1. Regulatory recap
The first half of 2025 saw many regulatory and legislative developments in the energy sector of Bosnia and Herzegovina. We draw attention to several of the most important developments:
- the State Electricity Regulatory Commission of BiH has approved amendments to the Grid Code and the Market Rules introduced by the Independent System Operator back in April;
- the RS’ Regulatory Commission for Energy (RERS) has adopted the regulatory framework for Renewable Energy Communities;
- the Operator for Renewable Energy Sources and Efficient Cogeneration set-up a programme for co-financing household prosumers;
- the FBiH Government has initiated a formal procedure for development of a new FBIH energy strategy.
It is also worth mentioning that the draft of the new Law on Electricity of Bosnia and Herzegovina is entering into legislative procedure in the Parliamentary Assembly of Bosnia and Herzegovina.
2. Grid Code and Market Rules updates
In April, the Independent System Operator in Bosnia and Herzegovina adopted a new Grid Code, introducing important provisions related to electricity storage systems. The Grid Code defines the electricity storage and storage systems in a manner consistent with the definition outlined in the Directive (EU) 2019/944. It further sets out technical requirements for storage systems connected to transmission and distribution networks, including frequency stability, interfaces for active power management, automatic reconnection, data exchange, voltage control capabilities, etc.
New Market Rules include electricity storage as a distinct activity requiring a license from the regulatory authority in BiH (it is worth noting that, while storage is formally regulated as a separate energy activity in the Federation of BiH, this is not yet the case in Republika Srpska). The Market Rules provide that, even if licensing regulations do not explicitly define a license for electricity storage, storage activities may still be conducted by holding combined licenses for production, trading, and supply. It remains unclear how this will work in practice and whether it may lead to regulatory challenges. Therefore, one should soon expect amendments to the licensing regulations that would recognize a separate license for electricity storage activity.
3. Regulatory framework for Renewable Energy Communities in Republika Srpska
Republika Srpska has officially enacted the Rulebook on Renewable Energy Communities (“RECs“) in April, thereby creating the regulatory framework for collaborative production and consumption of renewable energy (“Rulebook“).
REC establishment
A REC is defined as a legal entity established primarily to serve the energy needs of its members, comprising individuals, companies, public enterprises, and local authorities, within a designated geographic area. Practically speaking, the establishment of an REC involves two distinct stages.
- First, the entity must be incorporated in accordance with the legislation governing the chosen legal form. While EU directives encourage and prioritize non-profit organizational forms and even recommend excluding profit-oriented forms the Rulebook does not exclude profit-oriented entities from acting as a REC. This broader approach is also reflected in the RS Renewable Energy Sources Act, which recognises RECs engaged in electricity supply as a market activity, as well as those performing other energy activities on a commercial basis.
- Second, formal REC status is granted by the Regulatory Commission for Energy of Republika Srpska (RERS). The application to RERS must contain, inter alia, the entity’s name and legal form, a list of members with their respective residences or registered offices, a description of the planned project, and supporting documentation demonstrating compliance with the eligibility criteria. Upon verification of these requirements, RERS issues a formal decision granting REC status.
REC–DSO Agreement
REC and the Distribution System Operator (DSO) enter into an agreement that defines the issues of management and maintenance of the distribution network within the community, administration of production calculations, energy billing between Community members, and other issues of importance for network usage and REC administration.
Rulebook Framework vs. Energy Community Guidelines
The Rulebook and the RS Renewable Energy Sources Act provide a regulatory framework for RECs that is largely consistent with the Energy Community Secretariat’s March 2024 Policy Guidelines (“Guidelines“), though some differences remain.
With regard to the rights granted to RECs, the Rulebook currently includes generation, consumption, storage, sharing, sale of surplus energy, however, it does not extend to aggregation or the formal performance of distribution as an energy activity.
The Guidelines also emphasize linking effective control over the REC to its members residing in close proximity to the REC’s project, ensuring that benefits remain within the local community. The Rulebook omits such a direct proximity – control requirement, stipulating only that members’ residence or registered seat must be within the host municipality or an adjacent one—loosening the geographic restriction but maintaining a degree of territorial connection.
In terms of governance, the Guidelines call for safeguards such as the “one member, one vote” principle or shareholder caps to prevent dominance by large stakeholders. The Rulebook, however, contains no such provisions, leaving governance structures entirely to the discretion of the REC’s founding act.
The Guidelines recommend that distribution system operators ensure that available grid capacities are accessible to REC. This principle is not clearly reflected in the Rulebook, where the provisions are framed more generally and without an explicit focus on prioritising or facilitating access for RECs.
4. FBiH launches development of the new Energy Strategy
The Government of the Federation of Bosnia and Herzegovina has formally launched the development of its Energy Strategy covering 2025–2035, with projections extending to 2055. This Strategy will establish long–term sector objectives, priorities, and the energy source mix; promote renewables and new technologies; enhance energy efficiency; plan sector investments; and address environmental protection and climate change mitigation. It also aims to encourage market competition, safeguard consumers, and ensure alignment with national strategic policies. The Federal Ministry of Energy, Mining and Industry coordinates this process, which will be conducted under applicable laws and regulations, with completion expected within 14 months from the Government’s adoption of the Strategy’s Terms of Reference.
5. New Co‑Financing Programme for Household Prosumers in FBiH
The recently enacted Programme on Co‑Financing Household Prosumers in FBiH (“Programme“) is intended exclusively for individuals who are (co)owners of residential buildings intended to become “home power plants”. The Programme defines eligibility criteria for one–time co-financing, specifying two categories of beneficiaries:
- I socially vulnerable households, based on the following criteria: (i) annual electricity consumption above 3,500 kWh; (ii) household of three or more members; (iii) technical feasibility for installing a prosumer system; and (iv) applicant receives permanent financial assistance or allowances for personal care. Priority will be given to applicants with recognized civilian war victim status or a disability;
- other eligible applicants, applying through a public call, based on the following criteria: (i) annual electricity consumption over 5,500 kWh; (ii) household connection capacity equal to or lower than the planned installation capacity; and (iii) place of residence matching the planned installation site.
The public call for co – financing should be announced annually by 10 April in at least two daily newspapers in FBiH and on the website of the Operator for Renewable Energy Sources and Efficient Cogeneration.
6. Index of amended regulations
To facilitate reference, we provide below an index of the amended regulations, including direct links to the full texts where publicly available:
- Decision on the Approval and Implementation of the Network Code (Odluka o odobravanju i primjeni Mrežnog kodeksa), Official Gazette of the Bosnia and Herzegovina, no. 28/25 and the Network Code;
- Decision on the Approval and Implementation of the Market Rules (Odluka o odobravanju i primjeni Tržišnih pravila), Official Gazette of the Bosnia and Herzegovina, no. 36/25 and the Market Rules
- Rulebook on Renewable Energy Communities (Pravilnik o zajednicama obnovljive energije), Official Gazette of the Republika Srpska, no. 32/25;
- Decision on the Adoption of the Program for Co-Financing Household-Category Prosumers (Odluka o usvajanju programa o sufinansiranju prosumera iz kategorije domaćinstva), Official Gazette of the Federation of Bosnia and Herzegovina, no. 34/25;
- Decision on the Development of the Energy Strategy of the FBiH for 2025–2035, with Projections until 2055 (Odluka o izradi energetske strategije Federacije Bosne i Hercegovine za period 2025 – 2035. godina sa projekcijom do 2055. godine), Official Gazette of the Federation of Bosnia and Herzegovina, no. 1/25;
Contributed by Nikolina Bajić, independent attorney at law
