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Coal plant Kakanj in BiH halts electricity production amid record air pollution

Due to record air pollution levels in recent days, the Municipality of Kakanj requested that the local coal-fired power plant’s activity be reduced to supplying thermal energy for district heating only. The thermal power plant says it has already done so.

After “unprecedented” amounts of pollutants were measured in Kakanj, Mayor Mirnes Bajtarević asked the management of the Kakanj thermal power plant and state power utility Elektroprivreda Bosne i Hercegovine (EPBiH), as well as Federation of BiH Minister of Environment and Tourism Nasiha Pozder, to ensure that the operation of the power plant is urgently reduced to a minimum, only for the needs of the district heating system in Kakanj.

The power plant said that since Sunday, the only block in operation has been Unit 6, which supplies thermal energy for district heating in Kakanj, news portal Akta reported.

Kakanj, the second-largest electricity producer in the EPBiH portfolio, has three operational units with a total capacity of 450 MW. Unit 6 has a capacity of 110 MW.

The municipal authorities said in the statement that, if necessary, it would invite residents to protest in front of the thermal power plant, which is seen as the main culprit for the alarming air pollution levels in recent months.

The local cement plant is urged to stop using alternative fuels

According to BiH media reports, recent sulfur dioxide (SO₂) levels in Kakanj have exceeded all permitted limits, posing an immediate threat to public health.

The municipality also issued a fresh request to the FBiH inspection body to inspect the operation of the thermal power plant, as well as Heidelberg Materials Cement, which has been asked to stop using alternative fuels.

The municipality will also demand a report on the desulfurization project at Kakanj

The municipality said it would demand that the thermal power plant provide a report on the progress and timeline of works on the ongoing desulfurization project, including the expected completion date.

EPBiH is implementing the desulfurization project at units 6 and 7 at Kakanj, hoping to reduce SO2 emissions by about 98.5%. SO2 emissions will be reduced to below 150 mg/Nm3, or nearly 60 times lower than current levels, EPBiH said in October.

Last year, the company was the largest power producer in BiH. Kakanj generated 1,431 GWh or 27% of EPBiH’s output.

One of the largest SO2 emitters in the region

Three years ago, the Energy Community Secretariat opened a case against Bosnia and Herzegovina for failing to shut down two units at the Kakanj and Tuzla thermal power plants despite the expiry of the 20,000 operating hours permitted after January 1, 2018, under the opt-out mechanism.

Kakanj was also mentioned in Bankwatch’s annual Comply or Close report, published in June this year.

According to the report, six power generation units in the Western Balkans exceeded their individual ceilings for SO2 emissions by more than ten times – Ugljevik, Gacko, Tuzla 6 and Kakanj 7 in Bosnia and Herzegovina; Kostolac A2 in Serbia; and Bitola B1 and B2 in North Macedonia.

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Desulfurization project at Kakanj thermal power plant to cut emissions by almost 100%

Bosnia and Herzegovina’s state power utility, Elektroprivreda BiH, is implementing a desulfurization project at units 6 and 7 of the Kakanj thermal power plant. The project is expected to reduce sulfur dioxide (SO₂) emissions by about 98.5%.

Currently, SO₂ emissions from the Kakanj plant amount to around 9,000 milligrams per cubic meter (mg/Nm3). With the construction of a joint desulfurization facility for units 6 and 7, the emissions will be cut by nearly 60 times, to below 150 mg/Nm3.

According to Bosnia and Herzegovina’s state power utility, Elektroprivreda BiH (EPBiH), the project is being implemented in line with Energy Community directives, which prohibit the operation of thermal units without desulfurization and denitrification systems after 2027, as well as with the obligations under Bosnia and Herzegovina’s National Emission Reduction Plan (NERP BiH) and EPBiH’s Energy Transition and Decarbonization Strategy until 2050.

Thanks to previously installed hybrid filters, dust emissions have already been reduced to below 10 mg/Nm3, significantly below the limits set by NERP BiH and EU directives, EPBiH said in a statement. The company also plans to build a denitrification facility to ensure nitrogen oxide (NOₓ) emissions are fully compliant with these regulations.

The denitrification project is valued at EUR 28.1 million

“Although these projects will allow the operation of our units beyond January 1, 2028 – ensuring the production of electricity from our own sources and heat for the town of Kakanj – the most important benefit for us as a socially responsible company will be the one we feel directly, in terms of improved quality of life. Cleaner air is a key factor in protecting public health and the environment, and it also strengthens our relationship with the local community. At the same time, we are ensuring continued operation of the coal mines that supply the power plant,” said EPBiH General Director Sanel Buljubašić.

The desulfurization project is worth BAM 126.4 million (EUR 62.8 million) and is financed with EPBiH’s own funds. The denitrification project will require an additional BAM 55 million (EUR 28.1 million). Upon completion, the Kakanj power plant will be fully compliant with EU directives and ready to operate for the next two decades.

Revitalization of Unit 7 underway

The desulfurization work on the 300-meter-tall chimney is expected to be completed by the end of this year. In parallel, EPBiH is carrying out the revitalization of Unit 7 – an investment worth BAM 80 million (EUR 40.9 million). These works should be completed by the end of May 2026, extending the unit’s lifespan by another 15 years.

Due to these activities, the plant’s current production is around 40% of its full capacity, according to the statement.

Preparations for desulfurization at thermal power plant Tuzla

In an effort to secure continued electricity generation from its coal-fired plants beyond the deadline set by the Energy Community, EPBiH is also preparing a desulfurization project for the Tuzla thermal power plant. The investment is estimated at BAM 170 million (EUR 86.9 million). The evaluation of bids for Unit 6 is underway, while tender documentation for units 4 and 5 is being prepared.

EPBiH’s goal is to cut overall emissions by up to 80% by 2050 by modernizing existing units and increasing generation from renewable energy sources, which will help reduce pollution significantly, improve public health, and protect ecosystems.

Sulfur dioxide emissions remain a major challenge for coal power plants across the Western Balkans. According to Comply or Close, a report by environmental organization Bankwatch, these plants emitted six times more SO₂ in 2024 than allowed, while combined PM and NOx emissions once again exceeded legal limits.

In 2024, Bosnia and Herzegovina’s thermal power plants became the region’s top sulfur dioxide polluters for the first time, releasing a total of 212,840 tonnes, or 17.1% more than in 2023 and 11.3 times above the permitted level.

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Sarajevo rolls out fully digital system to track air-polluting emissions

Sarajevo, the capital of Bosnia and Herzegovina, has developed a register of air-polluting emissions and an information system to track pollutants. The register aims to reduce air pollution in Sarajevo, which very often tops the list of the world’s most polluted cities.

The project to develop the emissions register and the air-pollutant information system for the Sarajevo Canton took two years, according to the government of the Sarajevo Canton. During that period, comprehensive data were collected on various air pollution sources, including home fireplaces, boiler rooms, industry, traffic, and agriculture.

In creating the register, nearly 100,000 individual emission sources were analyzed. The emissions of all pollutants from those sources were calculated in line with the European Environmental Protection Agency (EPA) standards.

The project has created emissions distribution maps for key pollutants

Compared with previous versions, the new register offers significant improvements. It uses the latest methodologies for the spatial distribution of emissions and data verification, complemented by the establishment of a central GIS database and an interactive web portal.

For the first time, the public can compare emissions data for different pollutants on a high-resolution spatial grid (100×100 meters). In addition to the detailed register of emissions, distribution maps for key pollutants, including particulate matter (PM10), sulfur dioxide (SO2), and nitrogen oxides (NOx), are also available.

The information system is set to be publicly available within a month

According to the government, the system allows for the identification of areas with excessive air pollution. A robust emissions register serves as a foundation for strategic financing of projects aimed at improving air quality, including implementing the Strategy for Limiting the Use of Coal and Other Solid Fuels in the Sarajevo Canton (2023-2033), the government added. The strategy was adopted in February 2024.

The new emissions register and air quality categorization map will provide essential data inputs for future planning and strategies across various sectors, including spatial planning, energy, transportation, and healthcare.

Jansson: Air pollution remains one of the most urgent public health challenges in Sarajevo

Birgitta Jansson, deputy head of development cooperation at the Swedish Embassy in BiH, highlighted air pollution as one of the most urgent public health and environmental challenges in the Sarajevo Canton.

“By taking a pioneering step to make environmental data publicly accessible, the canton is enabling transparent, informed, and long-term action toward cleaner air and climate neutrality – and Sweden is proud to support this important initiative,” she noted.

The Prime Minister of the Sarajevo Canton, Nihad Uk, stressed that the new register allows the government to plan measures more accurately, apply for international funding, and make sustainable decisions based on relevant data.

Softić Kadenić: A unique project in BiH

The Minister of Justice and Administration of the Sarajevo Canton, Darja Softić Kadenić, described the project as unique in BiH, since for the first time it introduces a fully digital, accurate, and comprehensive system for monitoring annual emissions into the air.

It is placing Sarajevo Canton among the more advanced European cities, she added.

According to Raduška Cupać, head of the Energy and Environment Sector at UNDP in BiH, the system is more than a technical tool – it is a strategic asset that empowers institutions, companies, and citizens to take concrete steps toward environmental protection.

The register was developed by a consortium of companies Ceteor, E3, and GDI.

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Balkan leaders have to realise new coal plants are a liability, not a gold mine?

Author:  Pippa Gallop, Research Co-ordinator, CEE Bankwatch Network

In April this year, the EU proved that whatever difficulties it might be going through, it can still make momentous decisions. It approved new pollution control standards for power stations, entitled the LCP BREF (1) The name might sound obscure, but the results should be concrete: The new standards are projected to save up to 20 000 lives annually across the EU.

On the EU’s doorstep in the Western Balkans, however, you would hardly know the LCP BREF existed. Almost all the countries in the region are planning to build new coal power plants, and there has been virtually no mention of the need for them to comply with the new standards.

This is strange, because not only is compliance with the new LCP BREF necessary for EU accession, but most Western Balkans already stipulate it as part of their domestic pollution control legislation (2). This means that as soon as the standards enter force in the EU this year, they also enter into force in most of the region.

CO2 remains an unsolvable problem with coal

Let’s be clear here: the LCP BREF is not a panacea. It limits emissions of SO2, NOx, PM10, HCl, HF and mercury, so it makes a great contribution to reducing coal’s health impacts. But it can’t do anything about the biggest problem with coal: CO2 and its contribution to climate change. There is no filter that can stop CO2 emissions, and if we are to limit climate change to 1.5-2 degrees, no new coal plants can be built. Unlike climate science, BREF is legally binding, and attempts to ignore it will likely backfire even sooner than attempts to ignore climate science.

Legislative changes need to be anticipated

Whether you have to comply with the LCP BREF right now or in a few years, it’s not something you want to ignore. With power stations lasting 40 years and more, they need to be designed in line with the very latest technical and environmental standards, and their promoters need to anticipate the rules coming up within the next few years. Failure to do so means additional and potentially expensive retrofits just a couple of years after a plant has opened.

With the chances of new coal plants being viable already at rock bottom, such additional costs could easily increase the risk of stranded assets. Only very few EU countries are planning new coal plants, because of low electricity prices, the growth of renewable energy, CO2 costs, and pollution control legislation that is gradually making polluters, instead of the public, pay the health costs of coal.

Yet governments and utilities in the Western Balkans are not doing their homework about recent trends and new legislation that awaits them in the next few years, with the result that their planned projects are dangerously out of date.

Earlier this year we revealed that none of the planned coal power plants seem to have properly taken the costs of CO2 into account in their financial planning. Now we’ve crunched the numbers for the LCP BREF and found that none of the plants has proven compliance with the new standards either.

Planned Balkan coal plants not in compliance with new BREF

There are eight units currently being actively planned in the region. Out of these, five would violate the new standards while for three there is insufficient information available. Kostolac B3 in Serbia, Pljevlja II in Montenegro, and the Oslomej reconstruction in Macedonia have been designed in line with the older Industrial Emissions Directive (IED) Annex V standards, but not the new BREF. Tuzla 7 and Banovići in Bosnia-Herzegovina don’t even go this far: Tuzla 7 is bound only by the even more outdated local legislation while the environmental permit for Banovići is unclear about what standards are relevant. For the remaining three units, Ugljevik III units 1 and 2, and Kosova e Re, the information about likely emissions is still unclear.

Kostolac B3 in Serbia is the only plant for which the new BREF has even been mentioned in its official documentation. It is currently undergoing an environmental impact assessment process, in which local groups have commented on the need for the plant to comply with the BREF. The only reaction so far is an amendment in the study stating that the plant would be an existing plant under the BREF and thus allowed to pollute more than new plants. Even if some retrofits are necessary, the study argues, this is a normal procedure after running a plant for a few years, and thus nothing to worry about.

Neither of these claims is true: Any plant receiving its integrated environmental permit after the LCP BREF enters force in the EU is a new one, according to the BREF definitions, and has to stick to the highest standards. As for undertaking retrofits, the study authors should really check the plant’s feasibility assessment, which shows that the plant will be unviable even with a low CO2 price.

The story is not dissimilar with Pljevlja II in Montenegro. Despite being hailed – like all the plants – as being in line with EU standards, it turns out that it is in line only with outdated ones. Local NGOs pointed out during the environmental assessment process that the plant must comply with the new LCP BREF, but they have received no reaction from the authorities as yet.

Montenegro and Serbia may seem like the most alarming cases due to being ahead of others in EU accession, but Bosnia-Herzegovina is if anything a more worrying case, due to the number of projects planned. The Stanari lignite power plant which started commercial operation last September is already out of date compared to the Industrial Emissions Directive and will now be out of line with the BREF as well. If Ugljevik III, Tuzla  7, and Banovići are all completed and all out of line with the BREF, the country will end up with a significant burden on its hands.

If the Balkans electricity utilities really ran on commercial lines, as they are bound by the Energy Community Treaty to do, they would never risk these projects. The new LCP BREF is but one more indicator that coal is an increasing liability, and the Balkan countries should be looking much more carefully at what’s going on around them. After all, the region has ample potential for wind, solar and energy savings combined with a relatively small population, so if this region can’t make a transition to sustainable energy, who can?

NOTES:

  1. Large Combustion Plants Best Available Techniques Reference Document
  2. Albania, the Federation entity of Bosnia-Herzegovina, Kosovo Macedonia and Montenegro. Serbia and Republika Srpska both require the application of best available techniques but do not specify that the EU reference document should be used.