BiH failed to secure financial support for transmission line construction

Bosnia and Herzegovina (BiH) cannot access the EU funds due to the failure to comply with the Energy Community Treaty and the Third Energy Package of the EU directives. It also stopped the implementation of the project for the construction of a 400 kW transmission line which is to connect Serbia, BiH and Montenegro.

Since 2014 BiH has been denied access to the IPA funds due to the failure to adopt required legislation in the energy sector. It is estimated that the country loses about EUR 20 million on an annual basis, reports the portal Nezavisne novine.

One of the projects in the energy sector that has been stopped is the project for the construction of the transmission line Višegrad – Bajina Bašta – Pljevlja. Its implementation is deferred until the adoption of the regulations that will be in accordance with the Third energy package. The value of BiH’s participation in this project, which connects Serbia, BiH and Montenegro, is estimated at about EUR 10 million. The project is also to connect BiH and Serbia with Italy via underwater power cable Montenegro-Italy which is expected to be completed in 2018.

In order to create conditions for this project to be continued in BiH, the ministers in charge agreed that by March 31 this year the legislation in the field of electricity and gas in accordance with EU regulations will be adopted.

The construction of this transmission line project was approved at the 2015 Western Balkans Summit in Vienna when EU expressed willingness to finance its implementation.

The representatives of the Serbian transmission system operator (TSO) Elektromreža Srbije (EMS) said to Balkan Green Energy News that this project is at the top of the priority projects of Energy Community, so-called PECI projects. So far, the feasibility study with preliminary design and the Environmental Impact Assessment study have been completed. At this moment, the special purpose area spatial plan is being drafted.

The project is a part of the Pan-European ten-year transmission network development plan. According to the Third Energy Package, it should be implemented by the European Network of Transmission System Operators for Electricity (ENTSO-E) together with the national TSOs says EMS.