Tag: Ugljevik

  • Bosnia and Herzegovina’s Coal Dependency: Environmental and Economic Implications

    Bosnia and Herzegovina’s Coal Dependency: Environmental and Economic Implications

    Bosnia and Herzegovina, a country in Southeast Europe, is heavily dependent on coal for its energy needs. The country is rich in coal reserves, which account for more than 60% of its total energy production. While this may seem like a boon for the nation’s economy, the reliance on coal has significant environmental and economic implications.

    Coal-fired power plants are the primary source of electricity in Bosnia and Herzegovina. The country has three major power plants – Tuzla, Kakanj, and Ugljevik – which are all coal-fired. These plants have been operating for decades and are responsible for the majority of the country’s greenhouse gas emissions. The emissions from these plants contribute to climate change, which has been linked to extreme weather events, rising sea levels, and other environmental problems.

    In addition to contributing to climate change, coal-fired power plants also release harmful pollutants into the air. These pollutants include sulfur dioxide, nitrogen oxides, and particulate matter, which can cause respiratory problems, heart disease, and other health issues. The World Health Organization (WHO) estimates that air pollution in Bosnia and Herzegovina causes approximately 44,000 years of life lost each year. This is a significant public health concern, as well as an economic burden on the country’s healthcare system.

    Despite the environmental and health risks associated with coal, Bosnia and Herzegovina continues to invest in new coal-fired power plants. In recent years, the country has signed agreements with Chinese companies to build two new coal-fired power plants – Banovici and Tuzla 7. These projects have been met with opposition from environmental groups, who argue that the country should be investing in cleaner, renewable energy sources instead.

    The continued reliance on coal also has economic implications for Bosnia and Herzegovina. While coal may seem like a cheap source of energy, the true cost of coal is much higher when considering the environmental and health impacts. Moreover, as the world moves towards cleaner energy sources, the demand for coal is expected to decrease. This could lead to a decline in the coal industry, which currently employs thousands of people in Bosnia and Herzegovina.

    Furthermore, the European Union (EU) has set ambitious targets for reducing greenhouse gas emissions and increasing the share of renewable energy in its member states. Bosnia and Herzegovina, as a potential candidate for EU membership, will need to align its energy policies with these targets. This could mean phasing out coal-fired power plants and investing in renewable energy sources, such as wind, solar, and hydropower.

    There are already signs that Bosnia and Herzegovina is starting to recognize the need for a transition to cleaner energy sources. In 2020, the country adopted a new energy strategy, which includes plans to increase the share of renewable energy in its energy mix. However, the strategy still relies heavily on coal, and it remains to be seen whether the country will be able to meet its renewable energy targets.

    In conclusion, Bosnia and Herzegovina’s dependence on coal has significant environmental and economic implications. The country’s coal-fired power plants contribute to climate change and air pollution, posing risks to public health and the environment. Moreover, the continued reliance on coal could hinder the country’s economic development and its prospects for EU membership. To address these challenges, Bosnia and Herzegovina needs to invest in cleaner, renewable energy sources and reduce its dependence on coal. This will not only benefit the environment and public health but also help the country to achieve long-term economic growth and stability.

  • Bosnia suspends 700MW lignite-fired plant project

    Bosnia suspends 700MW lignite-fired plant project

    The spatial planning ministry of Bosnia and Herzegovina’s Republika Srpska entity has terminated the environmental permitting procedure for the proposed 700MW Ugljevik 3 lignite-fired power plant.

    The decision means the project is “practically suspended until further notice,” Redzib Skomorac, legal advisor to the Bosnian environmental organisation Centre for the Environment, told Argus. The halting of the permitting procedure comes shortly after a Bosnian district court annulled the planning ministry’s decision to approve the plant’s environmental permit following a lawsuit initiated by the Centre for the Environment, which highlighted “numerous procedural deficiencies” in the document.

    The recent termination of the environmental procedure came at the request of developer Comsar Energy Republika Srpska. The project’s suspension will last until the entity’s supreme court delivers a decision on the ministry’s request for a review of a previous court judgement to annul the plant’s environmental impact study in December 2022. This process will be complete “three years after the case is initiated,” Skomorac told Argus, giving a date of December 2025. The Centre for the Environment would expect “much greater scrutiny if the continuation of the permitting [procedure] occurs in the near future,” Skomorac said.

    “It is necessary to stop with the persistent approval of the project whose legality is as questionable as its economic justification,” Skomorac said in a post on the Centre for the Environment’s website. “The ministry’s decision to stop the proceedings, at least temporarily, was a necessary decision,” he added.

    If completed, Ugljevik 3 would consist of two 350MW units, which would generate a combined 4.9 TWh/yr of power. But a timeframe for building works at the plant is far from clear, with Bosnia’s recent draft National Energy and Climate Plan stating that the country has “no plan to increase the capacity of plants burning fossil fuels”.

    The spatial planning ministry of the Republika Srpska did not respond to an Argus request for comment on the suspension of Ugljevik 3 or the fate of other proposed lignite-fired plants, such as the 450MW unit 7 at Tuzla and the 300MW unit 8 at Kakanj.

    Power generation in the Republika Srpska is dominated by state-owned utility ERS, which also owns the existing 300MW Ugljevik lignite-fired power plant through its subsidiary RiTE Ugljevik. ERS relies on lignite-fired plants for 56pc of its generation, while the final 44pc comes from hydropower plants. The region has very limited non-hydropower renewable capacity installed, though ambitious projects such as the 500MW Nevesinje solar farm have progressed recently.