Page 86 - SE Outlook Regions 2023

Tuzla power plant, Bosnia has focused on building more renewable
energy facilities.

Despite that, Bosnia, the sole power exporter in the Balkans, might be
forced to stop selling electricity abroad, particularly during the winter
months, as local citizens are switching to electricity for heating amid
surging prices for natural gas, firewood and wood pellets. The country
is subsidising electricity prices for households, which makes the costs
much lower than on the international markets and this is becoming the
preferred method of heating.

As an attempt to resolve the problem, Bosnian power distributor
Elektrokrajina Banja Luka has proposed to the authorities and utility
Elektroprivreda RS (ERS) to start subsidising heating using biomass,
after many apartment blocks in the city of Banja Luka cancelled their
biomass heating accounts due to rising bills.

3.2.5 Construction

Construction sector in Bosnia has been on a downward trend since the
second quarter of 2022 and fell by 0.8% y/y in the first nine months of
the year, according to statistics office data. Civil engineering has been
rising, by 2.9% y/y in January-September, but building construction fell
by 5% y/y.

At the same time, construction of new dwellings increased by 2.4% y/y
in the first nine months of 2022 to 1,911. The number of uncompleted
dwellings at the end of the third quarter of 2022 was 5,358, up by
17.4% y/y.

Meanwhile, the state-owned Autoceste FBiH has been actively working
on road construction tenders. In November 2022, the company signed
a €167.1mn deal with local Euro-Asfalt for the construction of a section
of the pan-European Corridor Vc. Euro-Asfalt will build the section
connecting the Putnikovo Brdo tunnel to the Medakovo interchange.
The construction works should be completed within 24 months.

3.2.6 Major Sectors

Bosnia's economy relies mainly on electricity generation, mining and
the processing sector.

Bosnia is the sole electricity exporter in the Balkans. Traditionally, the
country exports about 25% of its electricity, which is mainly produced by
local coal-fired and hydropower plants. Two thirds of the exports are to
Croatia, Serbia and Slovenia. However, in 2023 the exports might be
hampered by increased domestic consumption.

86 SE Outlook 2023 www.intellinews.com