Energy Efficiency

FBiH to hand out EUR 12 million in energy efficiency subsidies


Photo: Willfried Wende from Pixabay


August 25, 2023





August 25, 2023




The Federation of BiH (FBiH), one of the two political entities of Bosnia and Herzegovina, will financially support energy efficiency measures at micro, small, and medium sized enterprises, as well as households, with almost BAM 24 million (about 12.3 million euros).

The funding was provided from the European Union’s (EU) aid package for Bosnia and Herzegovina (BiH), worth EUR 70 million, intended to mitigate the consequences of the energy crisis on citizens, households, and businesses. The countries of the Western Balkans have received a total of EUR 500 million in EU aid for these purposes, as well as an additional EUR 500 million in grants for investments.

BiH is expected to use EUR 50 million for energy efficiency subsidies for the most vulnerable families, while EUR 10 million will be disbursed to about 4,000 residential buildings and another EUR 10 million to some 400 micro, small, and medium enterprises. The EUR 70 million aid package will be split between the FBiH and the other political entity of BiH, the Republic of Srpska.

2,600 households in the FBiH are expected to receive assistance

The Government of the FBiH has now adopted a spending program for the EU aid, which envisages allocating BAM 12.9 million (about EUR 6.6 million) to the Federal Ministry of Spatial Planning.

Under the program, the funding will be disbursed to owners or co-owners of residential facilities in the territory of the Federation of BiH, with 2,600 households expected to receive assistance.

The funds will help finance energy efficiency measures: installing insulation, replacing windows and doors, improving the system for the production and distribution of thermal energy for heating and preparation of domestic hot water (by installing pellet boilers, heat pumps, solar collectors, etc.)

Within 60 days, the federal ministry should transfer the funds to the FBiH Environmental Protection Fund, which will issue a public call for subsidies.

At least 264 businesses will get subsidies

Recently, a similar program was adopted for micro, small, and medium sized enterprises in the FBiH, and the amount is the same – BAM 12.9 million.

The grants program will co-finance energy efficiency measures to help businesses reduce operating costs and increase competitiveness. According to reports, at least 264 firms should receive subsidies.

In addition to the measures envisaged for households, businesses can also use the funds to improve the energy efficiency of indoor lighting and production processes (by using waste heat, for example), to increase the efficiency of electric drives, as well as to build photovoltaic power plants for the production of electricity exclusively for self-consumption.

Also within 60 days, the funds will be transferred to the FBiH Environmental Protection, which will then issue a public call for their distribution.

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