Bosnia and Herzegovina: Abolishment of SHPPs subsidies

, SEE Energy News

In order to de-stimulate further development of small hydropower plant (SHPP) projects, mainly through the abolishment of feed-in tariffs for such facilities, the Government of the Federation of Bosnia and Herzegovina (FBiH) is preparing a set of regulatory changes.

The statement from the Government said that, as of 1 January 2021, subsidies for SHPPs will no longer be granted and funds allocated for this purpose will be transferred to other means of electricity production from renewable sources. Other adopted measures include mandatory application for environmental permit for projects above 150 kW, establishment of expert commission which will evaluate these applications and required minimum flow of water for the construction of such facilities.

The Government also noted that, in the past three years, only one permit for SHPP construction was issued per year, while in 2014 and 2015 number of issued permits exceeded 10.

In June, The House of Representatives of the Federation of Bosnia and Herzegovina passed a decision to completely ban the construction of small hydropower plants.