Focus on Energy, 2010 - Karanovic & Nikolic

Major projects in Republika Srpska with respect to the building of new facilities are: and new block of TPP “Ugljevik”) 4 ; “Suceska”, “Paunci” and “Foca” where the tender application for investors should be published during2010. This project will be coordinated with the Serbian government 5 ; network of water supply tunnels for the utilization of the hydro capacities; and 6 .In January 2010 the Government of FBIH announced and presented a series of projects named “Prioritiesfor the construction of energy facilities in the FBIH” 7 . Investments in these projects are expected to amountto EUR 5 billion and the Government of FBIH is interested in identifying partners for these investments.The projects listed include:58 8 . “Vinac”, “Han Skela”, “Ugar”, “Vrletna Kosa”, “Ivik”, “Babino Selo”, “Glavaticevo”and “Bjeilimici” 9 . 10 . jna”,and “Poklecani”) 11 .Natural GasOVERVIEWFOCUS ON ENERGYThe gas infrastructure in BIH is not very developed and includes only 191 km of gas pipeline. There are onlytwo urban areas with a gas supply network. Legislation in the two main entities differs as RS has a newlyadopted the Law on Gas while the FBIH still does not have a specific law, but has issued a Decree on GasSector Regulation 12 which is described in greater detail below.GAS / RSUnlike the FBIH, trade in the natural gas sector in the RS is based on the principles of an open and freemarket.Qualified consumers have the right to buy natural gas on the free market without requesting anypermit from the RCERS. There are two types of consumers, qualified and tariff consumers. A qualifiedconsumer is a natural gas consumer that has the right to choose who it will buy the gas from (“QualifiedConsumer”). Qualified Consumers buy natural gas on the free market. Any consumer can have the statusof a Qualified Consumer regardless of whether it is engaged in the transport or distributive network; this isbased on a consumer’s annual gas consumption as specified by the RCERS. All natural gas consumers, savefor households, have had Qualified Consumer status since 1 January 2008. All the natural gas consumerswithin the household category will have the status of Qualified Consumers from 1 January 2015.The purchase of natural gas abroad is permitted in the RS for companies holding the necessary licenses issuedby the RCERS. Natural gas prices are regulated and are publicly available. These prices are determinedby the supplier and based on the methodology and tariff system of the RCERS 13 . Since there has been no4 TPP Stanari (the concession was granted to the Energy Financing Team) should be constructed in next five years and will have installed capacity of410 MW. Installed capacities of new blocks of TPPs Gacko and Ugljevik should be 1320 MW.5 Installed capacity for these HPPs on Uper Drina River is around 250 MW.6 Studies identified 120 potential locations for small HPPs with total installed capacity 340 MW7 Source: http://www.fbihvlada.gov.ba8 Installed capacity for these TPPs is more than 2000 MW9 Installed capacity for these HPPs is 455 MW10 Installed capacity for these small HPPs is 66 MW11 Installed capacity for these WPPs is 270 MW12 The Decree on the organization and regulation of gas sector economy (Official Gazette of the FBIH no. 83/07)13 The Rule on Tariff Methodоlogy in the System of Transport, Distribution, Storage and Supply of Natural Gas (Official Gazzete of the Republic ofSrpska No. 9/09)