Core area “Responsibility for our planet – climate and energy” Stable and sustainable energy supply

Functioning energy supply systems are key to stable economic and financial development in Bosnia and Herzegovina.

The river Vrbas

The river Vrbas

The river Vrbas

Germany is focusing in particular on supporting the use of renewable energy and enhancing energy efficiency. Bosnia and Herzegovina has enormous – and as yet largely untapped – potential for the generation of energy from hydropower, wind power, biomass and solar energy. With international support, the country now has the opportunity to generate revenues by exporting energy to neighbouring countries. That process is being slowed down by a lack of infrastructure for efficient power distribution and a lack of conducive conditions that would make the expansion of renewables more attractive for domestic companies.

Together with other countries in Southeast Europe and the EU, Bosnia and Herzegovina has established an energy community. Its aim is to create a uniform regulatory framework and promote investments in climate-smart energy production. As part of a GIZ project, Germany is supporting the Ministry of Foreign Affairs, the Ministry of Foreign Trade and Economic Relations and the Ministries of Energy of the two entities in Bosnia and Herzegovina in developing and implementing a decarbonisation strategy. The focus is on rehabilitating buildings to increase energy efficiency and on increasing renewable energy production capacity.

One major development cooperation project is the new Mesihovina wind farm in southern Herzegovina, the first installation of its kind in the Western Balkans and a flagship project for the further expansion of climate-friendly wind power in the region. The wind farm was put into operation in 2018 and has a total capacity of 50 megawatts. In early 2021, the second wind farm financed with German support, which is located on Podveležje plateau near Mostar, was inaugurated. Three more plants are currently in the planning stages.

Germany is also helping the country expand the use of hydropower by assisting with the construction of new power plants or helping to modernise existing ones. All projects are thoroughly appraised, especially in terms of their environmental and social compatibility. In addition, the principles of the European Water Framework Directive are applied, which includes much stricter provisions for environmental protection than World Bank standards, for instance.