Federation of Bosnia and Herzegovina energy law reform

On 31 July 2023 the Federation of Bosnia and Herzegovina amended a set of laws designed to align its electricity regulations with those of the EU.

Amendments were made to:

1. Electricity Law, published in the Official Journal of the Federation of Bosnia and Herzegovina 60/23; and
2. Renewable Energy and High-Efficiency Cogeneration Law.

In addition to changes to existing legislation, the entity also adopted a new Law on Energy and Regulation of Energy Activities in the Federation of Bosnia and Herzegovina, also published in the Official Journal of the Federation of Bosnia and Herzegovina No. 60/23. This law provides systemic regulation of issues relevant to the use of multiple types of energy, including electricity, natural gas, and oil products, as well as renewables and energy efficiency.

Key changes introduced by the latest package of energy regulations:

• A natural person may become a prosumer and generate electricity for their own consumption.
• Natural persons who are prosumers may form associations to generate, consume, store, exchange, and sell electricity.
• Generating and storing electricity no longer requires an energy permit.
• Generating electricity in a facility with an installed capacity of less than 1 MW no longer requires an energy permit.
• A simplified procedure has been introduced for connecting to the grid facilities operated by final customers that generate energy from renewables with an installed capacity up to and including 23 kW.
• Certificates attesting that design documents comply with the Electricity Law are no longer necessary.
• Penalties have been increased for non-compliance with the Renewable Energy and High-Efficiency Cogeneration Law by renewable energy and efficient cogeneration operators.
• Continuous monitoring of electricity stakeholders has been ensured.

Objectives of this extensive reform of energy regulations include safeguarding the interests of the general public, ensuring stability and efficiency of the energy sector, aligning rules with EU standards, and increasing security of supply, all of which are pressing concerns given the ongoing energy crisis and the drive to decarbonise.