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Energy Community: extending operations of coal-fired plants of BiH is in breach of obligations

The Parliament of the Federation of Bosnia and Herzegovina endorsed the extension of Tuzla 4 and Kakanj 5 coal-fired thermal power plant operations past the allowed time limits, namely until 2028.

“Such a unilateral decision is a clear breach of the obligations of Bosnia and Herzegovina under the Energy Community Treaty”, the Energy Community Secretariat said.

The two plants concerned are already at the end of their 20,000 hours limit. The Secretariat emphasised that the operation beyond this time limit has a negative impact on the interest of all citizens in Bosnia and Herzegovina as air pollution is responsible for severe health and environmental damages, including premature deaths due to respiratory diseases and also cause extremely high costs that societies have to bear as a whole.

Bosnia and Herzegovina is also breaking rules with the planned new lignite-fired power plant in Tuzla 7 which is financed by a loan from the Chinese Export-Import Bank. The Ministerial Council decided last year that the decision of the State Aid Council was in breach of Article 18 of the Energy Community Treaty, as the guarantee was not issued on commercial terms of TTP Tuzla 7.

The Secretariat informed that the country is expected to take measures to rectify the breach of the Energy Community acquis and notify the organisation by 1 July 2022.

The Energy Community Secretariat has opened a case against Bosnia and Herzegovina for failing to meet the ceilings for air pollutants that the country set in its National Emission Reduction Plan.

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