Law on the use of renewable energy sources and efficient cogeneration of the Federation of Bosnia and Herzegovina

The Parliament of the Federation of Bosnia and Herzegovina, at the session of the House of Representatives held on September 27, 2023, and at the session of the House of Peoples held on July 31, 2023, adopted the Law on the Use of Renewable Energy Sources and Efficient Cogeneration of the Federation of Bosnia and Herzegovina. The law was published in the Official Gazette of the Federation of Bosnia and Herzegovina No. 82/23 on October 25, 2023.

The reasons for the adoption of this law stemmed from the need for better organization of the energy sector, the introduction of European standards, i.e., the harmonization of regulations with the legislation of the European Union. Since Bosnia and Herzegovina is a member of the Energy Community, as such, it has already committed itself to harmonize its regulations with the legal framework of the European Union and to continue the process of liberalization of the electricity market and the transition to clean energy.

The new Law on the Use of Renewable Energy Sources and Efficient Cogeneration of the Federation of Bosnia and Herzegovina regulates the promotion of the use of renewable energy sources and efficient cogeneration, the definition of binding goals, i.e. the share of renewable energy sources in the total final consumption in the Federation of Bosnia and Herzegovina, the definition of binding goals, i.e. the share of renewable sources energy, heating and cooling energy, as well as consumption of renewable energy sources in transport.

In addition, the law regulates the research of the potential of renewable energy sources, incentive measures for the production of electricity and heat from renewable energy sources and efficient cogeneration, as well as incentive measures for the use of renewable energy sources in transport, issuing a guarantee of origin for electricity produced from renewable energy sources and maintaining the Register of issued guarantees of origin, their transfer and cancellation, the status of qualified, privileged and potential privileged producers of electricity from renewable energy sources and efficient cogeneration, the status of prosumers, renewable energy communities, conditions for the further development of the electricity market produced using renewable energy sources. The construction of plants for the production of electricity from renewable energy sources and efficient cogeneration, the connection of plants of renewable energy sources and efficient cogeneration, as well as the development of the use of alternative fuels are also regulated.

It is important to point out that the Law on the use of renewable energy sources and efficient cogeneration enabled citizens to be equal participants in the energy sector and produce electricity without establishing a legal entity. Therefore, they are enabled to be participants in the production of electricity, and not only in its consumption.

The law simplified the administrative procedures for the construction and operation of production plants that use renewable energy sources, primarily solar power plants and wind power plants. New categories of participants in the electricity market were also introduced, as well as new mechanisms for the protection of end customers.

Bearing in mind the above, the interest in constructing solar power plants has grown. The most important thing is that the construction procedures are shortened since the previous energy consent and energy permit will no longer be required. In addition, more companies on the market provide their clients with the installation of solar panels.

Together with the Law on Electricity of the Federation of Bosnia and Herzegovina and the Law on Energy and Regulation of Energy Activities in the Federation of Bosnia and Herzegovina, this law forms a set of reform energy laws, which have significantly improved legislation in the field of energy and represent a crucial step towards harmonization with the legislation of the European Union in this area, especially in terms of the liberalization of the electricity market and the transition to clean energy.

The Law on the Use of Renewable Energy Sources and Efficient Cogeneration of the Federation of Bosnia and Herzegovina entered into force on November 2, 2023.

Autor: Anja Banjac

E-mail: [email protected]

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