EPCG ATTENDED MOSTAR ECONOMIC FORUM: RAPID ENERGY TRANSITION MUST BE FOLLOWED BY ADEQUATE LEGISLATION

Chief Executive Officer of our company, Nikola Rovčanin, participated in the panel discussion “Security of electricity supply amid decarbonisation and global crises”. His collocutors were Tomislav Radoš, PhD (introductory speaker, vice-chair of the Croatian Chamber of Commerce for Industry and Energy), Zoran Vuković PhD (executive director for Public Supply in Elektroprivreda Republike Srpske) and Miroslav Nikolić (development manager for Renewable Energy Sources and Energy Efficiency in Elektroprivreda Hrvatske Zajednice Herceg-Bosne).  

The key topic of the conference raised the question if there will be enough energy-generating products and whether the companies with strong gas dependence and electricity supply, in general, will have sufficient resources for smooth operation and undisturbed generation.

Mr Rovčanin informed the attendees about the circumstances of EPCG, pointing out the development projects of the company. “Even before the global energy crisis begun, many energy companies faced major problems and extremely short timeframes in terms of implementing the decarbonisation process, which primarily applies to the states in our region, and EPCG is no exception to this”, Mr Rovčanin emphasised.

Mr Miroslav Nikolić, development manager in EP HZHB was amongst the panelists. He pointed out that this company, as well as all other members of energy sector, invests efforts in response to the ongoing challenges, although this company in particular does not rely on fossil fuels. EP HZHB manages seven hydropower plants and one wind farm so they depend on biology, but chances are that this year will be unfavourable one in that aspect as well.

“I believe that, in the long run, we cannot maintain this situation and, sadly, the increase in electricity prices is bound to happen”, Mr Nikolić said.

The conclusion wraps up the importance of achieving the two objectives: price safety and acceleration of the transition, the first step being to accomplish the balance between these two objectives. The way which would ensure faster and more efficient renewable energy was also the subject of discussion.

While increase in price for end customers has been the subject widely discussed throughout the region, EPCG has not considered this issue so far, thanks primarily to the fact that the structure of generating units ensures that operation of TPP Pljevlja highly decreases dependence of the total electricity generation on climate conditions.   

“Yet again, until we build adequate replacement capacities, the importance of the insistence on ecological retrofitting of TPP Pljevlja has been confirmed in this way as well as the extension of this facility’s lifetime. Beyond any doubt, our international commitments and global trends are clear, having in mind we do not have the luxury of performing the transition based on shutting down the facilities prior to construction of new alternative sources, because this would not be responsible towards both the company, the state and the citizens; after all, it is only energy independence that guarantees the stability without which there are no prerequisites for economic development“, said Mr Rovčanin. 

During the discussion about legal regulations applied by the regional states, collocutors have agreed that energy sector development requires maximum support from state authorities in each segment, particularly that one related to the adjustment of legal regulations in terms of the ongoing energy transition.

Therefore, speaking about construction of facilities that are necessary for energy transition in Bosnia and Herzegovina, Mr Zoran Vuković, PhD (Elektroprivreda Republike Srpske - ERS, Bosnia and Herzegovina’s state-owned power utility) said that the transition is highly difficult because Bosnia and Herzegovina takes 173rd position out of 190 countries, according to the report published by the World Bank on the ease of getting permits, which is why one should wonder if the legal procedure covering this issue is appropriate. 

Montenegro occupies the 40th place on this list and is definitely in a more favourable position, although support provided to the energy sector development could be better, especially because the need for electricity will increase so that the speed and success of energy transition will considerably depend on readiness of competent authorities to adjust legal regulations to the modern requirements of economy and citizens.