Dr. Admir Softic, Assistant Minister of Energy Sector

Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina
November 2013

 Area 51,209.00 km2
 Population 3.5 million
 Capital Sarajevo (population 275,000)
 GDP 14.6 billion EUR (2015)
 GDP per capita 3.821 EUR (2015)
*Source: Agency for statistics BiH
GENERAL INFORMATION
Overview of Energy Sector in Bosnia and Herzegovina

INDIGENOUS ENERGY RESOURCES
Coal
 Brown coal, lignite and hard coal (total production in 2012 are10 milion
tons)
 Main energy source for electricity production (up to 95 % of coal is used in
the TPPs)
 Production of electricity in TPPs is about 60 % in 2015 (in future it will be
higher, due to puting in operation new power plant)
Hydro
 Big hydro potential - Utilization level is only 40 %
 Total gross production of electricity is about 38 % in 2015 (depends on
hydrological conditions)

POTENTIAL ENERGY RESOURCES - RES
Hydro:
 Study identified close to 300 MW of planned small hydro
 At present, there are about 25 SHPPs with a total capacity of 36 MW
 Utilizable SHPPs potential may be as high as 1000 MW
Wind:
 Currently there are no wind power plants
 Economic potential for developing approximately 900 MW
 18 locations marked as having good potential
Biomass:
 Most significant source is wood mass from forestry and wood waste from the
wood processing industry
 It is used mainly in rural and sub-urban areas as the primary source for heating
and cooking purposes

POTENTIAL ENERGY RESOURCES - RES
Solar:
 Total potential of solar energy is estimated at 70.5 milions GWh
 There are no solar and PV power plants
 Use of solar energy for hot water and heating in the residential sector is
insignificant
Geothermal:
 Geothermal potential of 9.25 MWt (for heating), and 90.12 MWt (for
heating and health centers)
 There are no geothermal power plants
 Temperature at the known locations is too low (< 90 0C)

IMPORTED ENERGY RESOURCES
Natural gas
 All natural gas is imported from Russian Federation in 2015 almost 214 Mcm
 Due to the high end user gas prices, there is a decrise of consumtion in
observed period 2008-2014
*Source: GAS PROMET AD Pale

OIL RAFINERY BROD
*Source: MIER RS
• imported 916.000 tones of crude oil in 2015
• Total production of petroleum products in 2015 are 821.000 tons
- production of petroleum products in 2014 and 2015 -

RESPONSIBLE INSTITUTIONS AND COMPANIES IN
ENERGY SECTOR
STATE LEVEL
ENTITY LEVEL
Regulatory Commission
for Electricity in
Federation of Bosnia and
Herzegovina
FERK
Regulatory Commission
for Energy of the
Republika Srpska
RERS
State Electricity
regulatory
Commission
SERC
TRANSCO
Independent
System Operator
ISO
Ministry of Foreign
Trade and Economic
Relations
MoFTER
Federal Ministry
of Energy,
Mining, and
Industry
MEMI
RS Ministry of
Industry, Energy,
and Mining
MIEM
Electricity and gas companies

POWER SYSTEM OF BOSNIA AND HERZEGOVINA

INSTALLED CAPACITIES
Hydro Power
Plants
Total installed
capacity (MW)
Trebinje I 180
Dubrovnik
(BiH+Hr.)
216
Čapljina 440
Rama 160
Jablanica 180
Grabovica 114
Salakovac 210
Mostar 72
Mostarsko blato 60
Jajce I 60
Jajce II 30
Bočac 110
Višegrad 315
Peć-Mlini 30
In Bosnia and Herzegovina there are 14 large HPPs with 2055 MW of total
installed capacity.
Great hydro potential on the River Drina, one of the biggest in Europe
HPP Salakovac

INSTALLED CAPACITIES
Thermal
Power Plants
Installed
Capacity
(MW)
Tuzla 715
G3 100
G4 200
G5 200
G6 215
Kakanj 450
G5 110
G6 110
G7 230
Gacko 300
Ugljevik 300
Stanari 300
In 5 large TPPs there are 2065 MW of total installed capacity;
TPP Stanari (300 MW) put into operation in September 2016;
Total cost was 400 million EUR, what is one of the biggest energy greenfield
investment in the region of the South East Europe for many decades.
TPP Stanari

ELECTRICITY GENERATON, CONSUMPTION AND
EXPORT IN 2015
 Total generation of electricity was
14,407 GWh
38%
60%
2%
HPPs TPPs Small and Industrial Power Plants
78,1%
2,8%
18,8%
0,2%
Distribution consumption
Transmission losses
Large consumers
Consumption of mines and pumping
• Consumption of electricity
was 12,605 GWh

IMPORT AND EXPORT OF ELECTRICITY
0
1000
2000
3000
4000
5000
6000
2010 2011 2012 2013 2014 2015
export
import
• Bosnia and Herzegovina is net exporter of electricity

Electricity prices- industrial consumers
*Source: EUROSTAT
Comparing with surrounding countries, BiH have the lowest industrial
electricity prices in the region (Band DC, KWh/EUR)

MARKET OPENING
Electricity
 All consumers (except households), as of 1 January 2008 was eligible
customers
 Transitional period until January 1, 2012 ( eligible customers are allowed to
keep the status or return to the status of non-eligible customer)
 1 January 2015- all consumers in BiH have a status of eligible customer
 Network related activities (transmission and distribution) – natural
monopoly
 Supply and generation activities – market activities, to be deregulated
 Little market trading due to low regulated price
 This area should be improved by new law on energy

ELECTRICITY MARKET STRUCTURE
Customers Customers Customers Customers
Export /
Transit (out)
EP HZHB
Distribution
EP BIH
Distribution
EP RS
Distribution Comp.
Brčko Dis.
Distribution
Transmission Company ISOHV Customers
Import /
Transit (in)
EP HZHB
Generation
EP BIH
Generation
EP RS
Generation Comp.
SERC
Entity
Regulator
Eligible
Customers
Elig.
Cust.
Tarrif
Cust.
Tarrif
Cust.
Tariff
Cust.
Elig.
Cust.
Elig.
Cust.

NATURAL GAS PIPELINE
Bosnia and Herzegovina
Zvornik – Sarajevo – Zenica
Length = 196,2 km
Diameter: 16” = 406.4 mm
Designed working pressure: 50 bar

COMPANIES IN GAS SECTOR
Border BiH-Srbija
Zvornik-stan
-distribution-
Industrial consumer
Main metering and
regulating station
Sarajevogas
Sarajevo
-distribution-
Sarajevo-gas
Lukavica
-distribution-
Metering station
Visoko gas
-distribution-
Gaspromet Pale, 24,2
km
-transmission-
Zvornik (Karakaj)
Sarajevo-gas Lukavica, 40 km
-transmission-
Kladanj
BH-Gas Sarajevo, 132 km
-transmission-
Sarajevo
Zenica
Idustrial consumers
BH-Gas Sarajevo,
-import-
Length of transmission pipeline: 196,2 km
Diameter of transmission pipeline: 406,4 mm
Designed capacity: 1 billion Sm3/year
Designed working pressure: 50 bar
Max. Tehnical capacity: 0,00105 Twh

LEGAL FRAMEWORK
State level:
 Law on Transmission of Electric Power, Regulator and System Operator of
Bosnia and Herzegovina (Official Gazette of BiH No.7/02, 13/03, 76/09, i
1/11)
 Law Establishing an Independent System Operator for the Transmission
System of Bosnia and Herzegovina (Official Gazette of BiH No. 35/04,
76/09)
 Law Establishing the Company for the Transmission of Electric Power in
Bosnia and Herzegovina (Official Gazette of BiH No.35/04)

LEGAL FRAMEWORK
Republika Srpska (entity level):
 Law on Energy (Official Gazette of RS No. 49/09)
 Law on Electricity (Offic. Gazette of RS No. 08/08;92/09;01/11)
 Gas Law (Official Gazette of RS No. 86/07, 121/12)
 Law on oil and oil derivates (Offic.Gaz. of RS No. 36/09;102/12)
 Law on Minning (Official Gazette of RS No. 107/05)
 Law on renewable energy sources and efficient cogeneration (Official
Gazette of RS, No. 39/13, 79/15),
 Law on Energy Efficiency (Official Gazette of RS No. 59/13)
 Decree on generation and consumption of energy from renewable energy
sources and cogeneration (Official Gazette of RS No. 28/11 and 39/11)

LEGAL FRAMEWORK
Federation of BiH (entity level) :
 Law on Electricity (Official Gazette of FBiH No. 41/02, 24/05, 66/13)
 Decree on the Organization and Regulation of Gas Sector Economy
(Official Gazette of FBiH No. 83/07)
 Law on use of renewable resources and co-generation (Official Gazette of
FBiH No. 70/13)
 Law on Minning (Official Gazette of FBiH No. 26/10)
 Law on Application of Tariff System (Official Gazette of FBiH No. 06/04)
 Law on Oil derivates (Official Gazette of FBiH No. 52/14)
 Law on surveys and exploration of oil (Official Gazette of FBiH No. 77/13)

Adopted documents, strategies
State level:
 Energy Sector Study in BiH, 2008
 National Emission Reduction Plan (NERP), 2015
 National Renewable Energy Action Plan (NREAP), 2016
Federation of BiH:
 Strategic Plan and Development Program for Energy Sector, 2009
 Action Plan for using Renewables, 2014
Republika Srpska
 Energy Development Strategy, 2012
 Renewable Energy Action Plan, 2014
 Energy Efficiency Action Plan, 2015

ENERGY COMMUNITY OBLIGATIONS
The Acquis on Electricity
 Commission Regulation 543/2013 on submission and publication of data in
electricity markets and amending Annex I to Regulation (EC) No 714/2009
(implementation until 24 December 2015)
 Directive 2005/89/EC concerning measures to safeguard security of electricity
supply and infrastructure investment (impl. until 31 December 2009)
3rd legislative package:
 Directive 2009/72/EC concerning common rules for the internal market in
electricity and repealing Directive 2003/54/EC (implement. until 1 January 2015)
 Regulation (EC) No 714/2009 on conditions for access to the network for cross-
border exchanges in electricity and repealing Regulation 1228/2003
(implementation until 1 Jan 2015)
 Regulation (EU) no 838/2010 on laying down guidelines relating to the inter-
transmission system operator compesation mechanism and common regulatory
approach to transmission charging (implementation until 1 January 2014)

The Acquis on Gas
 Directive 2004/67/EC – concerning measures to safeguard security of
natural gas supply (impl. prior to 31 Dec. 2009)
3rd legislative package:
 Directive 2009/73/EC concerning common rules for the internal market in
natural gas and repealing Directive 2003/55/EC (implementation until 1
January 2015)
 Regulation (EC) No 715/2009 on conditions for access to the natural gas
transmission networks and repealing Regulation 1775/2005
(implementation until 1 January 2015)
The Acquis on Oil
 Directive 2009/119/EC- concerning minimum stocks of crude oil and/or
petroleum products (implementation until 1 January 2023)
The Acquis on Infrastructure
 Regulation (EU) 347/2013 on Guidelines for trans-European energy
infrastructure (implementation until 1 January 2017)

The Acquis on Energy Statistics
 Regulation 431/2014 amending Regulation (EC) No 1099/2008 on energy
statistics, as regards the implementation of annual statistics on energy
consumption in households (implementation until 31 December 2016 )
 Decision on JODI Oil monthly submission (implementation deadline 31
December 2017)
Implementation deadline for all tree obligations was 31 December 2013
 Regulation 1099/2008/EC- concerning anuall and monthly energy statistics
 Directive 2008/92/EC- concerning aCommunity procedure to improve the
transparency of gas and electricity prices charged to industrial end-users
 Regulation 147/2013/EU- amending Regulation (EC) No 1099/2008 on energy
statistics
The Acquis on Competition
 Consists of Chapter IV (articles 18,19) and Annex III (articles 81, 82, 86, 87) of
the EC Treaty
 Shall be implemented insofar as trade of network energy between the
Contracting Parties

The Acquis on Renewables
 Directive 2009/28/EC – promotion of the use of energy from renewable sources
(implementation until 1 January 2014)
The Acquis on Energy Efficiency
 Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC
and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC
(implementation until 15 October 2017)
 Directive 2006/32/EC on energy end-use efficiency and energy services and
repealing Council Directive 93/76/EC(implement until 31 December 2011 )
 Directive 2010/30/EU on the indication by labelling and standard product
information of the consumption of energy and other resources by energy-
related products (implement until 31 December 2011 )
 Directive 2010/31/EU on the energy performance of buildings (implement until
30 September 2012)

The Acquis on Environment
 Directive 2001/80/EC - on the limitation of emissions of certain pollutants into
air from Large Combustion Plants (implement until 31 Dec 2017)
 Directive 2010/75/EU- on industrial emissions (impl. until 1 Jan 2018)
-only Chapter III, Annex V, Article 72(3)- (4) of Directive are applicable for EnC
-the deadline 2018 concerns new plants only
 Directive 1999/32/EC – concerning reduction in the Sulphur content of certain
liquid fuels (implement until 31 Dec 2011)
 Directive 85/337/EEC - assessment of the effects of certain public and private
projects on the environ. and Amendments (impl until 1 July 2006)
 Directive 79/409/EEC, Article 4(2) – conservation of wild birds (impl. until 1
July 2006)

INTERNATIONAL OBLIGATIONS
 Stabilization and Association Agreement (SAA) - entered into force on 01
July 2008
 Article 107: “Co – operation shall focus on priority areas related to the
Community acquis in the field of energy, including, as appropriate,
nuclear safety aspects. It will be based on the signed regional Energy
Community Treaty and will develop with a view to the gradual
integration of Bosnia and Herzegovina into Europe’s energy markets.”
 Energy Charter Treaty - Energy Charter Protocol on Energy Efficiency and
Related Environmental Aspects (PEEREA)
 Kyoto Protocol
 COP 21
 Western Balkan Initiative (Berlin process)
 Paris Agreement

HIGH PRIORITY ACTIONS
Urgent need for adoptions such as:
 Decision on Quality of Liquid Petroleum Products
 Energy Efficiency Action Plan
 New energy laws in order to answer on already adopted Energy
Community obligations
Be prepared for comming challenges such as adopting of new EU
legislation

THANK YOU FOR YOUR
ATTENTION
Dr. Admir Softic
Assistant Minister, Sector of Energy
Admir.softic@mvteo.gov.ba

Dr. Admir Softic, Assistant Minister of Energy Sector

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