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• |Bosnia & Herzegovina
• |Energy Sources

Structure of power sector 2009

[SERC]

District heating

In Sarajevo, various heat energy sources are available: residential buildings are usually connected to district heating systems and heating energy is produced from gas, heavy fuel oil, coal, etc. Public companies BH Gas (importer) and SarajevoGas (local distributor) operate a gas system but, with exception of Sarajevo, gas is not available as energy source for heating, and in most cases there is use of fuel wood for heating (in individual households) or heavy fuel oil (in large systems). Large urban centers, especially those in the vicinity of major industrial installations or thermal power plants use district heating at significant scale(Zenica, Tuzla, …). Other households use coal, wood or fuel oil for heating and some use electricity as an additional heating source. In most cases, if district heating is not available and given a low average income levels of the population, the least expensive fuel is used for heating, which is wood. Commercial facilities, schools, hospitals and similar institutions usually have their own heat energy capacities (unless connected to district heating systems).In Sarajevo Canton in most cases they use gas as fuel, and heavy fuel oil or coal in other parts of the region.In most of Republic of Srpska the available heating fuels are mainly solid fuels and fuel oil and electricity. A certain number of urban households use district heating, but district heating public service is available only in urban areas or in some blocks of the urban centers.Population of Herzegovina mainly uses electricity or coal/wood for heating. A small number of households receive heating energy from cogeneration plants or use some other sources (gas bottles, etc). Despite electricity production surpluses, the problems in electricity supply persist, and power shutdowns are rather frequent in this region. It should be stressed that solar energy is not used for heating, although this area has approximately 230 insolation days per annum. Poverty and low standard of living and purchasing power are the main reasons that solar energy is not used. In the pre-war period in some parts of large towns there were coal- and fuel oil-fired power stations (most of them in Mostar). These plants were destroyed during the war and in this moment the considerations are given to invest in their renovation.The existing heating plants and appropriate equipment, especially boiler units are between 20 and 25 years old, i.e., that they are at the expiry of their lifetime, which results in their low efficiency. Given the fact that most of district heating companies operate with commercial losses there is no way to invest in maintenance and especially there is no possibility to invest in further development.

[Energy Sector Study in BIH - Final Report]

- Red circles show district heating systems.
- Green circles highlight areas where coal is mined.

Significant explorations of oil and gas reserves were carried out since the 1960s until the early 1990s by the Sarajevo-based company Energoinvest, Zagreb-based INA-Naftaplin, foreign companies such as AMOCO, EXLOG, GECO, ECL, and others. Extensive geochemical, geomagnetic, geo-electric explorations were conducted as well as reflective seismic studies and magnetic telluric probing. Based on the current level of explorations it is considered that there are reserves estimated at 50 million tons of crude oil in four priority areas:

• The area south of Bosanski Šamac with estimated reserves of 9.2 million tons;
• The area southwest of Orašje with estimated reserves of 6.1-15.5 million tons;
• The River Tinja area in the Tuzla region with estimated reserves of 14.3 million tons;
• The area around Lopar of around 21 square km with estimated reserves of 11.9 million tons.

Energy Sector Study in BIH - Final Report

Natural gas in Bosnia and Herzegovina in 2009

Bosnia and Herzegovina does not have its own sources of natural gas so its supply is exclusively based on import. For the time being, it comes only from one source and uses only one transport direction, which is Beregovo - Horgos - Zvornik. All of the natural gas for BiH is imported from the Russian Federation. There is a contract with the Gasexport for the delivery of gas, but it is not of a long-term nature due to the unsettled war debt with this Russian partner.

Gas is transported along the gas pipeline systems of Ukraine, Hungary and Serbia.
According to the available information BiH has long-term contracts for the transport of natural gas concluded with foreign partners, as follows:

• With MOL for transport of natural gas through Hungary for the amounts of 600 MNm3/year until 2018
• With Srbijagas for transport of natural gas through Serbia for the amounts of 600 MNm3/year until 2017.

Energy Sector Study in BIH - Final Report

Coal and lignite

Bosnia and Herzegovina is rich in coal deposits. Brown coal deposits occur in various parts of BiH. There are mainly 1-3 economically viable coal seams within each deposit. They are disturbed tectonically, intercepted with dirt bands and they are of uneven quality. On the other hand, lignite deposits occur in river (Gacko, Bugojno, Livno, Duvno, and others) and marine basins (Kreka and Stanari). The latter are situated in Northern Bosnia, closer to Panonian basin.

Total geological reserves of coal in BiH are estimated at 5,763 billion tons, of which balance reserves account for 2,625 billion tons; 1,437 billion tons of lignite and 1,187 billion tones of brown coal. This clearly indicates that significant funding is required for further explorations of potential reserves and in order to convert them into balance reserves. Balance reserves account for only 45.5 %, out-of-balance 10.8 %, and potential 43.7 %, thus showing a low degree of exploration.

Brown coal deposits are of relatively good quality, with an average heating value of 16,750 kJ/kg (clear coal). However, it contains significant percentage of sulphur (2-6%), ash (10-45%) and moisture (10-25 %), thus narrowing the scope of usage, especially when it concerns a long transportation distances and environmental issues. If new power plants fuelled by this coal are to be built then desulphuring plants will have to be installed as well.
Lignite is of high quality, pure, with heating value averaging between 7,500-12,600 kJ/kg, containing 0.2 to 1.0 % of sulphur, ash 5-9 %, and moisture 35-53 %. Such a quality determines a broad range of application, while production costs enable transport to longer distances.

The major reserves of brown coal are situated in the following basins: Central Bosnia (deposits: Kakanj, Zenica, Breza, Bila), Banovi?i (Seona, Central Basin, durnevik), Ugljevik (Bogutovo Selo, Ugljevik-Istok, Glinje, Mezgraja, Tobut-Peljave), Miljevina and Kamengrad, while lignite occurs in basins: Kreka, Gacko, Stanari, Bugojno, Livno and Duvno. These basins present future potentials able to meet thermal energy requirements.

All other basins (Mostar, Miljevina, Tušnica, Kotor-Varoš, Lješljani, Teslic, Žepce-Šeher, Mesii, Drvar, Cazin, and others) possess only 5 % of balance reserves, i.e. participate with only 6.3 % in total reserves, therefore they are of low significance as for construction of new power plant units.

Wind Energy

At the moment wind energy is not used in Bosnia and Herzegovina,  no commercial wind power plant has been constructed yet. Taking into account technological development and the global trend in wind potential usage for energy production, it is likely that till 2015 wind power plants will be constructed and integrated in the power system.
The capacities will depend mainly on wind (and other renewable) energy policies. In other words, the increase of wind power will depend on the willingness and capability to prepare and apply support mechanisms, to establish needed energy entities, to consolidate institutions and to launch real entrepreneurship activities in the energy sector.

In a preliminary study carried out on behalf of the GTZ (Deutsche Gesselschaft für Technische Zusammenarbeit) it was established that there is an economic potential of approximately 600 MW that could be developed by 2010, on the assumption that an appropriate incentive system to build wind power installations is set up. Sufficiently suitable geographical locations appear to be available. For example, there are promising wind values shown by measurements taken before the war for the region of Trebinje through Mostar to Bugojno, and more up-to-date measurements from meteorological stations and airports which reveal large areas of the country with wind velocities of over 10 m/s at a height of 10 m on 150 days in the year.

The first systematic wind measurement project in the region of Mostar was planned for 2002, but due to a lack of funding it was canceled. The supply company JP “Eleketroprivreda HZ Herceg-Bosna” does remain interested, however, in making progress with such schemes.

[ “Energy-policy Framework Conditions for Electricity Markets and Renewable Energies, 21 country analysis”, GTZ, June 2004 ]

Biomass

Apart from the traditional use of firewood and the recycling of wood waste in the wood-processing industry, there is no reliable data on the exploitation of biomass in Bosnia and Herzegovina. If studies have been carried out in the Federation of Bosnia and Herzegovina at the canton level at all, the results are not accessible. It can be assumed, however, and there is considerable potential for the use of biomass for energy generation in the forestry sector (roughly 50% of the land area of Bosnia and Herzegovina is wooded) and in agriculture.

Utilization of residual wood

According to a study conducted by Innotech HT GmbH, Berlin, in 2003 on behalf of the GTZ, there is an unexploited potential of approx. 1 million m³/yr of residual wood, wood waste etc. which could be used to provide heat to 130,000 residences or 300,000 inhabitants.

One field where wood is already used in Bosnia and Herzegovina is where wood waste is converted into electrical energy in steam power plants, such as in the state-owned Krivaja factory in Zavidovici, manufacturing furniture and timber houses. With a maximum thermal output of 15 MW, peak electricity outputs of 4.5 MW are generated for the factory’s on-site power needs. There are also plans with the local authority for a group heating scheme in locality, but because of a lack of funding it has so far not been possible to put these into practice.

Use of landfill gas

Near Sarajevo a landfill gas plant with a 350 kW generator has been built with Austrian support; its capacity is due to be doubled in the near future. The electricity is fed into the urban grid. The remuneration for electricity generated from biomass, as set by the government decree of 2002, is low in the Federation of Bosnia and Herzegovina at 3.81 € cents/kWh.

[ “Energy-policy Framework Conditions for Electricity Markets and Renewable Energies, 21 country analysis”, GTZ, June 2004 ]

A Bosnian Company “Narodno Grijanje” (located in Ilidza, suburb of Sarajevo), which core-business is producing eco-heat boilers, accumulation tanks, and solar collectors under Swedish license. This company has implemented several ecology oriented projects incl. the most interesting such as biomass-fueled boiler and 30 solar collectors in one building located in Zenica (http://www.narodnogrijanje.com/).

Solar Energy

With regard to solar irradiation, Bosnia and Herzegovina can be counted among the more favorable locations in Europe with solar irradiation figures of 1 240 kWh/m²/yr in the north of the country and up to 1 600 kWh/m²/yr in the south. Despite this, the use of solar energy can only be described as insignificant.

The thermal exploitation of solar energy with flat-plate collectors is also practiced to only a limited extent.

One of the first photovoltaic installations is being fitted on the roof of an orphanage in Trebinje with assistance from the GTZ. The installation will be used for training purposes for the local electrical trade. In view of the relatively high cost involved, the introduction of photovoltaic on the market beyond very small-scale consumers far from the utility grid is dependent on promotion programs and international projects.

[ “Energy-policy Framework Conditions for Electricity Markets and Renewable Energies, 21 country analysis”, GTZ, June 2004 ]

Geothermal Energy

According to available studies, Bosnia and Herzegovina has a geothermal potential of 33 MWth. It must be said, though, that the temperature at three known locations in Bosanski Samac (85ºC), Kakanj (54ºC), and Sarajevo (58ºC) is too low for electricity generation, which is why the reserves are currently only under consideration for thermal exploitation. Before the civil war there was an initial pilot project for a 1 MW plant near Sarajevo, which was designed with a volume flow of 240 l/s with water at a temperature of 58ºC. The project was not completed, however.

Current activities relating to geothermal energy continue to be limited to exploitation for thermal use. For example, a group of buildings in Ilidza (a suburb of Sarajevo) is to be heated with geothermal energy. If higher temperatures are discovered in the course of the exploratory drilling, there are also plans for partial conversion to electrical energy. The project is being handled by a German-Bosnian company with the participation of EAN-Nord GmbH from New Brandenburg, Germany. At present the company is attempting to obtain promotional funds for further exploratory drilling.

[ “Energy-policy Framework Conditions for Electricity Markets and Renewable Energies, 21 country analysis”, GTZ, June 2004 ]

Hydroelectric Energy - Existing Capacity, Reconstruction and Development

The theoretical potential of hydropower in Bosnia and Herzegovina is stated as being 8000 MW, the technical potential 6800 MW and the economic potential 5600 MW. With an installed capacity of 2052 MW (53% of electricity generation), hydropower is highly significant in Bosnia and Herzegovina, although its potential is far from being fully exploited yet (37% of economic potential). The majority of the installations are more than 30 yrs old. Five existing hydro plants (total 1060 MW) are part of multi-purpose developments. There are 13 hydro plants with a capacity greater than 10 MW.

JP “Elektroprivreda BiH” has been received funds from the US Government to study completion of the 126 MW Konjic plants, now under construction, which will undergo some revisions. A further 9 MW of hydro capacity is also planned. An 87 metres high dam is under construction for the projects. It is an arch dam, with a concrete volume of 103,000 m³, and will impound a reservoir with a volume of 81,500,000 m³. The project is not yet finished.

JP “Elektroprivreda HZ Herceg-Bosna” planned to complete two relatively small hydropower plants at Pec Mlini (30 MW) and Mostarsko Blato (60 MW) by the end of 2004.

“Elektroprivreda Republika Srpska” has confirmed its development strategy, giving priority to the construction of five hydro plants. The company is to move ahead with the developments of the 450 MW Buk Bijela and Srbinje (Foca) hydro plants at the total costs of $ 259 millions, and commissioning are planned for 2008. These projects are to be followed by two further hydro plants at Krupa and Banja Luka, due for completion in 2010.

In longer term, this company envisages the construction of a 160 MW hydro station at Dabar. Unit 4 at the 6x25 MW Jablanica hydro plants was decommissioned recently and upgrading work took place. This project has increased the capacity of unit 4 to 30 MW and should produce an extra 6 GWh/yr on average. Work on unit 5 at the Jablanica plant is expected to begin this year.

The 58 MW Unit 7 at the 308 MW Perucica hydro station resumed operation in October 1999, after repairs to the electrical equipment were completed a month ahead of schedule. Perucica generated 603 GWh during the first nine months of 1999. The following dams and hydro projects are at the preliminary design stage:

• Glavaticevo
• Ustoklina
• Vranduk
• Buk Bijela
• Dabar
• Vrpolje
• Unac
• Tihavina
• Mostarsko Blato

Small Hydro

Bosnia and Herzegovina has a small hydro power potential of 2500 GWh/yr. There are ten small, mini or micro hydro plants in operation, with a total capacity of 31 MW. Another two plants are under construction (1.8 MW) and 20 more are planned, totalling another 28 MW. Proposed plans include the installation of ten small hydro plants every year, with an average capacity of 1.5 MW each. In addition, a study by the Federation of Bosnia and Herzegovina lists a further 42 locations for small-scale hydropower plants with a total capacity of 51 MW which could be built an existing weirs.

Foreign investors in the hydropower sector

Currently there are two projects funded by foreign investors (the Swiss company Geva and the Austrian company Small Hydropower Tirol), which envisage the construction of one and four small hydropower plants respectively in Central Bosnia, with a total capacity of 5.4 MW. Both investors have concluded contracts with JP “Elektroprivreda BiH” to feed electricity into grid for a period of 20 years. Small Hydropower Tirol has also entered into a DBOT (Design-Build-Operate-Transfer) agreement with the Central Bosnian canton of Srednjebosanski according to which the plant is to pass into the owners-hip of the canton after 20 years.

There is presently an ongoing initative launched by Austria to invest € 350 million in up to five hydropower plants in Bosnia and Herzegovina with the intention of using these to achieve part of the CO2 reduction targets for the Kyoto Protocol. To that end, however, Bosnia and Herzegovina would first to ratify the Protocol.

[ “Energy-policy Framework Conditions for Electricity Markets and Renewable Energies, 21 country analysis”, GTZ, June 2004, EBRD ]

Support Mechanisms and feed-in conditions for electricity from renewable energy sources

According to the “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) 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.

The determination of the purchase price level of electric energy from renewable sources with installed power up to 5 MW will be done by application of corrective coefficients on the amount of the current tariff item for active energy, higher seasonal and higher daily, for consumption category on 10 (20) kV voltage from the Tariff items for the sale of electric energy on the territory of the Bosnia and Herzegovina, which is now 4.95 € cents/kWh. The relative correction coefficient amounts are established for:

• Small hydropower plants 0.80 (3.96 € cents/kWh)
• Power plants on biogas from the waste area and biomass 0.77 (3.81 € cents/kWh)
• Power plants on wind and geothermal sources 1.00 (4.95 € cents/kWh)
• Power plants on solar energy 1.10 (5.44 € cents/kWh)