market oppening • Unbundling of power companies • Harmonization of the legislation on the state level and Regional cooperation

  13. Preparation of Legislation in accordance with EU directives • New Legislation: • Electrical energy Law (Parliament procedure) • Renewable Energy Sources and Efficence Cogeneration Law (Government procedure) • Energy Efficiency Law (Final draft prepared) • Oil and oil derivates Law (Final draft under preparation) • Explorationa nad Production of Oil Law (under preparation) • Gas Law ( planned for january 2012 to be ready) • Energy Law (planned for january 2012 to be ready)

  14. Enhancement of the base load and reducing of GHG emisions • Existing TPP units (Tuzla and Kakanj) were built in period 1963 – 1983 • Due to the old technology these TPP units are source of significant polution • Replacement of the existing TPP units with new technology will result with enhancement of the base load in paralel with reducing of GHG emision

  15. Renewable energy sources and energy efficiency • FBiH offers huge potentials for future developments of various RES technologies • Only 40 % of hydro potentials have been utilized so far • Additional 2400 MW of hydro energy can be developed • Around 400 MW of wind energy immediatelycould be technically penetrated into the system • Many other opportunities for development of RES like solar, biomass, geothermal, etc are available. • Feed in Tariff (FIT) system of incentives for generators of electricity from renewable sources is in effect

  16. Electricity market oppening • There are on going efforts in preparation for electricity market opening in 2012. • 2012 to 2015 is transition period for electricity market opening • Electricity market opening is planned through stages as following: • 1.6.2012. large eligible consumers - 110 kV • 1.6.2013. medium eligible consumers - 35 kV • 1.6.2014. medium eligible consumers – 10 kV

  17. Unbundling of power companies – phase 1 Surplus energy Managment board Cheap energy Expensive energy Trading € € El. energy El. energy Production Distribution Investments - Joint venture Supply

  18. Harmonization of the legislation on the state level and Regional cooperation • New legislation in the energy sector has to be hamonized on the state level in acc with EU directives • Regional cooperation in the environment of the small market such as ours is certainly one of the basic prerequisites for a strong and secure energy sector as a basis for future economic development • Cooperation is also necessary due to improvements in energy efficiency and optimal use of renewable energy, attracting investments, and an increasing energy consumption and improving environmental protection

  19. The realization of these priority efforts aims toensure continuous and stabile supply of electricity but also to attract foreign investment and create conditions for sustainable development.

  20. Thank you for your attention

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