The EU4Energy project supported the organization of the Sarajevo Energy andClimate Week (SECW 2024) by organizing five panels and three side-events within theconference

The project “EU4Energy – Support of the European Union to the energy sector in Bosnia and Herzegovina” by organizing panels and side-events at SECW 2024 focused on key topics of the energy transition in BiH, trying to bring together leading experts from the EU, as well as from the Western Balkans region and BiH, in order to through introductory lectures and panel discussions discussed the current situation in the energy sector and proposed potential solutions.

About Panel-I: Response to CBAM: what are the possibilities for reducing the impact of CBAM on the energy sector?, its moderator prof. dr. Mirza Kusljugic said the following: “Through the discussion on the panel, it was concluded that it is realistic to expect that from January 2026, the provisions of the CBAM mechanism will be applied when exporting electricity from BiH to EU countries. According to the estimates of the panel participants, this will have significant, negative consequences for trade in the Western Balkans region, making it difficult and probably reducing the export of electricity from Bosnia and Herzegovina to the EU, and consequently reducing the income of companies that currently export. The panelist’s assessment is that the possible consequences will be a reduction in production from thermal power plants, an increased import of electricity and an increase in prices for local customers. Furthermore, the most frequently planned measure of adaptation to CBAM is the accelerated construction of new capacity on renewable energy sources, which is planned by all the companies from Bosnia and Herzegovina that participated in the panel. In the long term, mitigating the impact of CBAM on the electric power sector in Bosnia and Herzegovina is the introduction of a payment mechanism for CO2 emissions, probably based on the ETS model, with the ultimate goal of joining the EU ETS. This process is complex and will require technical and financial support from the EU, including grants from the relevant funds. During 2025, it is necessary to establish a dialogue with the EU regarding the application of CBAM to the countries of the Western Balkans, taking into account that they have contracts in the energy sector with the EU, through the Energy Community, as well as signed Stabilization and Association Agreements (SAAs) that regulate free trade and that they should not be treated as “third countries” in the EU Directive regulating CBAM.”

Recognizing the importance of the topic of CBAM (Carbon Border Adjustment Mechanism), for companies in BiH and the entire economic system, EU4Energy organized at SECW the Side event-VI: The training on CBAM quartal reports for industrial companies from BiH in order to facilitate their preparations for quarterly reports on carbon emissions, focusing within the training on providing technical knowledge and practical examples. This training continues the series of trainings that the EU4Energy project organized for companies from Bosnia and Herzegovina in December 2023. and January 2024. in order to help them prepare their first quarterly report with quality, which was due by January 31, 2024.

About Panel-II: Establishment of the EU Emissions Trading System (ETS) in BiH, Dr. Branislava Lepotic Kovacevic, a key expert of the EU4Energy project for legal aspects in energy, pointed out the following: “The EU ETS is a set of financial mechanisms for the decarbonization of the economy, which to a significant extent supported EU member states, including those with low GDP and coal-based electricity, to start and continue to implement decarbonization. Bosnia and Herzegovina, especially electricity companies, need this support and entry into the EU ETS, in order to achieve decarbonization. In order to start the application of the EU ETS, the first step is the establishment of the System for monitoring emissions, reporting on emissions, verifying reports and accrediting verifiers (MRVA) as the first phase of the ETS, established in accordance with EU regulations. Countries included in the EU ETS, which have a low GDP per capita and a significant share of coal in energy production, use the Modernization Fund and the Just Transition Fund, which is a form of support for investments that other EU member states give them, through the EU ETS. system.”

As another side event organized by the EU4Energy project, the Center for Sustainable Energy Transition of the University of Sarajevo – Faculty of Economics was officially launched, as a key initiative within SECW 2024. The event brought together experts and representatives of relevant institutions in the field of sustainable development and energy efficiency. The ceremonial launch of the Center was marked by introductory speeches by prominent representatives of the organizers, who made a key contribution to the realization of this project. Nikos Tsakalidis, EU4Energy project team leader, prof. dr. Meliha Basic, dean of the University of Sarajevo – Faculty of Economics, and prof. dr. Haris Lulic, Dean of the University of Sarajevo – Faculty of Mechanical Engineering, emphasized the importance of this Center for strengthening the energy transition at the regional level. During the event, the participants had the opportunity to learn about the activities of the EU4Energy project so far, and Nikos Tsakalidis himself presented the key goals and activities that this project brings: “The EU4Energy project operates in four areas: harmonization with EU legislation in the field of energy and climate, implementation and monitoring EU legislation on energy and climate, building institutional capacities for the transition of the energy sector, and raising awareness and visibility. The key results of the project include support in the finalization of the NECP, the preparation of the new Law on the Electricity and Natural Gas Regulator, Electricity Transmission and Market in Bosnia and Herzegovina, the drafting of RES and EE regulations for the entities in Bosnia and Herzegovina, the implementation of ETS/CBAM impact analysis studies -, energy exchange in Bosnia and Herzegovina and the use of electric batteries.” Furthermore, Zoran Bogunović, a key expert on public outreach from the EU4Energy team, said on that occasion: “The Center for Sustainable Energy Transition in BiH is necessary because the process of energy transition in BiH, especially the process of sustainable and fair energy transition, must be supported by specific knowledge of an interdisciplinary character with the cooperation of all relevant actors. In this, the Center can provide its support. It can bring together experts who can cover various aspects of the energy transition, which is at the same time a technical, economic, social and political category, and, in addition to scientific research work and scientific cooperation, it can provide support to the real sector and work on the development, direction and implementation of various projects that can be useful for business development”, while prof. dr. Amila Pilav-Velic, vice-dean for scientific research work and EFSA projects, presented the planned activities of the Center that will contribute to the further development of the energy transition in the region: “The opening of the Center for Sustainable Energy Transition represents an important step for strengthening the capacity of our country in solving global problems challenges in the field of energy and sustainable development. Through cooperation with key partners and projects like EU4Energy, we have created a platform that will enable the connection of the academic community, industry and the local community in the common mission of achieving an energy sustainable future. Our goal is not only to contribute to scientific and research work, but also to provide concrete solutions that will be useful both for the academic community and for the economy as a whole.”

The EU4Energy project within the framework of SECW 2024 also organized the Side event-IV: Mandatory reserves of oil and oil derivatives and the impact on the market of oil derivatives. On this topic, the moderator of the event, Dr. Branislava Lepotic Kovacevic, pointed out the following: “Bosnia and Herzegovina, as a candidate for EU membership and a contracting party of the Energy Community, had the obligation to implement regulations on mandatory reserves by the end of last year. Although there are certain elements of the transposition of these regulations and a certain percentage of implementation in practice, Directive 119/2009/EC has not yet been transposed and the system has not yet been fully established. Obligatory reserves of oil and oil derivatives are necessary for Bosnia and Herzegovina to ensure security of supply, established in a transparent and adequate manner for all participants in the system, which is why significant efforts are being made in defining the system model and preparing regulations. The establishment of this system is both investment and security, and oil companies should and can have their place in this system, not only as a form of obligation, but certainly also a benefit.

The EU4Energy project has also organized the Panel X: Organizing the wholesale electricity market with a focus on the establishment of the electricity exchange in Bosnia and Herzegovina, about which the moderator Mr. Ognjen Markovic, an independent expert, said the following: “The presentations and discussion at Panel X were once again demonstrated the necessity of establishing an electricity exchange in Bosnia and Herzegovina. Only after the establishment of the stock exchange will follow the path with many challenges of joining the EU market through market linking. It is unquestionable that a functional stock market supports the acceleration of investments in renewable energy sources, while the redesigned market should bring security to investors and protect customers from major changes in electricity prices.”

Within the framework of SECW, the EU4Energy project also organized Panel-VIII: Green hydrogen as an important element of a climate-neutral economy and energy independence, and Panel XI: Connection and integration of RES into the power system. Both panels were moderated by prof. dr. Mustafa Music, who specifically referred to the actuality of the topic of Panel-XI: “Nine participants on the panel discussed the key challenges of integrating renewable energy sources into the power system. It was pointed out that 16 TW was reported to the Electric Transmission Company for connection to the transmission network through requests for the issuance of the Preliminary Power Consent, of which 12 TW in FNE and 4 TW in VE. A significant part of these projects will not be realized, but the existing transmission capacities are insufficient even for those projects whose realization is certain. It is necessary to increase the capacities of transmission and distribution networks and develop transmission networks in areas that are abundant in renewable resources (wind, sun, hydro potential), and transmission networks have not been developed. The need to increase interconnection capacities with neighboring countries was also highlighted. The need for significant balancing power in the system was also discussed when significant capacities based on intermittent renewable sources (wind and sun) are included in the system. Preference in balancing is given to hydroelectric power plants, gas power plants for balancing and battery capacities. It was also discussed about the reduction of system inertia and its increased sensitivity to disturbances (system stability) due to the shutdown of rotating capacities in the system (thermal blocks). Careful planning of the overhaul of the remaining rotating capacities and the need for a rotating reserve for stable and reliable system operation is suggested. Some lessons learned from the regional collapse of the system on June 21, 2024 were also presented. It was established that in order to overcome the mentioned challenges, it is necessary to include: strategists, decision-makers at all levels, planners, regulators, operators, professional and scientific community and investors.

The EU4Enery project, with the support of the launched Center for Sustainable Energy Transition, will continue to provide support to the energy sector in BiH in order to successfully carry out the energy transition and facilitate the overcoming of potential barriers identified and discussed also through the panel discussions held at SECW 2024.