NEUM, Bosnia (Reuters) – Bosnia’s regions plan to invest a total of 3.6 billion Bosnian marka ($2 billion) in renewable energy projects over the next five years but will still keep coal-fired power plants online despite European Union objections, officials said on Wednesday.
The two regions that make up Bosnia – the Bosniak-Croat Federation and the Serb Republic – have pledged to follow the EU guidance and phase out production from fossil fuels by 2050 but are late with adjusting legislation and switching off thermo-power plants.
“We need to proceed with energy transition to secure energy stability in the socially acceptable way,” Federation Energy Minister Nermin Dzindic said at an energy conference in the Adriatic town of Neum.
Bosnia is the only Balkan country that exports electricity, with nearly all of it being produced from coal and hydro. Energy production accounts for 20% of the Balkan country’s national output.
Dzindic said the Federation planned to invest 1.5 billion marka in hydro, wind and solar projects over the next three years, adding about 600 megawatts (MW) produced from renewable sources. But most coal-fired power plants will continue to operate at least until 2035, he added.
“At this moment, Bosnia-Herzegovina is not in the situation to give up fossil fuels,” Dzindic said. His Serb Republic counterpart Petar Djokic echoed those words, saying he expected the EU to help with the process.
The Serb Republic also plans to add an additional 600 MW of clean energy in projects worth about 2.1 billion marka over the next five years, Djokic said.
The EU and its energy watchdog say that Bosnia must adopt state-level laws on electricity and gas to become eligible for the funding secured through its 9 billion euro ($9.9 billion)economic and investment plan for energy transition projects.
“We are facing a very serious task – a new investment cycle for Bosnia,” said Ognjen Markovic, an energy transition expert at the U.S. Agency for International Development (USAID).
“We need to build 2,000 MW of new capacities in the next 10 years, which is an enormous request demanding the mobilisation of the state and society,” Markovic said. “Without that, there will be no energy security.”
($1 = 0.9088 euros)
(Reporting by Daria Sito-Sucic; Editing by Paul Simao)
