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Products that Bosnia and Herzegovina exports to the EU could become up to 20 percent more expensive

30. 09. 2025. admin

Products that Bosnia and Herzegovina exports to the European Union could become up to 20 percent more expensive starting in 2026, because the country produces most of its electricity from fossil fuels that generate large amounts of carbon dioxide (CO2), which the EU will begin taxing in early 2026.

Source: n1info.ba

The aim of the tax, known as the Carbon Border Adjustment Mechanism (CBAM), is to reduce pollution and carbon dioxide emissions and to increase the competitiveness of environmentally friendly industries.

The Director of the Economy Department of the Foreign Trade Chamber of BiH, Ognjenka Lalović, warned that the new rules will significantly affect the prices of products from Bosnia and Herzegovina, which are mainly exported to the EU.

According to the same source, price increases will range from two to six percent, and in some cases even up to 20 percent, depending on the type of product.

Lalović also warned that as of January 1, 2026, reporting and calculation of CO2 emissions will be mandatory, which will place an additional burden on industry.

Currently, CBAM payments apply to the cement, iron, steel, aluminum, fertilizer, and electricity industries.

Bosnia and Herzegovina generates the majority of its electricity by burning coal in thermal power plants. Out of 17 terawatt hours of electricity, ten come from production in thermal power plants operated by two power companies headquartered in Sarajevo and Trebinje. The power utility of the Croatian Community of Herzeg-Bosnia, based in Mostar, claims that it produces all of its energy from renewable sources, namely water and wind.

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The Solar Revolution at the Doorstep: New Regulations and Batteries Will Change Everything in 2026.

17. 09. 2025. admin

The Solar Revolution at the Doorstep: New Regulations and Batteries Will Change Everything in 2026.

Source: vecernji.hr

The Solar Revolution at the Doorstep: New Regulations and Batteries Will Change Everything in 2026

It’s important to highlight that the new rules will not apply to existing solar power users — they will continue to benefit from the net metering system for the next ten years from the date their solar plant was put into permanent operation.

Starting January 1, 2026, Croatia will implement new rules for the use of residential solar power systems. The current net metering model — where households could “store” surplus energy in the grid and use it later without additional cost — will be phased out. Instead, excess energy will be sold to the grid at buyback rates, while energy drawn from the grid will be charged at full price, including network fees.

At first glance, this may seem like a disadvantage, but it’s actually a step toward a more modern and efficient way of using solar energy — one that has long been standard in Western Europe. This shift will bring Croatia closer to European practices, where the combination of solar power systems and battery storage is already the norm. This is the next phase in the energy transition: maximizing the use of self-generated electricity and increasing energy independence.

The key change is that battery storage systems will become an increasingly essential part of every solar power setup. They allow households to store excess energy produced during the day and use it in the evening or during peak demand periods.

Existing Users and Those Who Join by the End of 2025 – No Changes

It’s important to note that the new rules will not apply to existing solar system users — they will continue to use the current net metering model for ten years from the date their system was put into permanent operation.

The same applies to anyone who obtains a Connection Feasibility Notification from HEP ODS by December 31, 2025.

In other words, households that install a solar system by the end of 2025 will be part of the current system of calculating energy surpluses and continue to enjoy the benefits of net metering. That’s why many experts believe the second half of 2025 is the perfect time to invest.

What’s Coming in 2026?

For households installing solar systems after January 1, 2026, the new rules don’t mean the end of profitability, but rather the beginning of a new phase in which technologies like battery systems will play a central role. Instead of feeding excess energy into the grid, the focus will increasingly shift toward storing self-produced energy and using it when the household needs it most. This gives users greater independence from the grid and better control over their consumption.

This approach is especially welcome at a time when electricity prices are rising, while self-production remains stable and predictable. Solar power systems will continue to offer long-term savings since they produce energy for decades after installation, backed by extended warranties and insurance.

It’s also important to emphasize that choosing quality equipment becomes even more crucial under the new system. Microinverters stand out in particular — unlike central inverters, these are installed individually on each solar panel. This setup allows each panel to operate independently, improving safety and efficiency while also making future system expansion easier. If a household later decides to add more panels or integrate battery storage, it can do so without major modifications.

A Trusted Provider with Proven Technology

In the Croatian market, ENNA Next is well known for its use of microinverter technology, with over 3,000 solar systems sold and more than 150 upgrades completed. Their systems are fully compatible with battery storage technology and come with a 25-year equipment warranty and 10 years of insurance against natural disasters. This gives buyers peace of mind and long-term value — essential for an investment that spans decades.

At ENNA Next, they advise customers to carefully examine what is being offered — from the technology and customer support to the reputation and reliability of the provider.

This content was created in collaboration with the ENNA Group.

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FERK considers raising electricity prices for Elektroprivreda BiH users on Wednesday

22. 07. 2025. admin

The Energy Regulatory Commission in the Federation of Bosnia and Herzegovina will hold its 14th regular session on Wednesday in Mostar, and one of the agenda items is a discussion on the request of Elektroprivreda BiH to increase the price of electricity.

Source: klix.ba

This is an agenda item entitled Consideration and Decision on the Proposal for Prices for Supply of End Customers by the Public Supplier JP Elektroprivreda BiH d.d. – Sarajevo, which was announced on the FERK website.

Incidentally, this price increase was explained at the Elektroprivreda BiH press conference held on June 30 this year.

Block tariffs have been proposed, and as Ikanović said, they have blue, green and red bills. Estimates of the average increase in bills for the so-called green bills are 4.8 percent, blue 6.3 percent and red 8.0 percent.

Let us remind you that FERK, as a regulatory body, must first approve the proposal of the Electric Power Company for the correction of electricity prices in order for an increase to actually occur.

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Prosumers will finally be able to charge for excess energy!

07. 07. 2025. admin

Prosumers, or so-called buyers – producers of electricity in Bosnia and Herzegovina, will finally be able to charge for excess electricity produced from solar power plants as of August 6, 2025.

Source: solarno.net

The first to exercise this right will be 56 prosumers in the Republic of Srpska. After years of waiting, the Mixed Holding “Elektroprivreda Republika Srpska” has invited them to conclude supply contracts, even though they are not taxpayers, reports Buka.

This possibility arises from the amendments to the Rulebook on the Implementation of the Law on Value Added Tax, published in the “Official Gazette of BiH” No. 25/25 on April 29, 2025, which entered into force on May 7, and applies after 90 days, i.e. from August 6.

By concluding the contract, buyers-producers exercise the right to be billed for electricity under the net metering system. Net metering is a commercial scheme in which excess electricity produced by a buyer-producer is delivered to the grid and transferred as an energy credit to the next billing period, thereby reducing consumption in periods when consumption exceeds production.

The right to net metering and net billing is available to electricity customers throughout the country. Given that the Federation is only just beginning to implement legal provisions relating to prosumers, there is no information yet on how many legal or natural persons have exercised this option.

As for the RS, if the buyers-producers who have so far received permits to be prosumers do not conclude a contract within the given deadline, “ERS” will continue to send them invoices only for the electricity delivered, without the possibility of calculating surpluses from their own production.

Prosumers have been waiting for years

Prosumers are key players in the energy transition because they not only reduce consumption from centralized sources, but also feed the excess energy produced into the grid, thereby contributing to sustainable development. However, although the legal framework and rights to net metering were established several years ago in the RS, and then in the FBiH and the Brčko District, prosumer rights have been violated for years.

As a reminder, the High School Center in Lopare, the first official prosumer since December 2023, has not yet received a contract that would allow it to fairly calculate its excess energy. According to data, about 56 prosumers in the RS face the same problem, while ERS takes over their excess energy and sells it, but does not pay them for it.

The Energy Regulatory Commission of the Republic of Srpska (RERS) has already twice ordered ERS to conclude contracts with prosumers and calculate energy according to the net metering system, and the Indirect Taxation Authority of BiH has confirmed that there are no VAT obstacles to this system.

However, ERS refused to act on these orders, citing ambiguities regarding VAT. With these amendments to the Regulation, all obstacles to prosumers receiving their compensation for the electricity they produce have finally been removed.

The right time to build a solar power plant for your own needs

Considering the announcements that in the coming period, the Federation will separate the Elektrodistribucija from the Elektroprivreda system, which will likely affect the new, experts say, significant increase in the price of electricity, now is the right time to become prosumers and produce electricity from your own solar power plant.

“On the one hand, we will have an increase in the price of electricity, and on the other hand, we already have extremely low equipment prices. Households, whose monthly electricity bills range up to 100 KM, need to allocate around 5,000 KM + VAT to build a mini-solar power plant on their roof. These are households that consume an average of 3 kW of electricity. With a large number of credit lines with favorable interest rates, and incentives that will increase in the coming period, the return on investment is up to 5 years, and the lifespan of the solar power plant is 25 years,” says Ekrem Mušić, director of EMT SOLAR.

Compared to Serbia and Montenegro, which already have 2,000 and 4,000 prosumers returning excess energy to the grid, BiH is still at the beginning.

And citizens are very interested in being energy independent.

Research by Operators for Renewable Energy Sources and Efficient Cogeneration (OIEiEK) from last year showed that more than 97% of the FBiH is interested in building solar power plants for their own needs, but that they are hindered by a lack of funds and legal and regulatory framework. Finally, most of these problems have been resolved.

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The implementation of CBAM will begin in 2026, which is likely to result in a drastic increase in the price of electricity, goods and services.

27. 06. 2025. admin

In less than six months, a major economic change will take place in Bosnia and Herzegovina, and the citizens will pay the price for that change. How much that price will be will depend solely on the BiH authorities.

Source: klix.ba

Namely, it is now definitive that domestic companies will pay a tax on carbon dioxide (CO2) emissions to the European Union from January 1st next year, called the Carbon Boundary Adjustment Mechanism (CBAM).

The reason for this is that the BiH government has not yet met the key conditions for us to be exempt from paying CBAM, and these conditions are the formation of an electricity exchange, the interconnection of electricity markets, the establishment of an internal CO2 emission quota trading system (EU ETS) or so-called pollution rights, and a climate neutrality strategy by 2050.

If Bosnia and Herzegovina had established the EU ETS, the money from the purchase of quotas would flow into the budgets of domestic institutions, and the CBAM would flow into the EU budget.

What is CBAM

The Union applies CBAM to all trading partners outside the EU. If this were not the case, then it would treat its economic entities that already pay taxes on harmful gas emissions unequally.

One of the main goals is to force companies in and outside the EU to switch to renewable energy sources and thereby reduce environmental pollution. If there were no CBAM and EU ETS, then it would not make much sense for the EU alone to tax its companies. The introduction of CBAM will most affect the electricity companies in Bosnia and Herzegovina as significant exporters of electricity mainly produced from fossil fuels, primarily coal. Accordingly, they will be forced to change their production practices, i.e. use more renewable energy sources in their production. The EU has been pointing out CBAM to domestic authorities for four years, but despite this, they have done very little to avoid it.

How CBAM works

Exporters from Bosnia and Herzegovina to the EU will have to submit reports on their annual CO2 emissions to their buyers in the Union starting next year. The buyer in the EU will buy certificates based on the amount of CO2 emitted (e.g. 100 certificates for 100 tons of CO2). The certificates are purchased from the competent national body. The Union will check whether the data in the reports of BiH exporters is accurate, and if it is inaccurate or falsified, sanctions are foreseen.

Companies emitting up to 50 tons of CO2 will be exempted from CBAM, which will help small and medium-sized enterprises. The obligations of domestic companies towards their partners in the EU will be to communicate with these partners, collect data for the preparation of CBAM reports (the biggest challenge will be the calculation of CO2 emissions), prepare quarterly CBAM reports, and constantly monitor changes within CBAM and their production process.

How much does CBAM cost

The price of CBAM per ton of CO2 is variable, and this change depends on the market. For example, at one point the price was 180 euros per ton of CO2.

The EU is continuously putting pressure on the BiH authorities to intensify the transition to renewable energy sources, so that ultimately the environment is less polluted and the cost of environmental pollution is lower. However, according to sources from the Union, Bosnia and Herzegovina is the worst-performing country in Europe in terms of regulations on this issue. The fact that a large Danish company rejected an invitation to invest in the production of electricity from renewable sources, despite the fact that Herzegovina has enormous potential in this field, also shows how alarming the situation is.

In addition to poor regulations, an additional problem is the outdated infrastructure (transmission lines) for the transmission of electricity.

Given that the calculation of CBAM is very complex, no one knows exactly how much CBAM will affect the BiH economy. What is known is that it will be dramatic and that citizens will ultimately pay for it through more expensive energy, and therefore more expensive goods and services. The implementation of CBAM will begin in 2026, with charges starting in 2027 for 2026.

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Bosnia and Herzegovina on track to lose up to 300 million BAM in a few years: Money that could stay in the country

05. 05. 2025. admin

It is becoming increasingly likely that the European Union will impose additional taxes on imports from Bosnia and Herzegovina, which would be a significant economic blow. This blow can be avoided, but whether it will be avoided depends entirely on Bosnia and Herzegovina itself.

Source: klix.ba

The EU plans to impose additional financial burdens not only on imports from Bosnia and Herzegovina but also on all non-member states. The proposed levy is called the Carbon Border Adjustment Mechanism (CBAM), and it will tax the import of goods whose production emits carbon.

There are two reasons for introducing this tax. One is environmental protection—CBAM is one of the measures to help the EU achieve its goal of becoming climate neutral by 2050. The second reason is to protect the Union’s economy from unfair competition, i.e., from the economies of countries that are not EU members and where carbon is either not taxed or inadequately taxed. CBAM is scheduled to begin collection on January 1, 2026.

Bosnia and Herzegovina, like all other non-EU countries, has the option to avoid CBAM, which suggests that the Union does not intend to simply fill its budget. Namely, CBAM can be avoided by introducing an Emissions Trading System (EU ETS), which has existed in the EU since 2005. The EU ETS allows companies to buy and sell quotas or “rights to pollute.”

These quotas are traded on the stock exchange or directly between companies, and the price of quotas depends on supply and demand. Some businesses may receive quotas for free. Those who do not use their quota can sell the surplus. Lower carbon emissions mean lower costs, which makes it clear that the EU ETS is also one of the EU’s environmental protection measures.

While EU ETS would fill the budgets of Bosnia and Herzegovina, CBAM would fill the budget of the Union. Bosnia and Herzegovina committed to establishing an EU ETS through the Sofia Declaration, and Chairwoman of the Council of Ministers Borjana Krišto (HDZ) promised that this trading system would be implemented.

However, the director of the Energy Community, Artur Lorkowski, recently stated that he doubts Bosnia and Herzegovina will meet all the conditions needed to avoid CBAM. These conditions include adopting a national electricity law and establishing a national electricity exchange.

The danger of a major economic blow

President of the Foreign Trade Chamber of Bosnia and Herzegovina (VTK BiH), Vjekoslav Vuković, explained in an interview with Klix.ba what impact CBAM could have on trade with the EU, to which Bosnia and Herzegovina exports 70 percent of its products. He primarily pointed out the potential financial losses for the Bosnian economy.

“Full implementation of CBAM would apply to over 40 percent of Bosnia and Herzegovina’s exports to the EU, including aluminum, steel, iron, fertilizers, electricity, and cement. Without the EU ETS, Bosnia and Herzegovina would lose 300 million KM by 2030, which would go to European countries,” Vuković emphasized.

He specifically noted the consequences of additional taxation on electricity, stating that this sector is the most sensitive to any form of carbon tax. Bosnia and Herzegovina is a major exporter of electricity, which is predominantly produced from coal.

“Considering the spillover effect that electricity can have on other industries and households through increased local market prices—which has yet to be evaluated—economic stability will be a key concern in the coming years,” he stated.

Discussing the possibility that CBAM may cause job losses, wage cuts, and/or company closures, Vuković concluded that small and medium enterprises would not be able to operate without profit or absorb losses to mitigate or eliminate negative impacts.

“We hope that companies will remain competitive, improve their operations, and retain existing jobs while creating opportunities in new markets, expanding production capacities, and enabling new employment,” he added.

We asked which industries would be most affected by the introduction of CBAM.

“This regulation initially applies to six sectors: the production of steel and iron, aluminum, electricity, hydrogen, cement, and fertilizers. According to VTK’s analyses, the most affected product groups will be aluminum, iron and steel, and electricity,” he responded.

He reminded that Bosnia and Herzegovina does not export hydrogen and that fertilizer exports are significantly smaller compared to the other sectors. He continued to discuss other Bosnian goods that the EU may additionally tax.

“Although cement exports are not large compared to the first three mentioned sectors, along with aluminum, they show the highest dependency on EU partners, making this industry especially vulnerable to the new conditions. Of the total Bosnian aluminum exports globally, 89.88% go to the EU, and 83.72% of cement exports,” he stated.

The president of VTK BiH highlighted data suggesting that domestic companies are partially aware of what EU ETS and CBAM mean. He pointed out that this data was gathered through a survey conducted in December last year.

“An analysis of responses from 76 companies showed that 58.7% do not know what direct and indirect CO2 emissions of their products are, but they want to learn more about it, while 38.7% do know what direct and indirect CO2 emissions of their product are. Furthermore, 42.1% of companies don’t know whether they must report emissions in precursors (chemical compounds) of their products, while 36.8% do know whether they must report emissions in their products’ precursors, i.e., their suppliers’ emissions,” he explained.

According to Vuković, the analysis showed that large companies are primarily prepared to enter CBAM and that some companies are already saving money to pay this tax.

“It is true that many processes in companies are implemented ad hoc or under pressure from foreign buyers, but a significant number already apply different practices (LED lighting, thermal insulation, solar power generation for internal use, use of biomass or biogas, etc.). Some are investing in innovation and sustainability,” he added.

He claims that most businesses have expressed readiness to invest in green technologies, having recognized a business opportunity in them.

What are the authorities doing?

While VTK BiH and business representatives call on the government to meet the conditions to avoid CBAM, there is silence from the ministry most responsible for fulfilling these requirements. The Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina did not respond to our inquiry. Federal Ministry of Energy, Mining, and Industry (FMERI) also calls for a faster response from the state government.

“The Federation of Bosnia and Herzegovina advocates for the urgent adoption of a national electricity law. FMERI has submitted its position on the draft law to the Ministry of Foreign Trade and Economic Relations, thereby fulfilling its obligation,” they pointed out.

FMERI emphasized that it will be very difficult to undertake any measures if CBAM is implemented.

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What will the establishment of an electricity exchange mean for citizens and businesses in Bosnia and Herzegovina?

05. 05. 2025. admin

The entity ministries of energy have recently finally agreed on the text of the Electricity Law, which should be adopted by the state authorities. In addition, they have agreed to the establishment of a national electricity exchange.

Source: klix.ba

The Electricity Law and the electricity exchange are conditions for the European Union to exempt Bosnia and Herzegovina from the Carbon Border Adjustment Mechanism (CBAM).

CBAM implies that the EU taxes all imports from outside the EU that result in carbon emissions, including electricity. This means that through such taxation, the money of Bosnian exporters would remain in EU countries. If Bosnia and Herzegovina fails to meet the mentioned conditions, CBAM will apply to it starting next year. As a result, the losses for Bosnia and Herzegovina could amount to billions of BAM.

In addition to these conditions, to avoid CBAM, Bosnia and Herzegovina must establish an emissions trading system (EU ETS), which has existed in the EU since 2005. This system allows companies to buy and sell quotas or the “right to pollute” from each other. In this way, the budgets of Bosnia and Herzegovina would be filled, instead of the EU’s.

What will the exchange mean for citizens?

The general public is unfamiliar with what the formation of an electricity exchange will mean for citizens and businesses. The Ministry of Energy, Mining, and Industry of the Federation of Bosnia and Herzegovina (FMERI) responded to this question for Klix.ba. They first explained what it will mean for citizens.

“An exchange allows the price of electricity to be determined publicly and transparently, based on supply and demand, which in the long term can lead to more harmonized and stable prices. Citizens will not immediately feel changes in their bills directly, but this process inevitably brings several important benefits for everyone. Greater competition among suppliers can also mean better conditions for end consumers in the future,” they stated.

Furthermore, as they added, stronger regional market integration contributes to more secure electricity supply. With changes in the energy market, they explained, indirect benefits for citizens are also possible, such as lower electricity prices for businesses, which could result in lower prices of their products and services for end consumers.

What will the exchange mean for businesses?

FMERI further discussed what the formation of the electricity exchange will mean for businesses.

“Businesses will have the opportunity to choose between multiple electricity providers and sign more favorable contracts, which can significantly reduce their costs, especially in energy-intensive industries. The exchange also enables greater flexibility, transparency, and market competition, giving businesses tools to better plan costs and reduce risks. This makes them more competitive both domestically and internationally,” they emphasized.

They noted that the formation of the electricity exchange is an important step toward establishing the EU ETS. We asked what the entire power system of FBiH will gain from the formation of this exchange.

“The entire energy sector gains a platform for more efficient and fair functioning. Instead of prices being determined by closed bilateral agreements, everything now takes place publicly, through supply and demand, which increases competition and market efficiency. The exchange also facilitates easier connections with neighboring markets, which strengthens our energy stability and opens the door to greater exports and better integration into the European energy system,” they stated.

Headquarters in Mostar

In response to the question of why it was decided that the exchange headquarters will be in Mostar, they emphasized that institutions responsible for the power sector are distributed throughout the country – the transmission company is in Banja Luka, the system operator (NOS) is in Sarajevo, and the state regulatory commission is in Tuzla.

By choosing Mostar as the seat of the exchange, they believe, the practice of evenly distributing institutions across the territory continues, contributing to balanced development and representation of all parts of Bosnia and Herzegovina.

CBAM Roundtable A group of people participating in a roundtable discussion

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BiH exporters in trouble: Challenges in CBAM implementation, long-term access to the EU market at risk

19. 02. 2025. admin

Bosnian businesspeople and exporters gathered at a roundtable dedicated to the Carbon Border Adjustment Mechanism (CBAM) and enhancing the competitiveness of BiH exporters, together with relevant stakeholders from the public and private sectors, regulatory bodies, and industry.

Source: klix.ba

This meeting, organized by the American Chamber of Commerce in BiH (AmCham BiH), aimed to analyze the current status of CBAM implementation in BiH, assess its economic impact, and identify possible solutions to mitigate the negative effects of this levy.

CBAM is a European Union mechanism designed to prevent “carbon leakage” by discouraging companies from relocating production to countries with less stringent environmental standards. As of January 1, 2026, it will become mandatory for EU importers of cement, iron, steel, aluminum, fertilizers, electricity, and hydrogen from outside the EU, requiring them to purchase CBAM certificates to cover CO₂ emissions. CBAM operates in parallel with the EU Emissions Trading System (ETS), ensuring that imported goods adhere to the same environmental standards. Although the responsibility formally lies with EU importers, the cost is expected to be transferred to BiH exporters, reducing their competitiveness in the EU market.

BiH faces challenges in implementing CBAM due to its high reliance on fossil fuels in its energy mix. A particular issue is that products from sectors initially covered by CBAM in 2023 accounted for around 15% of BiH’s total exports to the EU.

Since BiH has not yet introduced an Emissions Trading System (ETS) or alternative mechanisms for reducing CO₂ emissions, local businesses will not be able to offset any carbon taxes paid in BiH when calculating CBAM obligations. This increases the cost of importing BiH products into the EU, reduces their competitiveness, and threatens long-term access to the EU market.

Key Takeaways from the Roundtable:

As of January 1, 2026, BiH exporters will have to pay CBAM taxes on products such as iron, steel, aluminum, cement, and electricity.
EU importers of BiH products covered by CBAM will have to purchase CBAM certificates from January 1, 2026, since BiH lacks a national emissions accounting model.
Bosnia and Herzegovina has opted to implement the EU ETS system, but its introduction will not be feasible before 2026 and is only planned by 2030. Progress has been delayed due to the BiH Council of Ministers’ failure to adopt the Roadmap for establishing the MRV (Monitoring, Reporting, and Verification) and ETS models, despite the deadline being the end of 2024.
Until then, BiH exporters in CBAM-covered sectors will remain exposed to this levy, which will be charged upon import into the EU.
Funds collected through CBAM will remain in the EU budget instead of being reinvested in the decarbonization and modernization of BiH’s economy.

It is crucial to provide urgent financial and regulatory support measures for BiH exporters to mitigate the negative effects of CBAM. These measures should include subsidies for emissions reduction, investments in decarbonization, and incentives for adapting production processes to ensure BiH companies remain competitive in the EU market. So far, most reforms have only increased business costs, making it essential to rapidly develop support mechanisms to help businesses transition toward sustainable operations.

BiH’s energy policy should enable industries to access more competitive and cleaner electricity to reduce their carbon footprint and exposure to CBAM. Key steps include increasing renewable energy production, improving energy efficiency, and regulating electricity trade between businesses. Currently, companies that have invested in renewable energy cannot sell excess electricity, limiting market flexibility. Facilitating the purchase and sale of green energy would lower business costs and enhance BiH’s economic resilience against EU climate regulations.

Given the complexity of CBAM adaptation and the high, non-recoverable costs, all roundtable participants agreed on the urgent need for a public dialogue between authorities and BiH exporters, streamlining procedures, and securing access to financial mechanisms to maintain their competitiveness.

The roundtable brought together representatives from key institutions, including the EU Delegation to BiH, the Directorate for European Integration, the BiH Ministry of Foreign Trade and Economic Relations, both entity ministries of energy and mining, the Ministry of Spatial Planning, Construction, and Ecology of Republika Srpska, the Federation of BiH Employers’ Association, the Foreign Trade Chamber of BiH, the Federation of BiH Chamber of Commerce, as well as representatives from the private and financial sectors. The goal was to analyze the impact of CBAM and ETS on BiH’s economy and identify possible courses of action.

AmCham BiH will continue supporting BiH businesses in navigating new regulatory challenges and will encourage relevant government institutions to ensure that the voices of manufacturing firms and exporters are included in national decision-making processes.

News

Everything You Need to Know: Who Are Prosumers, and Is It Worth Becoming One in Bosnia and Herzegovina?

29. 01. 2025. admin

Have you ever thought about being both a producer and a consumer of electricity at the same time?

This is exactly what the concept of a prosumer allows—combining two roles to achieve savings and contribute to sustainability. But who exactly are prosumers, and is this model financially viable in Bosnia and Herzegovina?

Source: bljesak.info

What Does It Mean to Be a Prosumer?

The term “prosumer” comes from the English words producer (manufacturer) and consumer (user). A prosumer is an end user of electricity who produces part of their energy from renewable sources, most commonly through solar panels installed on their home’s roof. The energy they do not consume can be fed into the power grid and “saved” for later use.

For example, a household that consumes around 4,000 kWh of electricity annually could install a 4 kW solar power plant on a 20 m² roof, costing approximately 4,000 BAM. This would significantly reduce their electricity expenses, and the surplus energy produced in the summer could be used in the winter.

How to Become a Prosumer in Bosnia and Herzegovina?

Becoming a prosumer is not a simple process, but it is feasible. The steps include:

Installing solar panels on your roof.
Obtaining the necessary permits from relevant authorities and distribution operators.
Signing a contract with the electricity distributor.

After completing these steps, you become a user who can produce energy for personal use and choose between two billing schemes:

Net metering: Excess energy is recorded as an energy credit.
Net billing: Excess energy is converted into monetary compensation based on agreed terms.

By installing a power plant, obtaining the necessary permits from ministries and distribution system operators, and signing a contract with the distributor, the consumer acquires the right to be both a producer and a consumer of renewable electricity, thus gaining prosumer status.

As a prosumer, they can generate electricity to cover part of their consumption, thereby reducing electricity bills. In practice, this means that during summer, a prosumer may consume all the electricity they produce, eliminating the need to purchase electricity from their supplier. Any surplus beyond their needs is fed into the grid, where their supplier “stores” it for the winter months when the prosumer consumes more than they produce. This stored energy is then returned through a reduction in electricity bills.

The surplus energy can be accounted for in two ways:

Energy credit: Reduces the amount of electricity drawn from the supplier.
Monetary credit: Converts surplus energy into financial compensation at a rate of 90% of the electricity cost (excluding grid fees).

This is the key difference between choosing net billing (monetary credit) or net metering (energy credit).

Opportunities and Challenges for Prosumers in Bosnia and Herzegovina

While the prosumer concept is growing in the region—led by Slovenia with 50,000 prosumers, followed by Croatia and Montenegro—Bosnia and Herzegovina is still lagging.

The main issues include:

A complex permit issuance process that still needs simplification.
The lack of VAT treatment for prosumers, pending regulatory changes.
Unclear procedures for connecting solar power plants to the grid.

On the positive side, the Renewable Energy Law provides subsidies for setting up such installations. However, slow regulatory adaptation currently limits the faster development of this concept in Bosnia and Herzegovina.

Why Become a Prosumer?

Beyond obvious savings, prosumer status offers several advantages:

Energy independence – reduced reliance on external suppliers.
Environmental awareness – contribution to reducing CO₂ emissions.
Long-term profitability – while initial investments may be high, the return on investment comes through reduced electricity costs.
Investment vs. savings ratio – payback time is relatively short, at most four years. With rising electricity prices, the return will be even faster.

Time for Action

Bosnia and Herzegovina has enormous potential for growing the prosumer model, but this potential must be supported by effective legislative and regulatory frameworks.

Although authorities have introduced necessary acts and procedures, the process is still stalled as utility companies have yet to implement them. These companies currently hold the keys to unlocking the system.

With hope for acceleration in the process, if you wish to be part of the energy transition and achieve real savings, becoming a prosumer is certainly an option worth considering.

For citizens of Bosnia and Herzegovina, the biggest challenge remains adapting existing procedures and utilizing available subsidies, while businesses also have the opportunity to become prosumers.

With some patience and timely information, you can join the global trend of energy independence and sustainability.

Okrugli stol u Mostaru: Prosumerska postrojenja imaju ključnu ulogu u provođenju energetske tranzicije

Events

Round Table in Mostar: Prosumer Facilities Play a Key Role in Implementing the Energy Transition

27. 01. 2025. admin

The Renewable Energy and Efficient Cogeneration Operator (OIEiEK Operator) organized a round table yesterday in Mostar on the topic: “Harmonization of Existing and New Regulations to Simplify Procedures for Obtaining Permits for Prosumers.”

Source: OIEiEK

The event brought together representatives of the Energy Regulatory Commission in the Federation of Bosnia and Herzegovina, the Federal Ministry of Energy, Mining, and Industry, the Federal Ministry of Spatial Planning, JP Elektroprivreda HZHB d.d. Mostar, JP Elektroprivreda BiH d.d. Sarajevo, representatives of cantonal ministries responsible for construction and spatial planning from the Zenica-Doboj, Posavina, Central Bosnia, Herzegovina-Neretva, West Herzegovina, Canton 10, and Una-Sana cantons, as well as representatives of the Foreign Investment Promotion Agency of Bosnia and Herzegovina, and international organizations such as USAID EPA 2 and GIZ.

The round table was held to fulfill obligations stemming from Article 51, Paragraph (2) of the Law on the Use of Renewable Energy Sources and Efficient Cogeneration (“Official Gazette of the Federation of BiH,” No. 82/23), specifically regarding the simplification of procedures for obtaining permits for prosumers by cantonal authorities.

Armin Đuliman, a technical associate for mechanical phase and research and development at the OIEiEK Operator, presented the role of prosumer facilities in the energy transition, emphasizing the benefits for both citizens and businesses investing in these facilities. The presentation included an overview of EU regulations and examples of best practices from the European Union and the region.

Particular attention was given to the experiences of certain cantons in the Federation of Bosnia and Herzegovina that have already adopted simplified procedures for constructing rooftop solar power plants, which can now be registered as prosumer facilities under the new legal framework. Aida Sumbuljević, Assistant Minister for Spatial Planning and Construction in the Zenica-Doboj Canton, also addressed this topic.

During the open discussion, representatives of cantonal ministries explained the current situation and outlined the steps taken to meet legal obligations, expressing full readiness to simplify procedures for obtaining permits for prosumers.

Speaking about the obligation and importance of promoting prosumer facilities and informing the public about the benefits of investing in their construction, OIEiEK Operator spokesperson Nataša Mandrapa informed attendees that the Operator has adopted a Public Information Program. She announced that promotional activities would continue to ensure that all information about construction and co-financing benefits of prosumer facilities is promptly made available to all interested parties in the Federation of Bosnia and Herzegovina.

It should be noted that on October 2, the OIEiEK Operator held a joint meeting with representatives of the Energy Regulatory Commission in the Federation of BiH, the Federal Ministry of Energy, Mining, and Industry, and power companies in the Federation of Bosnia and Herzegovina to meet obligations related to simplifying the connection procedures for prosumers.

At the round table, representatives of JP EP HZHB d.d. Mostar, Maria Đogić, and JP EP BiH d.d. Sarajevo, Džemo Borovina, provided updates on the progress made in preparing the necessary secondary legislation, which incorporates simplified approaches for connecting rooftop prosumer facilities. They noted that these measures would take effect once cantonal ministries complete their tasks. Additionally, they highlighted an agreement between the two power companies to jointly approach the Indirect Taxation Authority to resolve the remaining uncertainties related to calculating excess electricity generated and fed into the grid by prosumer facilities, through amendments to the VAT Law Implementation Rulebook in Bosnia and Herzegovina.

The round table participants expressed a shared commitment to further collaboration in fulfilling obligations to simplify the construction and connection procedures for prosumer facilities and promoting renewable energy sources. Particular support for these efforts was expressed by Mak Kamenica, Director of USAID’s Energy Sector Assistance Project 2 (USAID EPA 2) in Bosnia and Herzegovina. The purpose of this project is to provide technical assistance for developing a sustainable energy sector in Bosnia and Herzegovina.

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