Strategy

Strategic development pathways of the energy sector in Bosnia and Herzegovina

1. „Conventional“ development paradigm of energy sector of Bosnia and Herzegovina, which is mainly based on the fossil fuels, in the long term, is not sustainable from political, economic, environmental, social and climate aspects.
2. Transformation of the energy sector if systematically managed presents a development opportunity for Bosnia and Herzegovina economy and society.
3. Potential of renewable energy sources – RES (i.e. hydropower, wind, solar and biomass energy) in Bosnia and Herzegovina is sufficient for total decarbonization of the local electricity consumption by 2050 while retaining an adequate level of security of supply.
4. Improvement of energy efficiency in all segments of the energy sector supply chain as well as the deployment of energy management practice represent a key prerequisite for the efficient energy transition.
5. Electrification of transport and heating, providing electricity production is based on RES, represents a key driver of the decarbonization of these sectors at the same time contributing to a decrease of environmental pollution.
6. The flexibility of a power system is a precondition for the integration of variable renewable energy sources. Flexibility should be realized in production and demand as well as by developing and integrating a regional electricity market.
7. Digitalization of power production, transmission and distribution networks and demand in order to build Smart Grids represents a technological infrastructure of 21st century energy system, which should be systematicaly developed.
8. Sustainable energy transition planning should be preceded by the preparation of a strategy and programs for energy poverty mitigation
9. Just transition and economic restructuring of the coal mines regions are prerequisites for transformation of the thermal power sector.
10. Participation of all relevant stakeholders in realization of energy transition, especially of consumers/producers and citizens is request for democratizaton of the energy sector.

Development of energy sector which is based on the above stated strategic pathways requires above all the adoption of the concept of modern, sustainable energy system as a development paradigm. This primaraly requires conceptual change („reset“) of the mindset regarding sustainability of energy sector from environmental and climate aspects.