Bosnia-Herzegovina and coal

Bosnia and Herzegovina produced approximately 11.5 million tonnes of coal in 2009 which is overwhelmingly used to fuel the four existing major coal-fired power stations. With the reconstruction of the country following the civil war in the early 1990's, the coal industry is expanding. New coal-fired power stations or new units at existing power stations have been proposed to supply electricity to the regional and broader European market. However, as coal production is of brown coal and lignite, only a very minor amount is currently exported.

One review of the Bosnia Herzegovina energy sector stated that "all [coal] mines are facing numerous particular problems, but what they suffer in common is a time lag of funding required primarily for land remediation, infrastructure and equipment maintenance and replacement."

Structure of the electricity industry
Following the 1992-95 civil war, the Dayton Peace Agreement of 1995 established a new constitution for Bosnia and Herzegovina (BiH) – a State made up of two Entities, the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS).

Power generation in BiH is carried out by three electricity companies, Elektroprivreda BiH, Elektroprivreda Republike Srpske (EP RS) and Elektroprivreda Hrvatske Zajednice Herceg Bosne d.d. Mostar (EPHZHB). Of the 3,834 megawatts of installed capacity, 98% is accounted for by the three publicly owned companies.

An energy review of the country states that the three agencies "are independent in decision making, especially on construction of new power plants, and responsible for customer supply in their respective areas of operation. All three electricity companies are in majority owned by the entities (FBiH, RS). In addition, there are other privately-owned companies and initiatives for construction of new generation capacities."

Elektroprivreda BiH
The publicly owned Elektroprivreda BiH currently operates two coal-fired power stations with an installed capacity of 1,165 megawatts (MW) and three hydropower plants with installed capacity of 517 MW. In 2009 approximately 40% of the power generated from the plants was exported. A long term energy supply plan for the government of Bosnia & Herzegovina to 2030 foreshadows a massive expansion of coal power stations. Of the just over 1500 megawatts of new capacity flagged, Elektroprivreda BiH are proposing that 1,150 MW would be from coal-fired plants.

A March 2010 planning document by the Federal Ministry of energy, mining and industry notes that Elektroprivreda BiH states that "our target is to construct new, modern thermal power plants to substitute our old units. We are also focused on construction of new hydro and wind energy facilities in order to increase generation capacities from renewable sources."

Elektroprivreda Republike Srpske (ERS)
Elektroprivreda Republike Srpske (ERS) is a state-owned integrated power company in Republika Srpska. The only existing coal-fired power station it owns and operates is the 300 megawatt (MW) Gacko Thermal Power Plant located near Gacko. The proposed 300 megawatt Gacko Thermal Power Plant Expansion with CEZ was shelved in 2009.

Elektroprivreda HZHB
Elektroprivreda HZHB the shortened name for Elektroprivreda Hrvatske zajednice Herceg Bosne) is a publicly owned power generation, distribution and retailing company in Bosnia-Herzegovina. Elektroprivreda HZHB has promoted the construction of the Kongora Thermal Power Plant, is a possible 2,275 megawatt plant which was estimated in 2007 to cost 1.1 billion euros and be located near Tomislavgrad. Elektroprivreda HZHB estimates that the plant would require approximately 3.6 million tonnes of lignite a year from the as yet undeveloped adjoining Kongora lignite deposit.

Existing coal-fired power stations
There are currently four major thermal power stations in Bosnia and Herzegovina, all of which operate on either brown coal or lignite. These are the:


 * Tuzla Thermal Power Plant is a 715 megawatt (MW) lignite and brown coal-fired power station located near Tuzla. The plant is owned and operated by Elektroprivreda BiH, a publicly owned power utility;
 * Kakanj Thermal Power Plant is a 450 megawatt brown coal fired plant near the city of Kakanj in central Bosnia. The plant is owned and operated by Elektroprivreda BiH;
 * Ugljevik Thermal Power Plant, a 300 megawatt coal-fired power plant located near Ugljevik, in the republic of Republic of Srpska. The plant is owned and operated by RiTE Ugljevik, a subsidiary of Elektroprivreda Republike Srpske; and
 * Gacko Thermal Power Plant, a 300 megawatt lignite fired power station owned and operated by Elektroprivreda Republike Srpske (ERS).

Proposed coal-fired power stations
In 2011 the Foreign Investment Promotion Agency noted that there were seven proposed new coal power stations or expansion of existing plants. These are the:


 * Bugojno 1. In June 2012 the government of the Bosnian Federation, which comprises both the republic of Bosnia-Herzegovina and the Serb Republic, has sought advice from the Middle Bosnia Canton on the possibility of a coal-fired power station near the town of Bugojno. The Bosnian Federation is seeking to develop a new coal mine at Kotezi. A statement issued following a Cabinet meeting of the Bosnian Federation stated that the development of the Kotezi coal mine would only be feasible if a 350 megawatt plant or two 300 megawatt plants were built in the municipalities of Bugojno or Gornji Vakuf/Uskoplje.


 * Kongora Thermal Power Plant is a possible 2,275 megawatt mine-mouth coal-fired power station which has been investigated by Elektroprivreda Hrvatske zajednice Herceg Bosne (Elektroprivreda HZHB), a publicly owned power utility in Bosnia and Herzegovina. The proposed plant has been estimated to cost 1.1 billion euros and be located near Tomislavgrad. Elektroprivreda HZHB estimates that the plant would require approximately 3.6 million tonnes of lignite a year from the as yet undeveloped adjoining Kongora lignite deposit.


 * Stanari Thermal Power Plant is a proposed 300 megawatt lignite-fired power station which is being promoted by a subsidiary of the UK-headquartered EFT Group. The project would source coal from the existing Stanari coal mine, which is operated under a concession by an EFT subsidiary. (Note: the Foreign Investment Promotion Agency lists the project as a 420 MW project when EFT's subsidiary describes it as a 300 MW project).


 * Ugljevik Thermal Power Plant Expansion is a proposed 600 megawatt expansion of the existing Ugljevik Thermal Power Plant. In August 2012 a joint venture company, Comsar Energy Republika Srpska, was formed by Comsar Energy Group (90%) with RiTE Ugljevik (10%), a subsidiary of Elektroprivreda Republike Srpske (ERS). The joint venture has been formed to develop a coal mining project and to add two new 300 megawatt units to the existing power station.


 * Kakanj Thermal Power Plant Expansion, is a 300 megawatt expansion which has been proposed by Elektroprivreda BiH. China National Electric Engineering CO., Ltd (CNEEC) has expressed interest in the project. In May 2011 Elektroprivreda BiH stated that CNEEC had gained Chinese government and banks' support to finance the project. It was also report that construction of the new unit was "planned in mid-2013". ;


 * Tuzla G7 is a proposed 450 megawatt expansion of the Tuzla Thermal Power Station. In May 2011 EPBIH stated that CNEEC had expressed interest in the project. However, Reuters noted that the "Swiss energy firm Alpiq (ALPH.S: Quote) has bid to become a strategic investor" in the plant.


 * Gacko Thermal Power Plant Expansion by CEZ with Elektroprivreda Republike Srpske (ERS). In 2006 CZE reached an agreement with ERS to form a joint venture company, Nove Elektrarne Republike Srpske (NERS), which would upgrade the existing plant, built a second unit at the power station and expand the nearby Gacko coal mine. In return for investing €1.5 billion in the project, CEZ gained a 51% stake in the new joint venture company. However, In January 2009 CEZ pulled out of the deal stating that it was because of "repeated breach of the implementation contract by its partners in Bosna and Hercegovina."

One project not mentioned by the Foreign Investment Promotion Agency is the Kamengrad Thermal Power Plant, a proposed 430 megawatt brown coal fired power station. It has been proposed that the power station, comprising two 215 megawatt units, be built near the Kamengrad coal mine which is located near Sanski Most.

Existing coal mines
The Bosnia and Herzegovina Foreign Investment Promotion Agency identifies the existing coal mines as being:


 * Banovici coal mine is a brown coal mine working three open-cut deposits -- Čubrić, Turija and Grivice -- as well as the underground Omazići deposit. Coal from the mine is used to supply Units 1-7 of the Tuzla Thermal Power Plant; The mine is owned and operated by the coal mining company RMU Banovici.
 * Durdevik coal mine is a brown coal mine which is working the Višća II and Potočari open cut deposits and the underground Durđevik deposit. Coal from the mines is used to supply Units 1-7 of the Tuzla Thermal Power Plant;
 * Kakanj coal mine is an open cut brown coal mine working the Vrtlište deposit as well as an underground mine working the Haljinići deposit. Coal from the mine is used to supply the Kakanj Thermal Power Plant.
 * Zenica coal mine is a brown coal mine working three underground deposits: Stara jama, Raspotočje and Stranjani. Coal from the mine is used to supply the Kakanj Thermal Power Plant.
 * Breza coal mine is an underground brown coal mine working the Sretno and Kamenice deposits. Coal from the mine is used to supply the Kakanj Thermal Power Plant.
 * Bila coal mine is a brown coal mine comprising both underground and open cut workings in the Grahovčići deposit. Coal from the mine is used to supply the Kakanj Thermal Power Plant.
 * Kreka coal mine, comprising working two open cut lignite deposits as well as two underground deposits. Coal from the mine is used to supply Unit 7 of the Tuzla Thermal Power Plant;
 * Livno coal mine is an open cut lignite mine working the Tušnica deposit. Coal from the mine is used to supply the Kakanj Thermal Power Plant.
 * Gracanica coal mine, is an open cut lignite mine working the Dimnjače deposit. Coal from the mine is used to supply the Kakanj Thermal Power Plant.
 * Ugljevik coal mine is an open cut brown coal mine working the Bogutovo Selo and Ugljevik-East deposits. Coal from the mine is supplied to Ugljevik Thermal Power Plant;
 * Gacko coal mine is an open cut lignite mine which comprises workings at the Gračanica and Gacko deposits. The Gacko mine supplies 1.8 million tonnes of lignite a year to the nearby Gacko Thermal Power Plant.
 * Stanari coal mine, an open cut lignite mine. EFT Rudnik i Termoelektrana Stanari d.o.o., a subsidiary of the EFT Group which owns and operates the mine, is proposing to build the 300 megawatt Stanari Thermal Power Plant.

Potential coal mines
The Bosnia and Herzegovina Foreign Investment Promotion Agency identifies potential coal mines as being:
 * Kongora lignite deposit for the proposed Kongora Thermal Power Plant;
 * Kotezi coal mine to supply the proposed Bugojno Thermal Power Project;
 * Kamengrad coal mine, a potential brown coal mine near Sanski Most to supply the proposed Kamengrad Thermal Power Plant; and
 * Miljevina coal mine, a potential open cut and underground brown coal mine in Republika Srpska.

Related SourceWatch Resources

 * Europe and coal

External resources

 * Bechtel Consulting, Coal and Thermal Power Cost Study for Bosnia and Herzegovina, United States Agency for International Development, August 1997.
 * International Monetary Fund, Bosnia and Herzegovina: Poverty Reduction Strategy Paper--Mid-Term Development Strategy, IMF Country Report 4/114, International Monetary Fund, April 2004. (Pages 227-234 give an overview of the BiH energy sector, especially the electricity industry. Page 235 has some historical background information on the coal sector.)
 * Joško Jenko, "Power Sector Development: Background Paper, World Bank – 4th Poverty Reduction Strategies Forum, Athens, Greece, June 26-27, 2007.
 * Energy Charter Secretariat, Bosnia and Herzegovina: Regular Review of Energy Efficiency Policies of Bosnia and Herzegovina (2008), August 2008.
 * Federal Ministry of energy, mining and industry, "Construction of Power Plants in Federation of B&H: Catalogue of Power Plants: Priorities", Government of Bosnia & Herzegovina, March 2010.
 * Foreign Investment Promotion Agency, Bosnia and Herzegovina Investment Opportunities: Bosnia and Herzegovina Energy Sector", September 2011.
 * Energy Charter Secretariat, In-Depth Review of Energy Efficiency Policies of Bosnia and Herzegovina (2012), January 2012.