Kopač: If BiH joined the EU now, all its power companies except HZHB would immediately go bankrupt

NEUM, (Patria) - Director of the Energy Community Secretariat Janez Kopač, at the Energy Summit held in Neum, stated that he always gladly comes to Neum, but that it is slowly becoming uninteresting, "because every year the story is the same, and that is that reforms are needed, which are all written down, but not implemented, nor have the laws been adopted."

"Since we are talking about transition, I will not talk much about Bosnia and Herzegovina's violations within the Energy Community. Today, a new border is being drawn between developed and underdeveloped countries. It used to be known that the western part was more developed, we in Eastern Europe a little less developed, Africa was underdeveloped, etc. Today, it is completely different. Today, countries that are moving very quickly towards decarbonization are becoming globally more competitive. These are China, Japan, California, the EU, not all of it, mostly that northwestern part. Countries that lag behind in this will be underdeveloped in the long run," Kopač pointed out.

"And what is happening is that today we have a technological revolution in the world that includes energy efficiency measures, all smarter devices that consume less and less, and of course, the transition to renewable energy sources. Someone has to pay for this technological revolution. This is paid for through subsidies. The EU, at least, has introduced these subsidies very smartly by subsidizing renewable energy sources, plus it has burdened coal with the price for CO2 emissions," said Kopač.

He explained that in the General Secretariat of the Energy Community, they have made a study in recent weeks on how such a mechanism would work if the same legal framework applied within the Energy Community, i.e., in BiH, as it applies in Croatia, Slovenia, or the EU, meaning the burdening of coal with a price.

"Then, on an annual basis, we would collect 240 million euros that would have to be allocated solely for renewable energy sources for the purpose of energy efficiency. By not collecting this, coal production is indirectly subsidized. If Bosnia and Herzegovina were to join the EU now, all its power companies, except for HZHB, which depends on water, would go bankrupt overnight! The most efficient thermal power plant, Stanari, would have a loss of 20 million euros annually. It would close its doors immediately. This is a gap that is widening, and it will become increasingly difficult to catch the EU train if BiH does not think about this now," said Kopač.

He emphasized that BiH must first consider introducing some tax on CO2 emissions, which could be small, but directed towards energy efficiency and renewable energy sources, and to help regions where coal is on the path of transformation.