Bosnia and Herzegovina (BiH) remains the only country in Europe without an electricity exchange. At the end of July, the Council of Ministers approved a draft law on the regulator, transmission, and electricity market that aligns with EU requirements and would create a unified framework for such an exchange. The proposal has not yet reached Parliament, and it is uncertain whether it will be adopted before the end of the year. In an optimistic scenario, the market platform could become operational in the second half of next year, according to economist and professor Vjekoslav Domljan.
Neighboring countries have moved forward long ago. Croatia established CROPEX 11 years ago, Serbia has operated SEEPEX since 2016, and North Macedonia, Kosovo, Albania, and Montenegro set up their market operators two years ago. BiH should have done the same to better balance electricity surpluses and deficits and allow prices to be determined by supply and demand over short periods, such as day-ahead and intraday. Building the exchange will likely require external expertise, similar to how the Sarajevo Stock Exchange was established. Domljan proposes Mostar as the location, positioning it as a hub for renewable energy due to its geographic advantages.
For now, the opportunity is being missed. In the first six months of this year, BiH imported nearly four times more electricity than during the same period last year. Weak development of renewable projects and the occupation of transmission capacity without corresponding investment have discouraged capital inflows, even though some large projects are advancing, such as a Chinese-built wind farm near Tomislavgrad and a planned 400 MW facility near Glamoč.
Households would not see direct, immediate benefits from an electricity exchange, but indirect advantages could arise if prosumers are aggregated and integrated under future regulations. Prosumers already exist in the Republic of Srpska (RS) but are not yet present in the Federation of Bosnia and Herzegovina (FBiH).
Placing an organized electricity market and exchange in Mostar would also enable market coupling with neighboring systems. Such regional integration is a key requirement for securing exemptions from CBAM-related charges on electricity until 2030.
