Bosnia and Herzegovina, a country in the Western Balkans, is facing a critical moment in its energy history. Despite global efforts to reduce greenhouse gas emissions, coal remains a dominant force in the nation’s economy. The Tuzla thermal power plant, which is supplied by the Mramor mine, plays a central role in this energy dependence. Coal fuels 94% of Bosnia’s electricity generation, with an annual output of around 13 million tons. While it is essential for power plants and household heating, coal is also the primary source of air pollution in the country. Sarajevo, where coal heating is common, is frequently ranked among the most polluted cities globally. A World Bank report reveals that air pollution in Bosnia causes an estimated 3,300 premature deaths each year.
Ironically, coal also serves as a major economic driver for Bosnia. With proven coal reserves of 2.6 billion tons, the country is the only net exporter of electricity in the Western Balkans, with around 30% of its electricity production being exported. This generated 430 million euros in revenue in 2023. Despite this, the Bosnian government has committed to decarbonizing its energy sector by 2050. However, this ambitious goal requires substantial investment. Experts estimate that replacing the 2,300 MW capacity from current thermal power plants would require 5,000 MW of wind power or 10,000 MW of solar power, which could cost billions of euros.
Elektroprivreda BiH, the state-owned utility, plans to close two thermal power plant units by 2027 and invest 170 million euros in modernizing the remaining plants. Additionally, 511 million euros will be dedicated to renewable energy projects, with 450 MW expected to be generated by 2028. However, the transition is moving slowly, and environmental groups, such as the Aarhus Center, have raised concerns about the pace and scale of the shift. With the European carbon tax set to come into effect in 2026, Bosnia’s reliance on coal could face a severe challenge by 2035, which may put thousands of jobs at risk.
The closure of mines is already having a social impact. In Zenica, the shutdown of mining operations has led to the loss of 600 jobs, leaving behind a social debt of 71.5 million euros. Many of these workers, who lack full social contributions, now face growing uncertainty. As Bosnia moves forward with its energy transition, it will need to invest not only in modernizing its energy infrastructure but also in addressing the social and environmental costs of the shift. The critical question remains: can the country reconcile its economic reliance on coal with its commitment to tackling climate change?
