Energy policy
The Strategic Plan and Program of the Energy Sector Development of FBiH
On March 2009 the Federal Ministry of Energy, Mining and Industry (FMEMI) issued the Strategic Plan and Program of the Energy Sector Development of Federation of BiH (SPP). The SPP document is made on the basis of the item 6 of the Conclusions of the Parliament of FBiH, House of Representatives from 25th July 2007 and People House from 8th November 2007. By the decision of the Minister, an Expert Group (EG) had been appointed for making the SPP.
The aim of making the document is, in the absence of the Strategy of development of energy sector BiH, to intensify activities on the reforms of the energy sector in the FBiH, secure conceptual propositions for the modernization of the already existing and the construction of new, modern energy facilities and infrastructure, with the high degree of the energy efficiency and sustainable development. The terms of references define: purpose, aim, scope and content, methodology of design, organization and dynamic plan of realization and expected results.
The purpose of developing the SPP was to make a professional analysis of the existing situation, define the requirements and possibilities of the development of energy sector (ES) in FBiH and in each subsector in whole taking into account energy sector development intensity in BiH, region, Europe and the world. The aim is unblock of investing in this sector in FBiH and BiH, in general, and achieving the modern and sustainable development of ES in FBiH.
The document contains the priority activities (until year 2010, see below), activities of the mid-term development (until year 2020, see below), and indicate the projection of the development in the third decade of this century (until year 2030). The SPP should have practical purpose, with the elements of the plan and program, without generally wider considerations.
Priority activities until year 2010:
The concept of development and organizational aspects of the energy sector in FBiH, the developing of the harmonized legislation and regulation, activities, bearers, deadlines;
Evaluation of investments, basic technical-economical indicators of investments, including aspects of energy efficiency, environmental aspect and the lifetime of the facility; Preliminary realization plan for projecting, preparation works and realization of the plan and program.
Activities of the development of energy sector FB&H until year 2020
Description of activities, evaluation of investments, basic technical-economical indicators of profitability of investments, etc. Preliminary dynamic realization plan for projecting, preparation works for construction, putting into operation and usage of the facility, including environmental aspects in all phases of realization.
[Government of the Federation of Bosnia and Herzegovina]
Energy Development Strategy of the Republic of Srpska – Initial Report – Draft
On September 2009 the Government of RS issued a draft of Energy Development Strategy of the Republic of Srpska. For its preparation the Government has appointed the Economics Institute from Banja Luka and the Energy Institute Hrvoje Pozar from Zagreb. The essential elements of the Initial Report are: the proposal of assumptions for three scenarios, the preliminary results of final energy consumption for three scenarios, and a proposal for quantification of objectives and criteria of the RS energy development for the three scenarios.
The final report of the Strategy will show the following plan of the RS energy development by 2030:
- The development plan will incorporate a description of all assumptions, analysis and modeling results of the energy development by 2030. It provides a basis for drafting the strategic document,
- A Strategy for the RS energy sector; the main objective of the project task is the sublimation of the Development Plan and the energy sector development shall include all necessary elements of a strategic document (mission, vision, objectives, measures).
The general objectives of energy development for the RS are as follows:
- long-term security of supply of different forms of energy,
- ensuring an adequate degree of independence on imported energy and exposure to world market prices for energy use of domestic energy sources,
- high-quality energy supply at reasonable prices adjusted to the economic development and standard of the citizens,
- the optimal use of domestic energy sources to achieve economic and social stability (determining prirority routes to energy development),
- energy management in an environmentally acceptable manner and conduct of the positive environmental policies,
- use of modern technologies for energy production and consumption, increase energy efficiency at all levels of the energy sector, involving the public in making decisions about the construction of energy facilities,
- education of population on energy uses and technological development,
- protection of consumer interests and users of energy systems,
- interiors of the legal framework of the energy sector (and other parts that are in direct contact with energy - such as environmental protection) in accordance with internationally accepted treaties, regulations and standards,
- energy sector restruction with the aim of increasing the productivity of the sector, creating an environment conducive to enterprise development and energy markets, regulation of public service activity,
- increase investment,
- regional connections.
Legislative background
Energy Sector
Bosnia and Herzegovina
Act on Transmission, Regulator and Electricity System Operator (“OG of BiH” 07/02, 13/03)
This Act regulates establishment and work of a State Electricity Regulatory Commission, an Independent System Operator and a company for transmission of electric energy, and defines the functions and authorities of these bodies.
The objective of this Act is to lay the basis for unlimited and free trade and a continuous supply of electricity at defined quality standards for the enjoyment of the citizens of BiH . The Act is guided by prevailing international practices and applicable Directives of the European Union. The Act is intended to facilitate and advance the creation of an electric energy market in BiHand a regional electric market.
State Energy Regulatory Commission SERC
The State Electricity Regulatory Commission (SERC) is an independent and non-profitable institution of BIH, which acts in accordance with the principles of objectivity, transparency and equality, and has jurisdiction over the transmission of electricity, transmission system operation and international trade in electricity. The SERC was established by the Parliament of BiH by adopting the Act on Transmission, Regulator and Electricity System Operator, and appointing the Commissioners.
The SERC’s jurisdiction includes:
- issuance, modification, suspension, revocation, and monitoring of and enforcing compliance with licenses within its jurisdiction;
- regulating, approving and monitoring tariffs and tariff methodologies for transmission services, ancillary services and operation of the Independent System Operator (ISO), as well as supplying electricity customers in Brčko District of BiH;
- issuance of rules and regulations within its competency, including revision and approval of market rules and grid codes, and terms and conditions for connection and access to network;
- establishment, monitoring and enforcement of rules related to fair and non-discriminatory third party access to the transmission network;
monitoring and enforcement of conditions related to inter¬national trade in electricity, in particular ensuring that international technical requirements are met and adhered to; - establishing, monitoring and enforcing quality standards for electricity transmission and ancillary services;
- coordinating and approving investment plans of the company for transmission of electricity, including the plans related to the transmission network and the quality of electricity transmission;
- monitoring of the efficiency of mechanisms and methods securing the system balance between demand and supply of electricity;
- consumer protection ensuring: fair and non-discriminatory treatment, high-quality services, competition and the prevention of anti-competitive activity;
- resolution of disputes among system users, in accordance with regulatory powers and applicable State laws;
- creation and maintenance of competitive markets when practicable, and prevention of any anti-competitive conduct;
- approving mechanisms for dealing with congestions of the electricity transmission system capacities;
- regulation of standards of service, codes of conduct and accounting requirements for licensees;
- issuance of annual reports and other public information about the SERC.
Law on Establishing an Independent System Operator for the Transmission System of BiH („OG of BiH“ 35/04)
This Law establishes a non-profit Independent System Operator to direct the operation of the transmission system in BiHthe “Independent System Operator of
Bosnia and Herzegovina” (referred to hereafter as “the ISO”), and defines its functions, powers, governance and ownership. The ISO shall perform its activities on the entire territory ofBiH.
The objective of the Law is to establish an independent system operator and ensure a continuous supply of electricity at defined quality standards for the enjoyment of the citizens ofBiH. The Law is intended to facilitate the creation of a competitive electric energy market in BiHand its integration in regional energy markets and regional energy development activities. The Law is based on existing international practices and applicable Directives of the European Union (and their implementation in EU Member States).
Law on Establishing the Company for the Transmission of Electric Power in BiH („OG of BiH“ 35/04)
This Law establishes a joint stock company for the transmission of electric energy,
“Elektroprenos Bosne i Hercegovine” (“Company”), and defines its functions, powers, governance, and ownership. The Company shall perform its activities on the entire territory ofBiH.
The objective of the Law is to establish a single transmission company and to ensure a continuous supply of electricity at defined quality standards for the enjoyment of the citizens ofBiH. The Law is intended to facilitate the creation of an electric energy market in BiHand its integration into regional energy markets and regional energy development activities. The Law is based on existing international practices and applicable Directives of the European Union (and their implementation in European Union Member States.)
[SERC]
Federation of BIH
Electricity Law (“OG of FBiH” 41/02)
Law on the amendments to the law on electricity (“OG of FBiH” 61/09)
The Law on Amendments and Modifications of Electricity Law (“OG of FBiH” 38/05)
The aims 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.
Law on Application of Tariff System (“OG of FBiH” 06/04)
Regulation on using renewable energy resources and cogeneration (“OG of FBiH” 36/2010)
This Regulation lays down: how to use renewable energy and cogeneration facilities (hereinafter referred to RES), a group of plants, the minimum share of electricity produced from plants using RES in total energy consumption, encouraging the production of electricity from RES, testing the potential of RES, establishing the Register of RES projects, RES plant construction, purchase and compensation, RES plants access on the grid, the certification of origin of electricity produced from RES, the establishment of institutional structures for the operationalization of the system for supporting the electricity production from RES, as well as other issues of importance for RES utilization .
The use of RES is of general interest for the FBiH.The aim of this Regulation is to stimulate greater production and consumption of electricity from RES in the internal electricity market and the development of regulatory and technical infrastructure for the RES, particularly in terms of:
- removing barriers to increase use of RES, including administrative barriers,
- reduce the impact of using fossil fuels on the environment
- approaching the Kyoto targets,
- encouraging, introducing, applying and developing new equipment and technologies, and the domestic economy as a whole,
- job creation and entrepreneurship development in the energy sector,
- long-term energy security, efficient use of energy, including energy efficiency and savings
- quality of waste disposal.
Statut of the electricity regulatory commission of the Federation of Bosnia and Herzegovina (“OG of FBiH” 13/04)
This Statut is defining the status, title, headquarters, competencies and activities of the Regulatory Commission for Electricity in Federation of Bosnia and Herzegovina as FERC.
FERC competencies are:
- supervision and regulation of interface between generation, distribution and electricity customers, including power traders,
- development of methodology and criteria for defining supply price for non-eligible electricity customers,
- defining tariffs for distribution system customers and tariffs for non-eligible customers
- issuing and termination of licenses for generation, distribution and trade with the electricity
- issuing primary license for construction and license for using sector utilities except utilities for power transmission,
- defining general conditions for power supply.
The Republic of Srpska
Law on Energy (“OB of RS” 49/09)
The aim of this law is to regulate with other laws the performance of energy activities to ensure the legal requirements for safe and reliable energy supply by the principle of competitive energy markets and sustainable development, with efficient use of energy and environmental protection.
Law on Electricity (“OB of RS” 34/09, 92/09)
The aim of this law is to establish the conditions necessary for a rational and economical development of production and distribution of electricity in the RS, to create conditions for life and work and to promote companies to provide public services for the smooth supply of electricity consumers.
Law on Gas („OB of RS“ 86/07)
This law provides the method of organization, regulation and functioning of the natural gas sector, terms and conditions for regular, proper and reliable supply of customers with natural gas, the method of generation, transport, distribution, supply and storage of the natural gas on the RS territory..
The aim of this law is to determine criteria and procedures which are applicable for issuance of authorizations to perform the activities related to the natural gas sector, provision of the legal framework for the companies, offering public services for smooth supply of customers with natural gas and monitoring of implementation of these activities.Provisions of this Law shall be applicable for the liquid oil gas (LOG), biogas and gas from biomass or other kinds of gases provided that those gases may be technically and safely transported through the natural gas network.
Law on Oil and Oil Products („OB of RS“ 36/09)
This law regulates the activities in the field of oil and oil products their regulation, the function of oil and its products, requirements for quality and safe supply of buyers of oil and its products, forming and maintenance of operational and required oil reserves.
Regulatory Commission for Energy of the RS (Regulatory Commission or shortly RERS) was established in order to regulate monopolistic behaviour and ensuring transparent and non-discrimatory positions of all participants in the electricity market, gas market and oil and oil derivatives market in the RS, in accordance with the Law on Electricity ("OG of RS" 8/08, 34/09 and 92/09), Law on Gas („OG of RS“ 86/07), Law on Oil and Oil Products („OG of RS“ 36/09).
Decision about a Methodology for the Determination of Purchase Prices for Electricity from Renewable Sources with Installed Power up to 5 MW (“OB of RS” 71/2003)
On September 2010 the Regulatory Commission (RERS) has suspended the proceedings of the Ordinance of qualified power producer and stimulate the production of electricity from renewable sources and combined heat and power and decision-making procedure on the level premium and guaranteed purchase prices for electricity generated by qualified and efficient cogeneration power plants, although such ordinances has been already drafted.
Brčko District Government
Law on Electricity (“OB of Brčko District”, 36/04, 28/07, 61/10)
Law on Tariff System for Electricity Sale (“OB of Brčko District”, 37/04, 28/07)
Environment Sector
Federation of BIH
- 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)
- Law on Fund for Environmental Protection (“OG of FBiH” 33/03)
Environment Protection Act (“OG of FBiH” 33/03) The Environment Protection Strategy is in the stage of drafting. This Strategy is regulated by the Environmental Protection Act, and for the preparation of its proposals is the competent Federal Ministry of Environment and Tourism. The strategy has been adopted for a period of ten years (2008-2018). For its preparation the Ministry appointed Bosna-S Oil Service Company, Hydro-Engineering Institute and IPSA Institute, all from Sarajevo.
The Republic of Srpska
- Law on Waste Managing (“OB of RS” 53/02)
- Law on Air Protection (“OB of RS” 53/02)
- Law on Nature Protection (“OB of RS” 50/02)
- Law on Fund for Environmental Protection (“OB of RS” 51/02, 53/07)
- Environment Protection Act (“OB of RS” 28/07)
Brčko District
- Law on Nature Protection (“OB of Brčko District” 24/04, 1/05, 19/07, 9/09)
- Law on Water Protection (“OB of Brčko District” 25/04, 1/05, 19/07)
- Law on Air Protection (“OB of Brčko District” 25/04, 1/05, 19/07, 9/09)
- Environment Protection Act (“OB of Brčko District” 25/04, 1/05, 19/07, 9/09)
