BiH blocks Tuzla 7 coal plant project

BiH halts Tuzla 7 coal project state aid

Photo: EPBiH


July 6, 2022





July 6, 2022




The construction of unit 7 of the Tuzla thermal power plant encountered another obstacle with the decision of the State Aid Council of Bosnia and Herzegovina (BiH) to revoke its approval of the project. The contract for the 450 MW Tuzla 7 project was signed back in 2014.

The State Aid Council of BiH annulled its decision from 2018, when it found that a guarantee granted by the Federation of Bosnia and Herzegovina in favor of the Export-Import Bank of China for a loan to state-owned power utility Elektroprivreda BiH (EPBiH) for the Tuzla 7 project does not constitute state aid, the Energy Community Secretariat said.

The secretariat said that following its argumentation in an infringement case against BiH, the State Aid Council now decided that the guarantee constitutes illegal state aid, which the Federation’s Ministry of Finance is obliged to recover. The process was initiated in 2019.

Secretariat: The council accepted our arguments

The council’s move settles the infringement procedure, formally terminated by a decision of the Ministerial Council in 2021. It then found that Bosnia and Herzegovina has failed to comply with its obligations under article 18 of the Energy Community Treaty, which prohibits state aid.

A standstill due to the departure of General Electric

Chinese consortium Gezhouba Group and the Guangdong Electric Power Design Institute from China were hired to build the Tuzla 7 unit. The construction site has been ready since November 2020, but the activities were delayed after General Electric decided not to supply the equipment.

However, EPBiH later said it intended to continue the project and that it was looking for the best solution.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

European heat pump sales drop 2023 layoffs

European heat pump sales drop in 2023, resulting in layoffs

29 February 2024 - Heat pump sales tumbled 4.7% last year in 14 countries tracked by the European Heat Pump Association (EHPA)

BiH entities set establishment of power exchange as priority

BiH entities agree that establishing power exchange is priority

29 February 2024 - Energy ministers Petar Đokić from the Republic of Srpska and Vedran Lakić from the Federation of BiH have met in Banja Luka

OMV Petrom EU funding two green hydrogen plants

OMV Petrom obtains EU funding for two green hydrogen plants

29 February 2024 - OMV Petrom is stepping up its decarbonization efforts with projects for two green hydrogen production units at its Petrobrazi refinery

Kacır Turkey is No 1 producer of solar panels in Europe

Kacır: Turkey is No. 1 producer of solar panels in Europe

29 February 2024 - Turkey will continue incentives for renewables and roll out an emissions trading system, Minister Mehmet Fatih Kacır said