Know-how from Austria for expansion of hydropower

Austrian companies are showing an interest in the construction and development of hydroelectric power stations in Bosnia-Herzegovina. Only a third of the country's water power potential is currently utilized. New regulations are designed to remove some of the bureaucratic hurdles for foreign investors.

Water energy currently meets one tenth of total demand

Mountains, deep valley and countless rivers - this describes the land ape of Bosnia-Herzegovina in a nutshell. Features that may sound disadvantageous for many branches of industry are a paradise for champions of renewable sources of energy, and in particular water power. Nevertheless, this source of energy meets just one tenth of the entire Bosnian demand. The government in Sarajevo has plans to change this in the future, especially with the assistance of Austrian investors.

Increased utilization of water potential

At the invitation of the Austrian Foreign Trade Office in Sarajevo, in mid June a study trip to Bosnia-Herzegovina was arranged for Austrian companies specializing in the construction and equipping of hydroelectric power stations. "We estimate that there are excellent opportunities for Austrian companies, as they have the necessary know-how. Bosnia-Herzegovina not only intends to make greater use of its hydroelectric potential, but also to allow private operators in," Austrian deputy trade delegate Ulrike Straka explained to wieninternational.at.




Since October 2006, Austrian Power & Enviroment Technology GmbH (APET) has been assisting the Bosnian energy company Elektroprivreda BiH with the construction of four hydroelectric power stations with a total energy output of on 200 megawatts and an investment volume of 800 million euros. According to the Bosnian Ministry of Energy, the country has the potential for 356 large and small hydroelectric power stations.

First power station built in 1895

Before the war Bosnia-Herzegovina was the tail light of Europe, generating a mere 2,400 megawatts of electricity a year from hydroelectric power stations, although the country has a long-standing tradition with this type of electricity supply. The first power station was constructed on the Pliva River in the north-west of Bosnia as long ago as 1895 under Austrian administration, and had an output of seven megawatts. The damage to the infrastructure caused during the war has now been repaired, and now it is time to develop this source of energy.

By 2020: 20 per cent of electricity from water power

The goal is to meet 20 per cent of the country's electricity demand from water power by the year 2020. Due to the existing nature of the terrain, the greatest potential for development is for so-called mini hydroelectric power stations with capacities in excess of 10 megawatts. A total of 120 licences for new mini hydroelectric power stations have been issued since the beginning of 2006.

Bureaucratic hurdles to be removed

Several Austrian companies bemoan the fact that the bureaucratic hurdles are a major obstacle to investment in this field. These are attributable to the complex administrative structure of the country between nation state and two "entities", Republika Srpska and the Federation of Bosnia and Herzegovina. However, the expansion of water power is one of the rare themes on which the politicians of both entities are entirely in agreement with one another. Several legal initiatives are designed to make investment and development easier in the future.

Uniform energy market in south-eastern Europe

An energy summit of the countries of south-eastern Europe was held in the Croatian capital Zagreb at the end of June. The purpose of the meeting was to channel efforts to harmonize the energy market of the entire region and integrate it into the EU energy market. Russian President Vladimir Putin was one of the participants at the summit. Russian energy concerns are already investing heavily in south-eastern Europe, in the modernization of several power stations in Bosnia-Herzegovina, for instance.




"According to the expert estimates, Bosnia-Herzegovina could produce three times as much energy as it does at the present time by constructing new power stations and modernizing existing ones," explained Nebojsa Radmanovic, chairman of the Bosnian presidium in Zagreb.