This is a notable step by the World Bank to support Bosnia and Herzegovina’s ongoing energy transition. They authorized a loan of €79.90 million ($90.5 million) and a grant of €2.89 million ($3.2 million). On May 1, the Board of Executive Directors approved this financial assistance. It seeks to implement the country’s National Energy and Climate Plan, facilitating access to the national grid to about 51% of the population, while encouraging sustainable energy solutions.
Bosnia and Herzegovina’s National Energy and Climate Plan would do well to prioritize the needs of its citizens. It works to improve environmental sustainability. The plan mainly focuses on bridging a national grid connectivity gap for urban centers. It has recently expanded its work off-network, bringing solutions such as solar mini-grids to remote communities. This two-pronged approach is well suited to reach the other half of the continent’s population—literally. Second, it ensures wider energy access across the whole region.
Over a decade, 18 banks are committing an initial $30 billion to the collective effort. Moreover, private institutions would be required to provide at least $10 billion more. This historic funding will help Bosnia and Herzegovina move forward with priority infrastructure initiatives. Together, these initiatives intend to reduce GHG emissions and accelerate the decarbonization of the electricity sector by 2050.
An example of such an initiative is the closing of underground works in Zenica. It would build renewable energy systems to be colocated at the Banovići and Kreka mines. Through these projects, DOE anticipates making our energy landscape more sustainable, resilient, and environmentally friendly across the country.
Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro, underscored the significance of this pilot project, saying
“This new project is an opportunity to boost Bosnia and Herzegovina’s energy security while supporting communities, making sure no one is left behind.”
As Bosnia and Herzegovina commits to its energy transition goals, it aims not only to enhance its energy security but to contribute to global efforts in combating climate change. By focusing on renewable energy sources and reducing dependence on fossil fuels, the country seeks to establish a more resilient energy infrastructure that benefits all segments of society.