The Government of the Federation of Bosnia and Herzegovina, at today’s session in Sarajevo, which is presided over by the Prime Minister’s Deputy Prime Minister and Federal Minister of Finance Jelka Milićević, determined three bills in the field of the energy sector in the Federation of Bosnia and Herzegovina and referred them to the parliamentary procedure.

It is about the law on electricity, then the laws on energy and the regulation of energy activities, and the use of renewable energy sources and efficient cogeneration in the Federation of Bosnia and Herzegovina, which was proposed to the Government by the Federal Ministry of Energy with the aim of improving the legal framework and harmonizing it with the regulations of the European Union. mining and industry.

The proposal of the law on electric energy of the Federation of BiH regulates the electric power policy and planning, as well as the electric power activity and the license to perform it, as well as the regulation of this activity. The law regulates, among other things, the construction of power plants, as well as the production and distribution of electricity, and the supply and trade of electricity.

In the explanation of the Ministry, it was stated that the existing Law on Electricity in FBiH from 2013 made a significant contribution to the development of the electricity sector in FBiH, and that after its adoption, BiH, as a member of the Energy Community, undertook to implement several regulations from the legal framework of the European Union and thus continue the process of electricity market liberalization and energy transition towards clean energy. It was pointed out that the Ministry decided to draft a new law in this area, because the amendments to the current law, which need to be made with the aim of harmonizing with EU regulations, would be extensive.

When it comes to the reasons for drafting and adopting the new law, in addition to harmonizing it with the legal acquis of the European Union and the Energy Community, the Ministry explained other reasons and goals for its adoption. They refer to the improvement of the legal framework in the electricity sector and the more precise definition of the rights, obligations and responsibilities of all market participants, then the improvement of the legal framework for the efficient regulation of activities in the electricity sector, as well as the improvement of the construction control system of production facilities and the introduction of a ban on the construction of small hydroelectric power plant. Among the reasons are, among others, the simplification of administrative procedures for the construction and operation of production facilities that use renewable energy sources, primarily solar power plants and wind power plants, as well as the introduction of new categories of participants and activities in the electricity market, and the introduction of new rights and mechanisms for empowerment and protection of end customers of electricity.

The proposed law on energy and regulation of energy activities in the Federation of Bosnia and Herzegovina regulates, among other things, the method of determining and implementing energy policy and development planning, as well as the commitment to use renewable energy sources and achieve energy efficiency, as well as the organization and functioning of the regulatory body.

In the explanation of this law, the Ministry stated the need to adopt a legal framework that would systematically regulate issues of common importance for the use of multiple forms of energy in the sectors of electricity, natural gas, oil derivatives, thermal energy, renewable energy sources and energy efficiency in FBiH. It was pointed out that the absence of a legal framework has a negative impact on various processes taking place in the energy sector, slowing down its development. Accordingly, the Ministry appreciates that the adoption of the new legal framework is necessary in order to define the general and long-term goals of conducting energy policy in the Federation, as a starting point for the work of all competent authorities and entities in the sector. Also, the goal is to improve strategic planning in the energy sector, create planning and implementation documents for the realization of the energy policy of the Federation, and define the conditions for performing activities in the energy sector and prescribe the manner of performing activities. Among the goals are the introduction of mechanisms for the protection of vulnerable and protected energy customers, and harmonization with the legal acquis of the European Union, i.e. the requirements arising from BiH’s international obligations.

The third bill approved today is on the use of renewable energy sources and efficient cogeneration in the Federation of Bosnia and Herzegovina. The aim of this law is to promote and regulate the production of electricity and heating and cooling energy from renewable energy sources and efficient cogeneration, as well as the use of renewable energy sources in transport for consumption on the domestic market and increasing the share in total energy consumption. The goal is also to ensure the development of incentive measures, regulatory framework and technical infrastructure for renewable energy sources and efficient cogeneration.

As pointed out in the explanation, the Law on the Use of Renewable Energy Sources and Efficient Cogeneration from 2013 regulates the field of energy production from renewable sources with a focus on the incentive system, and Bosnia and Herzegovina, as a signatory to the Treaty on the Establishment of the Energy Community, has the obligation to take legal the acquis of the Energy Community into its legislation, including in the field of renewable energy sources. This obligation meant reforming the incentive system, that is, giving incentives in a clearer and more transparent way, both to small and large producers of renewable energy sources. In addition, it is necessary to enable citizens to get involved in the decarbonization of the energy sector in a simpler way, and to supplement the existing provisions related to guarantees of origin and balancing. In this case as well, the Ministry decided to draft a new law because, with the aim of harmonizing with EU regulations, the amendments to the current law would be extensive

By the way, both houses of the FBiH Parliament passed conclusions on the acceptance of these laws in the form of a draft at their sessions in July of this year, and ordered the holding of public hearings, which the Ministry carried out.