BiH faces significant problems in its energy transition

Over the next three to four years, Bosnia and Herzegovina (BiH) will witness the construction of solar power plants with a capacity of 1,500 MW and wind farms with a capacity of 700 MW, said Edhem Bicakcic, President of the Regional Council of southeastern Europe of the International Council on Large Electric Systems (CIGRE).

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These power plants are expected to generate 4,000 GWh of electricity, which currently represents a quarter of the total production or a third of the total consumption in the country. According to Bicakcic, when making final investment decisions, it is important to consider the significant risk of changes in electricity prices.

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He believes that the biggest challenge for these new plants will be balancing and the capacity of the transmission and distribution networks. It is clear that there is a lack of synchronized development of the transmission and distribution networks needed for the connection of new facilities and some transmission lines.

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On the other hand, Bicakcic emphasized that the most difficult task BiH must address in its energy transition is the phase-out of coal-fired power plants and achieving zero emissions by 2050.

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He estimates that by 2050, the share of electricity in the overall balance of energy needs should double. Therefore, it will be necessary to build pump-storage hydropower plants and to use green hydrogen and other electricity storage capacities. He added that BiH does not yet have a prepared plan or strategy for this, which is a significant problem.

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Bicakcic stressed that as a developing country, BiH is not financially capable of independently carrying out the energy transition. Without support from international financial institutions in the form of grants, favorable loans, and the transfer of knowledge and experience, it will not be possible to successfully implement a just transition in coal-producing and consuming regions.

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