BIH does not have oil pipelines apart from where the oil refinery in Brod has been c<strong>on</strong>nected with the AdriaticPipeline in Croatia.The RS has adopted the Law <strong>on</strong> Oil and Oil Derivatives 16 that prescribes the main features for the oil sectorin RS when it comes to the producti<strong>on</strong> of oil derivatives, market functi<strong>on</strong>ing and safe supply.CoalBIH has significant reserves of coal and most of them are used for the producti<strong>on</strong> of electric power in TPPs.Major coal mines are Stanari, Ugljevik, Kreka, Banovici, Kakanj, Gacko and Zenica. Reserves of lignite areestimated to be in the regi<strong>on</strong> of 3.7 billi<strong>on</strong> t<strong>on</strong>s whilst reserves of brown coal are estimated to be in theregi<strong>on</strong> of 2.2 billi<strong>on</strong> t<strong>on</strong>s.In RS the major coal mines Gacko and Ugljevik are integrated with thermal power plants, whilst Stanari isowned by <strong>Energy</strong> Financing Team who plan to c<strong>on</strong>struct a TPP nearby. In FBIH, seven coal mines, besidesthose already integrated with nearby TPPs, are part of the Elektroprivreda FBIH since 2009.Renewable <strong>Energy</strong>60The Law <strong>on</strong> <strong>Energy</strong> in the RS 17 states that both the exploitati<strong>on</strong> of renewable sources of energy and efficientcogenerati<strong>on</strong> are of equal importance to the RS. This is in order to ensure a reducti<strong>on</strong> in the producti<strong>on</strong> ofelectricity from fossil fuel sources. This in turn should reduce the negative impact that energy generati<strong>on</strong>has <strong>on</strong> the surrounding envir<strong>on</strong>ment. This is also an effort to promote the efficient utilizati<strong>on</strong> of energyand the development of new technologies. It is also motivated by the need to promote a variety of energysources, to increase energy safety and to decrease the dependency that the RS has <strong>on</strong> the importati<strong>on</strong> ofenergy in the l<strong>on</strong>g term.FOCUS ON ENERGYThe Law <strong>on</strong> <strong>Energy</strong> prescribes that the RS Government should adopt a regulati<strong>on</strong> c<strong>on</strong>taining measures tostimulate the increase of renewable energy sources and producti<strong>on</strong>. It is also envisaged by the RS Law <strong>on</strong><strong>Energy</strong> that such a regulati<strong>on</strong> should also promote the use of biofuels in fuel c<strong>on</strong>sumpti<strong>on</strong> attributable tothe transport sector.RCERS shall with the RS Government develop a system of subsidies for the producti<strong>on</strong> of renewablesources. The RS Law <strong>on</strong> <strong>Energy</strong> also prescribes that producers of electricity from renewable sources canbe granted a certificate of origin certifying that the producti<strong>on</strong> facility produces power from renewablesources and with respect to energy efficiency and the protecti<strong>on</strong> of the envir<strong>on</strong>ment.PARTICIPANTS IN THE ENERGY SECTORThe legal framework for the energy sector in BIH is defined firstly, <strong>on</strong> a state level, mainly through therules <strong>on</strong> the transmissi<strong>on</strong> of electricity, foreign trade and the provisi<strong>on</strong>s of the general legal framework forthe sector’s opening. Sec<strong>on</strong>dly, it is defined <strong>on</strong> the entities’ level, c<strong>on</strong>taining detailed provisi<strong>on</strong>s <strong>on</strong> howthe energy sector is to be opened up to foreign investment and how the regulati<strong>on</strong> of energy producti<strong>on</strong>,distributi<strong>on</strong>, supply and domestic trade is to occur.State LevelOn a state level, the “Law <strong>on</strong> the Transmissi<strong>on</strong>, Regulati<strong>on</strong> and System Operati<strong>on</strong> of Electrical <strong>Energy</strong> inBIH” 18 established the initial legal framework for the regulati<strong>on</strong> of the electric power sector and the establishmentof an electric power market. In particular, with respect to the electricity transmissi<strong>on</strong> system in BIH,this law has organized the establishment and the functi<strong>on</strong>ing of the State Electricity Regulatory Commissi<strong>on</strong>16 the Law <strong>on</strong> Oil and Oil Derivatives (Official Gazette of the Republic of Srpska no. 36/09)17 The Law <strong>on</strong> <strong>Energy</strong> (Official Gazette of the Republic of Srpska no. 49/09),18 the Law <strong>on</strong> the Transmissi<strong>on</strong>, Regulati<strong>on</strong> and System Operati<strong>on</strong> of Electrical <strong>Energy</strong> in BIH (Offcial Gazette of Bosnia and Herzegovina Nos. 07/02,13/03 and 76/09)
of BIH (“SERC”), the independent system operator, and the company resp<strong>on</strong>sible for the transmissi<strong>on</strong> ofelectric energy named “Elektroprenos BH”,It is important to note that:of electricity in BIH and licenses for the trade of foreign electricity as well as to approve and m<strong>on</strong>itorthe applicati<strong>on</strong> of tariffs and tariff methodologies for transmissi<strong>on</strong>. A transmissi<strong>on</strong> license, according tothe above law, needs to c<strong>on</strong>tain c<strong>on</strong>diti<strong>on</strong>s which will allow competing electricity suppliers’ fair accessto the transmissi<strong>on</strong> system;is authorized to manage the operati<strong>on</strong> and dispatch of the transmissi<strong>on</strong> grid in BIH. It also directs,schedules and coordinates the maintenance, c<strong>on</strong>structi<strong>on</strong> and expansi<strong>on</strong> of the grid with the company“Elektroprenos BH”;sp<strong>on</strong>sibilitiesinclude the transmissi<strong>on</strong>, maintenance, c<strong>on</strong>structi<strong>on</strong>, expansi<strong>on</strong> and management of thetransmissi<strong>on</strong> network of BIH. It should be noted that, according to the said law, after the establishmentof “Elektroprenos BH”, no other company can have jurisdicti<strong>on</strong> or authority in such matters; andTrade and Ec<strong>on</strong>omic Relati<strong>on</strong>s of BIH.61FOCUS ON ENERGY
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