Energy Summit

April 15 -16, 2015Grand Hotel Neum Neum, Bosnia and Herzegovina

State Electricity Regulatory Commission (SERC)

UNDER THE AUSPICES OF

Regulatory Commission for Energy of Republic of Srpska (RSERC) Regulatory Commission for Electricity in the Federation Bosnia and Herzegovina (FERC)

ENERGYSUMMITin Bosnia and Hercegovina

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Table of Contents


About the Energy Summit

Agenda

Welcoming Remarks

Panels and Workshops

Presenters

Fact Sheet USAID Energy Investment Activity (EIA)

About the Regulatory Commissions

Summit Venue

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About the Energy Summit

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Energy sector reform, use of renewable energy sources, energy efficiency and market liberalization are the topics that will be of interest to citizens of Bosnia and Herzegovina in the years to come.

With the aim of establishing a dialogue on these topics and creating momentum among stakeholders to continue the initiated reforms, USAID Energy Investment Activity (EIA) Project is organizing the Energy Summit.

The Energy Summit will be held under the auspices of the State Electricity Regulatory Commission, Federation Electricity Regulatory Commission and Republika Srpska Energy Regulatory Commission.

Through panel discussions, presentations and workshops the attendees will discuss investments into the electricity sector, the functioning of retail electricity market and integration of renewables into the regional market. The Summit will also feature technical sessions that will deal with key topics, such as the reduction of emissions from existing power plants in BiH, generation of electricity from biomass, and integration of renewable energy sources into the market.


Agenda

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Wednesday, April 15, 2015 Grand Hotel Neum

09:30-10:00 Participant Registration

Welcoming Remarks

Project Presentation – USAID Energy Investment Activity (EIA)

Impediments to Investment in BiH Energy Sector

Panel: Balancing Mechanism in BiH; Regional Electricity Retail Market

Panel: Retail Electricity Market andNew Roles of Distribution System Operator

10:00-10:40

10:40-11:00

11:00-12:30

12:30-13:00

13:00-14:30

14:30-16:00

16:00-17:30

Coffee Break

Media Statements

Lunch for the Summit participants

19:30-21:30 Gala Dinner for the Summit Participants

- New Roles of the Distribution System Operator – USAID Energy Investment Activity (EIA)- Electricity Market in Serbia – Energy Agency of the Republic of Serbia- The Impact of Electricity prices on Retail Market Opening – Elektroprivreda BiH- Panel Discussion

- Practice and Challenges in BiH – USAID Energy Investment Activity (EIA)- Model of International Practice – Energy Market Regulatory Authority of Turkey- Panel Discussion

- Development of the Balancing Market in BiH – BiH Independent System Operator - Regional Electricity Market – Petrol Slovenia- Panel Discussion

Workshop: EU Large Combustion Plants Directive

- Progress in Development of Emission Reduction Plans in Elektroprivreda BiH and Elektroprivreda RS- Panel Discussion

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Agenda

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Thursday, April 16, 2015 Grand Hotel Neum

09:00-10:30 Workshop: Future Roles of Distribution System Operator as a Retail Electricity Market Facilitator and Current Status

14:00-15:30 Lunch for the Summit Participants

13:30-14:00 Energy Summit Conclusions

13:00-13:30 Coffee Break

Coffee Break

- Status and Next Steps – USAID Energy Investment Activity (EIA)- Discussion and Conclusions

Workshop: Biomass Power Plants(Part one)

- Procedure for Obtaining Necessary Permits and Consents – Biogas Power Plant Example - Biogas Production in Agriculture and Its Use for Electricity Generation - Discussion

11:00-13:00 Workshop: Integrationof Renewable Energy Sources Into the Electricity System and Market - Status and Next Steps – USAID Energy Investment Activity (EIA)- Discussion and Conclusions

Workshop: Biomass Power Plants(Part two)

- Gasification of Wood Chips for Power Generation - Biomass Boilers and the Organic Rankin Cycle Turbo Generators - Available Financing by the Entities’ Development Banks - Discussion and Conclusions

Workshop: Investment Impediments, Projects of Energy Community Interest (PECI)

- Questionnaire Analysis of PECI - Discussion and Conclusions

10:30-11:00

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Mr. Nikola Pejic, Chairman of the State Electricity Regulatory Commission (SERC), has been a SERC Commissioner since September 2007, currently serving a third term as Chairman of the Commission. Before his engagement with SERC, Mr. Pejic had a long track record of success in the energy sector, with extensive experience in the field of electrical engineering and management. He started his career as principal engineer and researcher at the Mining Institute in Tuzla, where he worked for almost 20 years, which was an invaluable asset for his professional development when holding similar positions for USAID-funded projects and private companies in Bosnia and Herzegovina.

Nikola Pejic Chairman of the State Electricity Regulatory Commission

Ms. Hadzimustafic was born in Zenica where she has finished high school (electrical) and then graduated from the Faculty of Electrical Engineering. Her working experience comes from many years in the power sector; namely, in JP Elektroprivreda Bosne i Hercegovine d.o.o. Sarajevo – Elektrodistribucija, as project designer and Head of Electricity Collection Department. She was nominated by the Parliament of the Federation of Bosnia and Herzegovina for Commissioner in the Federation Energy Regulatory Commission – FERC on October 8th, 2003, for a four-year term and on July 22, 2008, for the second term of five years.

Dulizara Hadzimustafic President of the Federation Energy Regulatory Commission

Milenko Cokorilo is the current President of the Republika Srpska Energy Regulatory Commission. He graduted from the Faculty of the Electric Engineering in Sarajevo and has, since then, held a number of engineering positions in the power sector, notably in Hydro Power Plant on the Trebisnjica river, Elektroprivreda Republike Srpske, Joint Electric Coordination Centre in Sarajevo. Mr. Cokorilo was a member of the Steering Committee and UCTE Assembly and is an active member of the Working Bodies of CIGRE.

Milenko Cokorilo President of the Republika Srpska Energy Regulatory Commission

Nicholas M. Hill Deputy Chief of Mission, Embassy of the United States of America in Bosnia and HerzegovinaNicholas M. Hill is a career member of the Foreign Service and arrived in Sarajevo in July 2012 to serve as the Deputy Chief of Mission of the U.S. Embassy in Bosnia and Herzegovina. Mr. Hill was most recently the Deputy Chief of Mission at the U.S. Embassy in Ulaanbaatar, Mongolia. Prior to that he served as the Chief of Trade Policy at the U.S. Embassy in Tokyo. During his 27 year career as a Foreign Service Officer, Mr. Hill has worked overseas at U.S. missions in Belgrade, Budapest, Montreal, Sapporo, and Zagreb, as well as at the United Nations in New York and at the State Department in Washington, D.C. Mr. Hill holds a B.A. in History and Economics from Bowdoin College, a Masters in International Relations from George Washington University, and a Masters in Security Studies from the National War College in Washington, D.C. Born in Belgrade, Yugoslavia, he is married and has two sons.

Reuf Bajrovic Minister, Federal Ministry of Energy, Mining and IndustryMinister Reuf Bajrovic was born in 1977 in Sarajevo. He graduated from the Department of Political Science, University of Louisville, Kentucky (USA). Mr. Bajrovic¸ earned his MSc degree in EU Integrations from the University in Sarajevo and University in Bologne. He authored a large number of publications, articles and research papers. His participation in public conferences include: „The Road to NATO and EU Accesion“, „The Western Balkans in the EU – the Visions of Future Decision – Makers and Current Policies“, „How to Achieve Peace and Stability in the Balkans Bosnian Perspective“, and „The Future of EU Foreign Policy: How to Reach Peace and Stability in Western Balkans“. During the period between 2001 and 2015 Mr. Bajrovic worked as Senior Officer for Planning at UNDP; director of Method Consulting Company Sarajevo, and president of the Emerging Democracies Institute, Washington DC. Also, Mr. Bajrovic worked as a consul-tant for leading international institutions, such as International Republican Institute, National Democratic Institute, JICA, DFID, GIZ, EC, Friedrich Ebert Stiftung and others. He is married.

Mr. Busch was Born in 1974. He holds a degree in Political Science from the Freie Universitaet Berlin and Postgraduate Studies on Policy Management from London University. Mr. Busch is Head of EUSR Political Office, Bosnia and Herzegovina Since 2013. In 2011 he served as the Adviser to the EU Facilitator for the Technical Dialogue between Belgrade and Pristina and in 2010 Head of the EULEX Liaison Office Belgrade. He was also the Special Assistant to the Deputy Head of EULEX Mission in Kosovo and Special Assistant to UNMIK Deputy Special Representative of the Secretary-General in Kosovo.

Thomas Busch Head of Political Office, Delegation of the European Union to Bosnia and Herzegovina and European Union Special Representative in BIH

Welcoming Remarks

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Impediments to Investment in BiH Energy Sector

Presenters

PANEL

PANEL

Panelists

- Elmira Pasagic, Senior Attorney, USAID Energy Investment Activity Project- Fatih Kölmek, Advisor, Energy Market Regulatory Authority of Turkey

- Jelica Grujic, Director, Foreign Investment Promotion Agency of Bosnia and Herzegovina- Hamed Mesanovic, President, Commission for Concessions of Bosnia and Herzegovina- Tarik Begic, Head of Electricity Department, Federal Ministry of Energy, Mining and Industry- Nebojsa Susic, Head of Licensing Department, Regulatory Commission for Energy of Republika Srpska - Amil Kamenica, Executive Director for Capital Investments, Elektroprivreda Bosnia and Herzegovina- Zoran Morvaj, Investor

Balancing Mechanism in BiH; Regional Electricity Retail Market

Presenters

Panelists

- Merim Dzizic, Senior Expert Associate for Ancillary Services and Balancing Market, Independent System Operator BiH; - Gorazd Skubin, Director of International Energy Trading, Petrol Slovenia

- Milorad Tusevljak, Commissioner, State Electricity Regulatory Commission- Milodrag Kosarac, Management Member, Independent System Operator in Bosnia and Herzegovina - Milka Mumovic, Electricity Expert, Energy Community Secretariat - Mirsad Sabanovic, Executive Manager for Electricity Trading and Supply, Elektroprivreda Bosnia and Herzegovina- Mustafa Beca, Head of the Sector for Distribution, Elektroprivreda Bosnia and Herzegovina- Cvjetko Zepinic, Executive Director for Operation and Maintenance, Elektroprenos Bosnia and Herzegovina

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Adnan Rondic, Moderator



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Retail Electricity Market and New Rolesof Distribution System Operator

Presenters

Panelists

- Holger Ziegler, Consultant, USAID Energy Investment Activity Project- Aca Vuckovic, Head of the Sector for Technical Affairs, Agency for Energy in the Republic of Serbia- Mirsad Sabanovic, Executive Manager for Electricity Trading and Supply, Elektroprivreda Bosnia and Herzegovina

- Edin Zametica, Advisor, State Electricity Regulatory Commission- Milka Mumovic, Electricity Expert, Energy Community Secretariat - Davorin Dakovic, Acting Director for Distribution, Elektroprivreda HZHB- Mladen Staka, Commissioner, Regulatory Commission for Energy of Republika Srpska- Sanela Pokrajcic, Commissioner, Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina

Host

Presenter

- Fahrudin Kulic, Senior Engineer, USAID Energy Investment Activity Project

- Jadranko Simic, Consultant, USAID Energy Investment Activity Project

PANEL

EU Large Combustion Plants Directive WORKSHOP

Host

Presenter

- Ognjen Markovic, Chief of Party, USAID Energy Investment Activity Project

- Hans Pipke, Consultant, USAID Energy Investment Activity Project

Future Roles of Distribution System Operator as a Retail Electricity Market Facilitator and Current Status

WORKSHOP

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Host

Presenters

- Fahrudin Kulic, Senior Engineer, USAID Energy Investment Activity Project

- Dusan Gvozdenac, Consultant, USAID Energy Investment Activity Project- Snezana Vujnic, Director, Republika Srpska Investment-Development Bank- Elmira Pasagic, Senior Attorney, USAID Energy Investment Activity Project- Berislav Kramar, Senior Sales Manager, Biogest

Biomass Power PlantsWORKSHOP

Host

Presenter

- Ognjen Markovic, Chief of Party, USAID Energy Investment Activity Project

- Holger Ziegler, Consultant, USAID Energy Investment Activity Project

Integration of Renewable Energy Sources Into the Electricity System and Market

Investment impediments, Projects of Energy Community Interest (PECI)

WORKSHOP

Host

- Elmira Pasagic, Senior Attorney, USAID Energy Investment Activity Project

WORKSHOP

Energy Summit Conclusions

Presenter

- Mak Kamenica, Deputy Chief of Party, USAID Energy Investment Activity Project

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Presenters

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Fatih KölmekFatih Kölmek is an Energy Expert and Advisor to the Commissioner in the Energy Market Regulatory Authority (EMRA) of Turkey. He has earned BS and MS degrees (with full-scholarships) in electrical and electronics engineering from Bilkent University and is currently studying in Hacettepe University’s PhD program in economics (with a scholarship from The Scientific and Technological Research Council of Turkey). Mr. Kölmek has been with EMRA since 2005 and has specialized in licensing, electricity market mechanisms, market monitoring and regulation-making issues. His interest areas include liberalized market mechanisms, competition, price forecasting, integration of renewable energy and security of supply. Currently, he is researching energy markets and policy, and advising on market regulation under EMRA’s jurisdiction (i.e., electricity, natural gas, petroleum and LPG). He is also a representative in the Black Sea Regulatory Initiative, aiming to increase utilization of the region’s renewable energy sources and cross-border trade. Mr. Kölmek has written many articles on the Turkish electricity marketm and he is currently serving as an associate editor of the Energy, Market and Regulation Journal.

EMRA

Merim Dzizic is a Senior Expert Associate for Ancillary Services and Balancing Market. His areas of interest are power system management, ancillary services and the balancing market. He graduated in 2000 from the Faculty of Electrical Engineering and Mechanical Engineering in Tuzla and obtained his Master’s Degree in 2013, from the Faculty of Electrical Engineering in Sarajevo.

Merim Dzizic ISO BiH

Gorazd Skubin is the Manager of the Electricity Division and Director of International Energy Trading in Petrol d.d., Ljubljana. Mr. Skubin completed his studies at the Faculty of Electrical Engineering in Ljubljana and has since worked in a number of positions in the Slovenian energy sector, including the position of Director of the Transmission System Operator (ELES) and Operational Dispatcher in the Regional Power Control Center. Mr. Skubin was the Project leader, founder and first CEO of Borzen, the Slovenian market operator.

Gorazd Skubin Petrol, Slovenija

Elmira PasagicElmira Pasagic joined the USAID Energy Investment Activities Project team as Senior Attorney in October 2014. She has extensive experience working in the BiH legal system for international organizations, public institutions and corporations. Her prior commitments included working as a legal consultant for a variety of projects funded by the European Commission, USAID, UNDP, SDC, among others, in a range of sectors such as justice, energy, labor and employment, finance, trade, national planning and policy development. From 2001 to 2009, she actively participated in comprehensive judicial reform and worked as the Executive Director of The High Judicial and Prosecutorial Council of Bosnia and Herzegovina. She holds a Master‘s Degeee in International and European Public Law.

USAID EIA

Ognjen MarkovicOgnjen Markovic is the Chief of Party of the USAID Energy Investment Activity (EIA) Project in Bosnia and Herzegovina. He is also working as a Regulatory Expert for the USAID Regulatory Partnership program in Bosnia and Herzegovina. Previously, he was the Chief of Party of the USAID Regulatory and Energy Assistance project (REAP). Mr. Markovic graduated and obtained his Master’s Degree from the Faculty of Electrical Engineering in Sarajevo. His 38 years of experience in numerous engineering and management positions in the BiH electricity sector have enabled Mr. Markovic to gain extensive knowledge and familiarity with the BiH electricity sector. Mr. Markovic also worked as a consultant in Kosovo and Tajikistan.

USAID EIA


Presenters

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Aca Vuckovic was born in Belgrade in 1961. He graduated from the Faculty of Electrical Engineering, Department for Electricity Systems, in 1984. He obtained his M.Sc. degree at the same college in 1994. After working for three years in Serbian Telecom, he worked from 1989 to 2005 in Elektroprivreda Srbije (Serbian power utility), where he worked on short-term and long-term operational planning for thermal and hydro power plants, the analysis of cost in the power system, and development of tariffs and databases. Since December 2005, he has been employed in the Agency for Energy in the Republic of Serbia, where he has held the position of Senior Expert Associate and is currently working as the Head of the Sector for Technical Affairs.

Aca Vuckovic AERS

Mirsad Sabanovic is the Executive Director for Electricity Trading and Supply, JP Elektroprivreda BiH. He graduated from Faculty of Electrical Engineering in Tuzla in 1992. Master’s Degree received from the Faculty of Electrical Engineering in Sarajevo in 2008. Has many years’ experience in the electricity market; operation, planning and economy of electric power systems; as well as in the restructuring process of the electric power sector. During his professional career he worked in the Independent System Operator in Bosnia and Herzegovina (ISO BiH) and in JP Elektroprivreda BiH on activities of power systems control, market development, sales and trading of electricity. From 2011, he held the position of Executive Director for Electricity Trading and Supply in JP Elektroprivreda BiH. He is the author and co-author of several studies and expert publications related to the electricity market, operation and economy of the power system.

Mirsad Sabanovic EP BiH

Holding a university degree in Business Engineering, Holger Ziegler joined KEMA Consulting GmbH in April 2008. Since then he has been involved in various projects and has worked with diverse clients such as European regulators, TSOs, utilities, EU DG Tren and European Bank for Re-construction and Development both in Germany and abroad. He has acquired particular competence in European markets for ancillary services, European wholesale markets as well as renewable energies and corresponding incentive schemes. Based on the projects realised to date Mr. Ziegler has specialised on the integration of renewable sources into energy systems, comprising of legal, regulatory and market-related aspects of renewables integration.

Holger Ziegler USAID EIA

Mak Kamenica is the Deputy Chief of Party of the USAID Energy Investment Activity (EIA) project. Mr. Kamenica holds a B.S. in Electrical Power Engineering from the Faculty of Electrical Engineering - University of Sarajevo and a certificate in Business Project Management from the New York University. Mr. Kamenica was a Fulbright Visiting Scholar at the New York Institute of Technology and is currently finishing his Master's Degree in Electrical Power Engineering. His previous experience includes being the Deputy Chief of Party of the four-year USAID Enterprise Energy Efficiency – 3E Project, in Bosnia and Herzegovina, and an Advisor/Intern at the Mission of Bosnia and Herzegovina to the United Nations in New York on issues that concern energy efficiency, climate change, environment and sustainability. Since 2010, he has been the Executive Director of the America-Bosnia Foundation.

Mak Kamenica USAID EIA


The ChallengeThe energy sector is one of Bosnia and Herzegovina’s (BiH) most important export sectors and engines for economic growth. The sector also has key relevance for the country’s accession to the European Union (EU) and energy security in the Western Balkans. BiH could more than double its electricity production if it capitalized on its potential for hydroelectric power, used renewable energy sources, implemented energy efficiency measures and built more thermal power plants. To date, however, a number of obstacles – political and bureaucratic, and the absence of a market-oriented environment – have driven away even the most determined investors.

Our ProgramThe main objectives of USAID’s Energy Investment Activity are to help the country attract investment and create jobs in the energy sector. Through this activity, USAID works to revise and align the permitting processes for construction of electricity generation facilities, so they are consistent, transparent and investor friendly throughout the country. The project will develop and recommend legislative measures, at all levels of government, that will stimulate investment in new power plants—especially renewable energy power plants and biomass co-generation—in select regions of the country. It will also help establish a retail market in which electricity consumers can choose their supplier. It will work to improve energy efficiency among distribution system operators and suppliers to reduce CO2 emissions and energy costs. The project will also support the BiH Ministry of Foreign Trade and Economic Relations in its role of coordinating the country’s energy sector on its path to European Union accession. A strong public outreach and awareness program will ensure BiH citizens understand and benefit from the changes taking place in the energy sector.

Implementation and Expected ResultsIn partnership with local authorities, USAID’s Energy Investment Activity will ensure that the energy sector remains a profitable sector of the BiH economy by proposing and advocating for passage of transparent and investor-friendly legislation that will enable new generation plants to be built. The project is now identifying opportunities to stimulate investment in biomass power plants in the agriculture, wood processing and livestock farming sectors and then assist with their development. The project also works with energy regulators and govern-ment authorities to develop the necessary commercial processes that allow electricity customers to choose their suppliers according to the prices and services offered. Together with key energy stakeholders, the project will assist in drafting an “Energy Efficiency Obligation Scheme,” regulations that mandate energy efficiency measures for distribution system operators and include a financing mechanism for such upgrades. Implementation of these measures could eliminate the need for at least one thermal power plant and create jobs in the energy efficiency sector.

Total Funding: $5.47 million | Project Duration: September 2014 – 2019 | Implementing Partner: Advanced Engineering Associates International

Fact Sheet USAID Energy Investment Activity (EIA)

Energy Investment Activity

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Regulatory Commission for Energy of Republika Srpska is a specialized, independent and non-profitable organization whose task is to provide conditions for the market opening for free competition in those activities which are not inherently monopolistic and when it comes to monopolistic activities to provide all parties with equal treatment, quality of service and fair price accompanied by the profitable running of business of the participants, while concur-rently complying with generally accepted international standards.Regulatory Commission regulates and monitors the relationships in the market of electricity, gas and oil, pursuant to the law and competences assigned to it by the laws in the sector of electricity, gas and oil taking care on providing the principle of transparency, non-discrimina-tion, fairness, stimulating competitiveness and protection of end users.

Regulatory Commission for Electricity in the Federation Bosnia and Herzegovina is a specialized, autonomous, independent and non-profit organization in the Federation of Bosnia and Herzegovina that has jurisdiction over electricity market monitoring and regulation of relation-ships between generation, distribution, supply and electricity customers including electricity traders, pursuant to the Law on Electricity in Federation of Bosnia and Herzegovina and enforcement acts issued by FERC.

The State Electricity Regulatory Commission is an independent institution of Bosnia and Herzegovina, which acts in accordance with the principles of objectivity, transparency and equality, and has jurisdiction over and responsibility for transmission of electricity, transmis-sion system operation and international trade in electricity as well as generation, distribution and supply of electricity for customers in Brčko District BIH. SERC was established by the Parliamentary Assembly of Bosnia and Herzegovina by adoption of the Act on Transmission of Electric Power, Regulator and System Operator of BIH, and appointment of the Members of the Commission.

State Electricity Regulatory Commission (SERC)

Regulatory Commission for Electricity in the Federation Bosnia and Herzegovina (FERC)

Regulatory Commission for Energy of Republika Srpska (RSERC)

About the Regulatory Commissions

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Summit Venue

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Grand Hotel Neum

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Congress Hall 1Located on Level 1:1. By elevator: first floor (1.), turn left to enter the Congress Center. All congress halls are marked. 2. By stairs: from the Reception desk, go downstairs (the stairway leads to the Congress Center). All congress halls are marked.

Grand Hotel NeumZagrebacka 2, 88390 Neum, Bosnia and Hercegovina

Telephone:+ 387 (0)36 880 222 - Reception+ 387 (0)36 880 077 - fax

E-mail:[email protected]

Congress Hall 2Located on Level 1: 1. By elevator: first floor (1.), turn left to enter the Congress Center. All conference halls are marked. 2. By stairs: from the Reception desk, go downstairs (the stairway leads to the Congress Center). All conference halls are marked.

Congress Hall 3Located on Level 4: from the Reception desk, go downstairs to reach the Congress Hall 3.

LOBBY – BAR Located at the hotel entrance, same level as Reception – Level 5. By stairs and elevator (press RC button).

PRESS CORNERLocated at the Congress Center

HOTEL RESTAURANTLocated above Reception. By stairs and elevator (press RE button).


Documents

Energy Summit