As one of Bosnia and Herzegovina’s (BiH) most important export sectors, the energy sector has the potential to be a major engine for economic growth in BiH. The sector is also relevant for the country’s accession to the EU, as development of competitive energy markets is required by both the EU and the Energy Community Treaty. Meanwhile, the country is 100 percent dependent on a single source and pipeline for natural gas: Russia. BiH energy sector stakeholders need assistance not only to diversify the country’s source of gas supply but also to establish an investor-friendly legislative and regulatory framework and integrate the energy sector into regional and EU energy markets.
Launched in September 2019, USAID's Energy Policy Activity is helping BiH coordinate, manage, and improve transparency in the gas and electricity sectors while providing targeted technical assistance to improve and simplify the energy policy environment and legal framework. Through this project, USAID develops and recommends legislative guidance and other measures at all levels of government to ensure that the BiH energy sector is compliant with EU requirements. The project also supports a public outreach and awareness program that aims to promote a market-based energy sector and educate the general public about the benefits of the changes taking place in the energy sector.
Creating a transparent and competitive legislative and regulatory framework and integrating BiH’s energy sector into regional and EU markets is essential for encouraging Western investors to engage in local energy projects, which will have the additional benefits of diversifying sources of natural gas, preventing corruption, and enhancing energy security.
Learn more about the project here.
USAID’s Energy Policy Activity will assist BiH stakeholders in transforming the energy sector to reach its full potential as an engine of economic growth, particularly in the natural gas and electricity subsectors.
Through this project, USAID also assists the BiH Ministry of Foreign Trade and Economic Relations and other relevant ministries in improving energy strategies and action plans, including the development of the National Energy and Climate Plans. Additionally, USAID is helping BiH develop a cyber security roadmap for the energy sector.
USAID is helping BiH conduct innovative public outreach and educational activities to promote a market-based energy sector by informing the general public about the benefits of (and EU requirements for) the new energy sector. USAID assists the three regulatory commissions to expand their websites platforms to provide customers with transparent information and the ability to compare energy prices—and ultimately choose retail suppliers for themselves.