Energy Summit Begins: US Ambassador Says Gas Price Must Be Lowered

(Patria) - The 5th Energy Summit has begun in Neum, which will be a meeting place for more than 650 participants and decision-makers in the reform of the energy sector in our country. Introductory addresses were given by the US Ambassador, Eric Nelson, who pointed out that Bosnia and Herzegovina has incredible potential when it comes to the energy sector.

“The country already produces more energy than it needs. New investments in thermal, hydro, and wind power plants will help continue this trend. At this year's summit, leaders will have the opportunity to hear from experts about the reforms needed to protect the environment and help consumers by increasing energy efficiency, reducing consumption, and improving access to natural gas and renewable energy sources,” said Nelson.

He added that unfortunately, the price of gas paid by citizens of Bosnia and Herzegovina is among the highest in all of Europe.

“That is what can and must be changed, which is why reforms are the focus of this summit,” Nelson emphasized.

The US Ambassador to Bosnia and Herzegovina also pointed out that reforms in the natural gas sector have been blocked for years.

“Essentially, this is due to inter-entity disputes. As a result, Bosnia and Herzegovina is under EU sanctions, but it is the consumers who suffer the most,” said Nelson, adding that these reforms will help Bosnia and Herzegovina continue exporting electricity, but also reduce the price for consumers.

German Ambassador Christiane Hohmann noted that this summit brings together politicians as well as experts in this field.

“I would emphasize that the focus will be on energy transition, meaning moving away from fossil fuels towards renewable energy sources and energy efficiency. This is important for the citizens of Bosnia and Herzegovina,” said Hohmann.

UK Ambassador Matthew Field said he hopes this Summit will result in a new reform path for the energy sector.

“It is important to work together on this issue. I am glad that the first Energy Strategy has been adopted,” Field emphasized.

Deputy Head of the EU Delegation to Bosnia and Herzegovina, Khaldoun Sinno, agreed that the Summit will contribute to reform, but stressed that it is important for all levels of government to agree and work towards the goal of the energy community. 

The Prime Ministers of the Federation of Bosnia and Herzegovina and Republika Srpska, Fadil Novalić and Radovan Višković, agreed that energy is the issue of all issues, but also requested certain concessions, specifically understanding for transitional phases. In practice, energy transition represents a systemic shift from conventional energy systems to new systems that involve an increased share of renewable energy sources, greater energy savings, and a more active role for energy consumers.

This is a structural change taking place worldwide and is one of the requirements of EU energy policy. Therefore, Bosnia and Herzegovina must find a path that will enable it to realize its potential as a net exporter of electricity and join regional and global trends in energy transition.

Over the next three days, the 5th Energy Summit will also discuss the status and challenges of the market in energy transition, the biomass potential platform in Bosnia and Herzegovina, reform of the renewable energy incentive system and citizen energy, the importance of energy efficiency, while the last day will be reserved for a discussion on the perspective of the gas sector in energy transition. Additionally, a particularly interesting panel will be on the role of the media in the energy transition process, with the participation of representatives from various sectors and editors from Bosnian media.

The organizers of the fifth Energy Summit are the USAID Energy Investment Activity (EIA) project, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH through the projects “Promotion of Renewable Energy in Bosnia and Herzegovina” and “Promotion of Energy Efficiency in Bosnia and Herzegovina,” and the British Embassy Sarajevo, under the patronage of the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina, the State Electricity Regulatory Commission, the Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina, and the Regulatory Commission for Energy of Republika Srpska.