Bosnia and Herzegovina's natural resources
Bosnia and Herzegovina, located in southeastern Europe, possesses a wealth of natural resources, particularly in the energy sector. The country relies heavily on coal, which accounted for 54 percent of its energy generation in 2021, with additional contributions from oil and a minimal amount of natural gas. Despite this potential, Bosnia and Herzegovina faces significant challenges in fully utilizing these resources due to inadequate infrastructure, underinvestment, and a complex political landscape that hampers effective regulation and ownership. As a result, the country is heavily dependent on energy imports, primarily from neighboring countries like Russia, Croatia, and Serbia, making it vulnerable to external market fluctuations and geopolitical tensions.
Hydropower has significant potential that remains largely untapped, with current production at only about one-third of its capacity. Moreover, renewable energy sources such as wind and solar are not currently harnessed, despite identified opportunities for development. Environmental concerns, including deforestation and greenhouse gas emissions, further complicate the energy landscape, highlighting the need for ecological sustainability practices.
Efforts are underway to improve energy efficiency and security, notably through international collaborations such as the Energy Community Treaty with the European Union, which aims to enhance regulatory frameworks and promote sustainable energy practices. As foreign investment grows, there is potential for Bosnia and Herzegovina to develop its energy resources more sustainably, benefiting both the economy and the environment.
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Bosnia and Herzegovina's natural resources
Official Name: Federation of Bosnia and Herzegovina.
Summary: Bosnia and Herzegovina is a southeastern European country divided into several governments and ethnicities. The country is rich in natural energy resources, but is dependent on energy importation because of underutilization, lack of sufficient infrastructure, and inadequate government support.
Bosnia and Herzegovina has state, district, and private oversight and participation in its complex energy sector. Coal is one of the country’s main energy sources for the generation of both electricity and heat. In 2021, 54 percent of the nation's energy came from coal, compared to 23 percent from oil and 3 percent from natural gas. Peat, coal, and hydro are among the leading exploited natural resources, and there are extensive local lignite and brown coal mining operations. Electric generation power plants are located near these resources. Bosnia and Herzegovina has negligible oil and natural gas resources, leading to heavy reliance on imports. There is a privatized oil refinery located at Bosanski Brod that is majority owned by the private corporation Zarubezhneft.
Natural gas is imported from Russia via Ukraine, Hungary, and Serbia. Agreements to transport natural gas include those with the Hungarian company Mol and the Serbian company Srbjigas. The national ministry of trade has also approved the creation of the planned Ionian-Adriatic Gas Pipeline. Oil is imported from Croatia, Serbia, Montenegro, and Hungary. The main sources of electric power generation are thermo-electric followed closely by hydroelectric, although the country’s hydropower is greatly underutilized, at approximately one-third of potential capacity.
The availability of energy resources such as natural gas is further limited in rural areas due to lack of sufficient infrastructure. Reliance on imported energy leaves the country vulnerable to outside factors such as conflicts that can result in shortages and higher prices. For example, the country faced severe winter natural gas shortages during a 2009 Russian natural gas embargo against Europe, resulting in hardships and an overburdened electric grid. Other regional problems include high mortality rates from cold winter weather and inadequate heating, deforestation due to the traditional and ongoing use of wood as a common domestic fuel source, environmental damage to wetlands and water resources due to unsustainable hydroelectric power generation practices, and greenhouse gas emissions from antiquated power plants.
Top energy concerns for Bosnia and Herzegovina include energy efficiency, energy security, and environmental sustainability. The country’s complicated political structure has resulted in difficulties in both ownership and regulation of energy resources and production. The national government has also shown little awareness of or concern for the association between energy and environmental sustainability or between sustainable energy development and economic growth, in part due to regional instability stemming from the Balkan Wars of the 1990s. The country currently does not utilize its wind and solar resources, despite the identification of possible power plant locations. While hydropower plants are in operation, this resource is widely underutilized. The country’s other identified renewable resources, such as biomass and geothermal, are also nonexistent or underutilized.
While the country lags behind other nations in the region in terms of long-term energy planning, policies, and institutional development, the national government has made steps at the international level to rectify the situation. Bosnia and Herzegovina was one of nine southeastern European countries to sign the Energy Community Treaty with the European Union (EU) in 2005, creating the Energy Community of South East Europe (ECSEE). Treaty goals include energy supply and demand equity, improved regulatory control, the creation of a regional energy market in accordance with the EU standards and the EU’s Internal Energy Market, and the creation of frameworks for international financial support for infrastructure and natural gas system expansion.
International agencies such as the European Union and the United Nations Development Programme have undertaken a variety of energy and environmental initiatives in the country. Primary objectives include increased national and local capacity for sustainable management and development of natural resources, increased energy security and efficiency, sustainable energy market reforms, compliance with international regulations such as the EU Environmental Acquis, and promotion of the economic development potential of sustainable energy. Private foreign companies have shown interest in the development of the country’s underutilized sustainable natural resources, such as hydropower.
Bibliography
"Bosnia and Herzegovina." The World Factbook, Central Intelligence Agency, 24 July 2024, www.cia.gov/the-world-factbook/countries/bosnia-and-herzegovina/. Accessed 31 July 2024.
"Bosnia and Herzegovina." International Energy Agency, 2024, www.iea.org/countries/bosnia-and-herzegovina. Accessed 31 July 2024.
"Bosnia and Herzegovina Country Briefing—The European Environment: State and Outlook 2015." European Environment Agency, 10 Oct 2017, www.eea.europa.eu/soer-2015/countries/bosnia-and-herzegovina. Accessed 31 July 2024.
Gekić, Haris, Aida Bidžan-Gekić, Nusret Drešković, and Ranko Mirić. “Natural Resources of Bosnia and Herzegovina.” The Geography of Bosnia and Herzegovina. Springer, 2022, pp. 267–284.