ENERGY DATA BIH

Energy sector in general       The operation of energy market also determines the conditions of the environment in which commercial companies work, and thus this market affects the overall reconstruction of economy.   Under the SAA (Stability and Association Agreement),the cooperation in this area will reflect the principles of market economy and the European Energy Charter Agreement, and   will develop in the direction of gradual integration of the European energy market. This cooperation will likely focus on formulation of energy policy, improvement of infrastructure and development of energy resources, and energy savings. From the standpoint of the SAA, the matter of the Power III Project is of particular importance.  Present status   Energy consumption is a significant indicator of the living    standard.          In 2000, the average consumption of energy in the   world was about         70 GJ per capita. In developed countries it reached 236 GJ/capita, and in Bosnia and Herzegovina was about 45 GJ per capita, which clearly indicates that it was significantly below average. Power consumption per capita     in BiH is also lower than the world average and in 2000 it amounted to 1,915 kWh/capita; the world average was 2,343 kWh/capita, and the average for OECD countries amounted to 8,089 kWh/capita. This is another clear indication that some BiH inhabitants live below the general poverty line.    The level of energy consumption in BiH before the war (1991) was          about 73 GJ per capita, which exceeded the world average                    (about 69 GJ/capita).                                One of the indicators of the efficiency of energy utilization in a country       is   the energy intensity ratio, which represents the ratio of                    energy  consumed and the GDP. In 2000, on average, 10.14 GJ was      consumed to produce 1000$ of GDP on the world level. In the same       year, developing countries used 22.57 GJ for 1000$, and in BiH 30.1 GJ     was consumed for generation of the same level of revenue.1 1 Data for Bosnia and Herzegovina for both energy consumption and           energy intensity should be taken  with a degree of caution. Reliable data for       BiH are not available, as no institution consolidates energy-related data,           and, even where some data is collected, it tends to be incomplete.                       In comparison, in the USA, with the energy intensity factor of 10,9 GJ/1000       US$, it is estimated that the consumption in the energy sector represents a           bout 6,1 percent of GDP (i.e. 11,7% if equipment costs are included); in the        EU countries, the energy intensity is about 7,55 GJ/1000US$, and the           energy market is estimated at about 4,75 percent of its GDP. This data points to the conclusion that in BiH, with the existing level of energy intensity, more than 20 percent of GDP is spent in the energy sector. Such a high share of the energy sector in the GDP clearly indicates that the energy sector in BiH requires considerably more attention.   The basic identified sources of primary energy in BiH are coal and hydro-power. In 2001, annual production of energy from those sources in BiH amounted to about 62 percent of the total consumption of primary energy, which indicates that BiH is dependent on the imports of energy, as certain energy sources, for now, can not be replaced with domestic energy    sources. The overall coal reserves in BiH is estimated at 3,856 million tons (excluding the reserves in Ugljevik, Gacko and Livno), of which              1,330 tons are brown coal reserves and 2.526 tons are lignite deposits.       Off-balance sheet reserves are estimated at 905 million tons                          (224 million tons of brown coal and 678 million tons of lignite). The total hydro-power potential is estimated at 22,050 GWh annually, i.e.                     at 6,126 MW of installed capacity Preliminary research surveys of oil and gas, which were interrupted by      the war, had indicated the    presence of promising deposits on a number of    sites in certain areas of BiH. Information about this research is not publicly available (although the off-balance sheet reserves are estimated       at about 50 million tons of oil, and less than 10 percent of potential       deposits has been surveyed) and it is not known what the future plans      are regarding exploration    of oil deposits. Depending on the results of       the preliminary research, these should continue, but, for now, liquid fuels and natural gas need to be imported. Potential for exploitation of geo-thermal energy, wind energy, solar     energy and bio-mass energy have    not been sufficiently explored, but     the share of these energy sources in the overall consumption will certainly remain modest, as is the case in the world, where it is projected that in 2020 the share of all renewable sources (including hydro-power, which holds        the most significant share) will amount to about 7,7 percent. However, the increased use of renewable sources of energy in the world is significant      and the their potential and feasibility of their use should be analyzed.   The bulk of coal (about 70% in 1990, more than 90% in 1997 and about    78% in 2001) is used for power production. Taking into account the  economy of coal exploitation, as well as the existing efficiency of the transformation of coal energy into other forms of energy, a part of coal      used in the production of electricity could be reduced in comparison with   the existing situation. The present level of consumption of oil and gas is significantly lower than the pre-war consumption. The consumption of oil   and gas should rise once the economy revives. It will remain necessary       to import oil in the coming years. The imports of petroleum products and    the processing of oil will depend on the resolution of political issues in        BiH, as the processing capacities in the country are sufficient for virtually  the   total of consumption of petroleum products in the country. Current gas consumption is significantly lower than in 1990, again due to     the poor conditions in the industrial sector. Due to the unfavorable      natural  gas consumption mix (relatively high share of heating and   household consumption), the dynamics of consumption are also unfavorable (winter consumption is considerably higher), resulting in increased prices       of natural gas. In addition, gas is is procured over only one pipeline           and from one supplier only, which makes supply stability an issue. The problem of storing oil and, possibly, natural gas, has not been               resolved, although some solutions for gas storage facilities exist. In the EU countries, the preparations for the increase of oil supplies above the mandatory 90-days supplies are underway. In addition to securing the           flow of oil in case of supply disruptions, these supplies would be used in         case of unpredicted oil price market fluctuations.  The problem of  storing    oil and petroleum products needs to be addressed urgently. Although the level of meeting basic energy needs is rather high in BiH,  the poor still have a significantly more limited access. Most households in BiH are connected to the electric power supply, but that is much less frequent when it comes to natural gas or district heating. The people in lower income categories spend significantly more to satisfy their basic energy needs. In addition, the use of firewood is very widespread in BiH, particularly in poor households.   Read in PDF