Brussels has expressed growing concerns regarding Bosnia and Herzegovina’s progress on crucial energy sector reforms, particularly in relation to the Southern Gas Interconnection project. The European Union (EU) has identified significant deficiencies that may hinder both the project’s advancement and the overall EU integration process for the country.
In a formal communication issued in mid-April, Luigi Soreca, head of the EU Delegation in Bosnia and Herzegovina, urged national authorities to align their energy legislation with European regulatory standards. This warning underscores critical structural issues such as insufficient regulatory independence, incomplete unbundling of energy activities, and restricted third-party access to the gas market. These factors are fundamental requirements under the Energy Community framework and are central to EU energy policy.
The EU has also highlighted potential repercussions should these reforms face delays. Inaction on adopting necessary legislation could impede Bosnia and Herzegovina’s EU accession process and jeopardize access to vital financial support mechanisms. The complete implementation of the EU Third Energy Package remains a priority within the country’s reform agenda.
This communication from Brussels coincides with recent legislative developments within the Federation of Bosnia and Herzegovina concerning the interconnection project. Amendments have appointed AAFS Infrastructure and Energy, a US-based company, as the primary project developer while diminishing the role of BH Gas. This shift has raised additional regulatory and political apprehensions.
Moreover, Bosnia and Herzegovina’s gas sector framework is still lacking comprehensiveness; notably, there is no established state-level gas law or a fully operational national energy regulator. This institutional gap continues to obstruct compliance with EU requirements, complicating efforts to implement large-scale infrastructure projects effectively.
European officials have stressed that coordinated policymaking alongside close consultation with the European Commission is vital for progress. Without enhanced alignment, Bosnia and Herzegovina risks losing momentum in its EU accession journey as well as access to essential EU funding opportunities linked to necessary energy sector reforms.
