As in other countries, energy reforms are overdue in Bosnia and Herzegovina as well so it becomes less dependent on coal and gas and the country has the potential to run completely on renewable energy, EU Special Representative, Johann Sattler, wrote on his blog.

“Some reforms are understandably sensitive and politically difficult, others should not be. Energy transformation is exactly that: common sense and long overdue,” Sattler wrote, noting that all over Europe and the rest of the world, the push to use clean, sustainable and renewable energy is accelerating.

“Russia’s illegal invasion of Ukraine has only deepened our determination. Rising energy prices are being felt across Europe and in BiH. At the same time, the price of renewable energy has become cheaper than that of energy generated through the burning of coal, oil or gas,” he wrote.

The EU Delegation Head stressed that “there is no doubt that Bosnia and Herzegovina needs to start decarbonizing – to become less dependent on coal and gas,” arguing that the reasons to do so are plenty and should convince any sceptics: “energy transition will provide affordable and secure energy, help fight climate change, ensure clean air, and boost BiH’s economic competitiveness in a rapidly changing world.”

He noted that it takes about four times more energy to produce one euro of GDP in BiH compared to the average in the EU. He also cited studies showing that emissions resulting from dirty and old-fashioned coal power plants in the Western Balkans are causing 12,000 premature deaths.

“Also, at the moment, the electricity companies in BiH can only keep consumer prices down because energy export is still profitable and the collateral environmental and health costs of burning coal are not factored into the price. This will change soon once the EU starts charging for the climate impact of any products that it imports. This will make any new coal-based power generation project (most importantly Tuzla 7) immediately obsolete and its huge cost can never be recovered,” he explained.

“Doing nothing will not only mean standstill. The rest of Europe will keep moving forward. Doing nothing will mean moving backwards,” he stressed.

But according to the EU official, the challenge is enormous but so is the potential.

“We often speak about Bosnia and Herzegovina’s untapped potential. This is true in so many ways, but it certainly applies to energy transition. Bosnia and Herzegovina’s geography and natural resources mean it could run completely on renewable energy generated from sun, water and wind. Better yet, it could continue to be a net exporter of clean energy. This is a concrete vision that all actors could unite around.”

What is needed to make this happen is “a sense of urgency”, the political will to unlock this potential and technical assistance and investments, and the international community is ready to offer technical assistance, multi-millions in grants and cheap loans, Sattler wrote, adding that the EU alone has put on the table €9 billion in grants and a possible further €20 billion from private sector investments to support the Green Agenda in the Western Balkans.

“But we cannot make up for the lack of will to enable this transition, including with much needed new laws and strategies,” Sattler stressed. “I recognize that decarbonization will start affecting the mining sector – an important element of local economies in parts of BiH. But we are also ready to help authorities in the transitioning of workers into new jobs and provide other forms of support. There are many lessons learnt from European countries like Poland and Slovakia that have been going through the transition themselves.”

What is needed in the short term is for authorities in Bosnia’s Federation (FBiH) entity to follow the example of the other semi-autonomous entity, Republika Srpska (RS), as well as the Brcko District, and adopt the necessary legislation.

He noted that a Law on Energy and a Law on Electricity have been prepared and can be adopted quickly. At the State level, authorities need to adopt the Electricity and Gas Law, and adopt the National Energy and Climate Plan, he added.

“Concrete steps, leading to concrete results that would also allow BiH to meet its commitments made in the Paris Agreement on Climate Change, Sofia Declaration on the Green Agenda and the Energy Community Treaty,” Sattler wrote.

He argued that these are also important steps in terms of European integration and that the EU remains committed to assisting BiH’s economic transition and to help prepare it for membership.
Sattler announced that he will be attending the Energy Summit in the southern town of Neum on Wednesday, arguing that this gathering represents a chance to discuss how BiH can “transition from being a country where toxic air from coal plants kills thousands prematurely, to a state taking full advantage of cheap, available, renewable energy.”

“The direction is obvious. The EU will support BiH on the challenging road ahead,” the EU Special Representative concluded.