The recent adoption of the rulebook on renewable energy communities in the Republic of Srpska is a big step in enabling citizens, local authorities, and businesspeople in Bosnia and Herzegovina to join forces and produce electricity for their own needs. It was a key step in introducing citizen energy. The concept is a great opportunity for the Balkans, because it can provide many benefits like lowering bills for consumers, and a sustainable energy transition, according to Damir Miljević, a member of the Regional Center for Sustainable Energy Transition (RESET) from BiH.

The new rulebook on renewable energy communities in the Republic of Srpska, one of the two entities making up Bosnia and Herzegovina, defines the activities of renewable energy communities (REC).

Energy transition consultant Damir Miljević explained to Balkan Green Energy News that REC refers to the production of electricity from renewables, while citizen energy communities (CEC) include all types of energy. The rulebook adopted by the Republic of Srpska, in his words, is the first in the region. It is focused on enabling the production of electricity for self-consumption (prosumers) primarily from renewable energy sources such as solar, wind, and hydro energy.

Energy communities are an opportunity for citizens and businesspeople lacking suitable roofs for photovoltaics

He says the rulebook finally created the conditions at the local level – where the energy transition is supposed to be conducted in the first place – for citizens, local authorities, and businesspeople to join forces and produce electricity by installing a facility together. They can use some of the produced electricity for their own needs and inject the rest into the grid.

Citizens and small entrepreneurs who don’t have suitable roofs for solar power plants and municipal authorities with many roofs at their disposal as well as their own land can jointly finance and use such facilities. They will benefit both on the individual and collective level, Miljević pointed out. Without the communities framework, it wouldn’t be possible, in his opinion.

“In addition, conditions are created through RES communities to cede a part of the energy that the community’s facility generates, if the members of the community agree, to vulnerable categories of the population, contributing to the fight against energy poverty that way,” said Miljević, who is among the speakers at the upcoming Belgrade Energy Forum 2025 (BEF 2025).

Miljević: Elektroprivreda Republike Srpske needs to do its part

The rulebook’s entry into force enabled citizens, local firms and local communities to establish renewable energy communities, Miljević said and added that the only serious remaining obstacle is the refusal of government-owned power utility Elektroprivreda Republike Srpske (ERS) to sign new supply contracts.

Prosumers in the entity can’t fully exercise their rights, despite an order from the Regulatory Commission for Energy of the Republic of Srpska, as they haven’t yet received the new supply contracts from ERS, he pointed out.

Citizen energy is a great opportunity for Balkan states

Miljević stressed that rulebooks are among the steps in introducing citizen energy. Miljević noted that the other parts of BiH haven’t established regulatory frameworks. The Brčko District has no bylaws, while the Federation of BiH has adopted the rules for renewable energy communities, but hasn’t simplified its rules for connecting prosumers and the communities to the grid.

Production onsite for consumption should become priority in energy policies and for decarbonization efforts in the Western Balkans

In Miljević’s opinion, the resistance is enormous and partly caused by the lack of recognition of the importance and role of citizen energy in countries such as the Balkans.

In contrast to developed countries – for instance, household consumption in the European Union has a 25% share in total final electricity consumption – in BiH and Serbia it is 42%, and in Montenegro it amounts to around 50%, he noted.

It means the concept of producing for consumption onsite should be a priority in energy policy and for decarbonization efforts in the Western Balkans, Miljević stressed. It implies putting solar panels on roofs on a significant scale, which is the essence of citizen energy, he added.

Citizen energy isn’t a priority in domestic and international policies implemented in the region

In addition to reducing electricity bills for customers, the concept contributes to reducing distribution and transmission losses and required investments in new grid capacities and new large power plants, and improves the security of supply and energy independence of a country, according to Miljević.

Citizen energy, in his words, is the only solution for a safe and sustainable energy transition and decarbonization of domestic power consumption, but unfortunately it isn’t a priority in domestic and international policies implemented in the region.

The lobbying effect of investors in the market shouldn’t be underestimated either, nor the fear and resistance within the politics and state-owned power utilities to the decentralization, democratization, and demonopolization of power generation that citizen energy brings, Miljević concluded.