Energy policy
In 2008, the country worked on a first draft of an Energy Strategy. However, neither the Federation of Bosnia and Herzegovina nor the Republic of Srpska have yet developed an Energy Strategy. Even though the development seems to be a slow process, at least the process is now in place.
A mid-term development strategy for the energy sector of Bosnia and Herzegovina has been implemented in 2004 for the period between 2004-2007.
The major goals of the energy sector reform are:
- standards and at lowest prices;
- join the international market through a single market of electric power and gas in BiH;
- enhance cost-effectiveness and rational use of energy sources and improve energy efficiency;
- implement liberalization and introduce competition and transparency;
- ensure protection of environment in accordance with national and international standards;
- protect interests of the system users;
- increase the use of renewable energy sources;
- meet the conditions of the European Energy Charter Agreement, as well as other international contracts and agreements.
Legislative background
Law on Application of Electricity Tariff System of the Federation of BiH
[OHR]
Decision by the High Representative on 31 December 2003
Law on Electricity in FBiH (“OG of FBiH” 41/02)
Law on Electricity in RS (“OG of RS” 66/02, 29/03)
These two laws are focusing on the development of an electricity market. The goals of these laws are:
- Electricity sector stimulation
- Stimulation for private domestic and foreign investments
- More reliable supply of electricity
- Inclusion in international electricity market via unitary electricity market in BiH
- Economical and rational use of electricity
- Energy efficiency
- Implementing the transparency and competition excluding monopoly effects
- Environmental protection
- Protect the interests of system users
- Renewable energy using.
State Energy Regulatory Commission SERC
According to the law on liberalization of the electricity market adopted in April 2002 (Law on Electricity Transmission, System Regulator and Operator in BiH) which was supplemented in both entities by corresponding law on electricity generation and distribution (Law on Electricity of the FBiH and RS), in future a state commission (SERC) is to take over regulatory tasks for the transmission grid, whereas generation, distribution and trading are to be the responsibility of the regulatory commissions of the individual areas (ERCFBiH and ERCRS) separately.
Decision about a Methodology for the Determination of Purchase Prices for Electricity from Renewable Sources with Installed Power up to 5 MW (“OG of FBiH” 32/2002, “OG of RS” 71/2003)
According to this decision the two federal power utility companies, “Elektroprivreda BiH”, “Elektroprivreda HZ Herceg-Bosna” and “Elektroprivreda Republika Srpska” have the obligation to buy electricity from renewable sources.
- Law on Waste Managing (“OG of FBiH” 33/03)
- Law on Air Protection (“OG of FBiH” 33/03)
- Law on Water Protection (“OG of FBiH” 33/03)
- Law on Nature Protection (“OG of FBiH” 33/03, “OG of RS” 50/02)
- Law on Fund for Environmental Protection in FBiH (“OG of FBiH” 33/03)
