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Project Energy Transition in BiH – Opportunities and Challenges
About the Project

The project Energy Transition in BiH – Opportunities and Challenges was implemented from 01st July 2021 until 31st July 2022 with financial support of the Open Society Fund of BiH

Project status In progress
Project Objectives

The energy transition or decarbonisation of the energy sector represent a fundamental component of the sustainable development paradigm, which integrates energy and climate policies. Decarbonisation and digitalization are also the mainstay of the sustainable development infrastructure and the key components of the fourth industrial revolution, which is already underway in developed countries. By acceding to the Energy Community Treaty (in 2006), BiH undertook to harmonise its energy policies and related legislation with the EU policies and the EU acquis. This, among other things, implies liberalisation of the energy sector and its integration with the Single European Energy market. By signing the Sofia Declaration (in 2020), BiH expressed its willingness to join the Europe’s generational “Green Deal” Project, which aims to achieve total decarbonisation of the European economy by 2050. Although BiH is a signatory of the above documents, its energy transition process is still in its initial stage, and it also faces numerous challenges and obstacles, which cannot be addressed by any single institution, be it a government institution, industry sector representatives, or companies. Thus, the purpose of this project was to launch the dialogue between all relevant stakeholders in this process.

The Project’s Specific Objectives:

1. Mapping and comprehending existing barriers and challenges to the energy transition in BiH,

2. Identification of opportunities that the energy transition offers,

3. Drafting of six “policy papers” and proposing possible models and directions of action for the next key component of energy transition at this, initial, stage of the transition process:
• taxing CO2 emissions from the power sector in BiH
• integration of distributed energy resources
• markets in the power system – a precondition for economically efficient transition
• models of financing energy transition
• citizen energy (prosumers) and democratization of the power sector
• policies to reduce energy poverty

4. Raising the awareness of society, particularly of citizens and small commercial consumers, who will be most affected by the consequences of transition, and initiate a debate about selected energy transition topics through various dissemination activities

5. Providing information to decision makers and advocating policy proposals.

Key Results of the Project

As a result of the Project, a broader debate was launched in BiH about the process of transition, with participation of not only experts, non-governmental organisations, citizens, and businesses, but also of representatives of relevant institutions and regulators. Developed policy proposals (see Publication section) were disseminated at round tables and workshops and through public appearances both in the media and at conferences in BiH and in the region.

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Media on the Project