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INDICATORS

US Dollars amount of Bankable Projects Identified:
$21.8 million
Number of Cities Engaged:
1
Number of Deep Dive Actions:
0
Number of Partners Engaged:
3
Number of Trainings Delivered:
1
Is District Energy incorporated in national policy?
No
Has the stakeholder workshop to decide pilot city been completed?
N/A

Why Bosnia and Herzegovina?

Major winter air pollution from district heating and individual heating solutions have been the main impediments for Banja Luka, a city with a district heating utility company near financial collapse due to significant debts for heavy fuel oil purchases. Municipal governments, like that in Banja Luka, want to remedy these kinds of financial difficulties but can need technical support such as strategy, independent assessments and finance for early-stage feasibility assessment to overcome barriers. Presentations from partners and champion cities at the 2015 UN Environment-IFC workshop on district heating in Tallinn, Estonia, built interest in the region, and particularly for Banja Luka, to join the Initiative and seek support in identifying tailored solutions and leveraging investments.

The initiative in Bosnia and Herzegovina

UN Environment engaged the partners of the Initiative, including European Bank for Reconstruction and Development (EBRD), to develop a tailored approach to support the City of Banja Luka. Together with UN Environment, the City submitted a funding proposal to the Climate Technology Centre and Network (CTCN). The Initiative and CTCN proceeded to develop a neutral assessment of the city’s district heating system and its potential, with partners engaged as reviewers to ensure projects proposed in the assessment would be primed for investment. The success of this neutral approach led EBRD to commit funds and, alongside UN Environment and CTCN, to develop a full feasibility study of the City’s district heating system. This study, adopted by the City Council, recommended investments in biomass boilers and large-scale efficiency improvements that would save $1.8 million each year and take the utility from a negative balance sheet to earning $1 million a year, simply from reduced fuel use, and boosting renewables from 15% to over 90% and cutting CO2 by 68%, NO2 by 88%, and SOX by 94%.

Partnership

National Steering Committee N/A

National Partners

  • University of Banja Luka, Faculty of Natural Sciences

  • Served as a National Designated Entity and Focal Point for CTCN

  • Ensured that relevant ministries, UNFCCC focal points, private sector, civil society, and academia representatives are involved

  • Ministry of Spatial Planning, Civil Engineering and Ecology of Republika Srpska

  • Ensured that the work done in Banja Luka reflects national circumstances and priorities and is coordinated with other processes that address climate change at entity level

Expert Working Group

Expert Working Group for Bosnia and Herzegovina is a group of partners from the Initiative’s global network and includes EBRD, Thermaflex, ENGIE, Tractabel, King&Spalding, Dalkia, Danfoss, Veolia, World Bank. Examples of how our partners contribute to the development of district energy systems in Bosnia and Herzegovina is described below.

EBRD

  • Provided a loan of $10.3 million to the City of Banja Luka to construct a new $21.8 million biomass district heating plant

  • Provided technical data, analysis and previously undertaken feasibility studies in selected cities in Eastern Europe

  • Reviewed in detail the assessments in Banja Luka

  • Co-financed a feasibility study in Banja Luka with UN Environment and CTCN

Veolia

  • Provided substantive technical input and review of the assessments in Banja Luka

Key achievements to date

(work in progress)

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