Sarajevo Energy and Climate Week (SECW) to Focus on a Fair Transition and Decarbonization of the Energy Sector
The Sarajevo Energy and Climate Week (SECW) will be held from September 25 to 29, 2023. This event will focus on fair transition and decarbonization of the energy sector with the goal of achieving climate neutrality and establishing a circular economy. We spoke with Amra Šurković, the General Manager of SECW, and Prof. Dr. Azrudin Husik, Professor at the Faculty of Mechanical Engineering at the University of Sarajevo, an expert on energy transition and a member of the SECW Program Committee, about SECW and the key topics related to energy transition in Bosnia and Herzegovina.
This event is organized by the Chamber of Commerce of the Federation of Bosnia and Herzegovina, under the patronage of the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina and the City of Sarajevo. The focus will be on a fair transition and decarbonization of the energy sector with the aim of achieving climate neutrality and establishing a circular economy.
More Than 1,000 Participants
“SECW is an international event aimed at a fair energy transition, taking into account climate goals and decarbonization of the energy sector in Bosnia and Herzegovina and the Western Balkans region
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The rich experience and legacy of Bosnia and Herzegovina’s energy sector has made the country a regional leader, but to maintain this status, we need to continue following energy sector trends, make sometimes difficult but correct decisions about the future of the energy sector, keeping in mind that the ultimate goal is the decarbonization of the energy sector, namely the cessation of fossil fuel use by 2050, especially coal,” explained Šurković.
Throughout SECW, presentations, discussions, meetings, and expos will focus on energy and climate policies, goals, and opportunities in the energy and climate sectors, energy systems of the future, innovative business models, challenges and opportunities aimed at achieving energy security and climate neutrality, circular economy, air quality improvement, and environmental protection.
The event is significant because it will bring together decision-makers at all levels regarding the future of energy in the region, experts advising decision-makers and developing strategic frameworks, entrepreneurs investing and creating new jobs, as well as representatives of the NGO sector advocating for transparency in the energy transition.
An additional significance lies in the fact that, for the first time, local institutions are leading the organization of such a high-level event,” said Šurković. According to her, SECW should serve as a roadmap for achieving climate neutrality and decarbonization of Bosnia and Herzegovina’s energy sector by 2050 and be a key event in the Western Balkans for all energy sector stakeholders.
“During the five days of high-level interactive discussions, SECW is expected to gather more than 1,000 participants from around the world, including high-ranking officials, representatives of all levels of government, ministers in energy, climate, and environmental sectors, spatial planning, transportation, representatives of European Union institutions, the Energy Community, the World Energy Council, manufacturers of modern equipment such as heat pumps, solar power plants, wind turbines, etc., as well as academia, experts, entrepreneurs, investors, financiers, NGOs, media, and other interested parties,” said Šurković.
What Does a Fair Transition Mean for the Economy and Society? Since the opening part of SECW is dedicated to fair transition, we were curious about what exactly fair transition means and what its implementation would mean for the economy, especially for the mining sector, and for society as a whole.
“Fair transition means moving from fossil fuel use to renewable energy in a socially sensitive way. This means that, during the transition, which involves the gradual cessation of fossil fuel use, all social groups must be taken into account. In the context of Bosnia and Herzegovina, fair transition primarily concerns regions dependent on coal mining, where the transition process must ensure that miners and employees in coal-related activities do not lose their jobs. There are successful global examples of fair transition that include retraining workers, opening new jobs in new sectors, building new infrastructure, using local resources for new economic activities on former mining sites, and reforming the education system.
For the Bosnian economy, implementing a fair transition represents guidance for development while achieving competitiveness at the global level. The transition process requires large investments in renewable energy, energy efficiency, infrastructure development, etc. This presents an opportunity, especially for private companies to grow regardless of their industry. Fair transition enables everyone to become energy producers, not just consumers, which has been the case until now.
For society as a whole, fair transition means creating new, higher-quality jobs compared to those in traditional energy sectors and improving environmental conditions. Many cities in Bosnia and Herzegovina have excessive air pollution. The situation can be significantly improved by gradually reducing coal use and investing in energy efficiency,” explained Šurković.
Current Phase of Bosnia and Herzegovina’s Energy Transition Energy transition in Bosnia and Herzegovina has been widely discussed for a long time, but we were interested in knowing what phase the country is currently in regarding this process.
“In recent years, progress in the energy transition in Bosnia and Herzegovina has been visible. This has primarily been driven by the rise in energy prices, which has led to the competitiveness of renewable energy sources, especially through the prosumer model, and to the profitability of investments in energy efficiency. As a result, there has been rapid growth in installed capacity for renewable energy sources, particularly in solar power plants. In the last two years alone, several times more solar power plants have been built in Bosnia and Herzegovina than in the entire previous period, and this was done without government subsidies. Thousands of MW in new solar and wind power plants are in the development phase. According to some estimates, these capacities are nearly three times greater than the total existing capacity for electricity generation in Bosnia and Herzegovina. Of course, not all of these power plants will be built; some will fail due to the inability to secure financing, some due to the inability to connect to the grid, and some because of the inability to obtain all permits. However, we must also consider the network balancing. Therefore, it would not be possible to accept all the energy from such large solar and wind capacities. To alleviate this issue, smaller solar power plants should be encouraged to be built at the place of consumption, i.e., on factory and house roofs,” emphasized Prof. Dr. Husik.
According to him, it is necessary to generally introduce mechanisms for steering the transition through market mechanisms and regulatory frameworks. Significant progress has been made in this area, but results are still not visible.
“The capacity of those responsible for these issues, such as ministries at all levels of government, is very limited, and the regulatory framework we need to adopt is very complex. However, much faster work is needed in this area to reform the entire system, which will enable the implementation of new business models such as energy service provision (ESCO), public-private partnerships, prosumers, the introduction of energy origin guarantees, etc.,” Prof. Dr. Husik stressed.
How to Become Part of the SECW Event? We were interested in knowing how interested parties can get involved in SECW, the five-day international event, and be part of it.
“Anyone who wants to be part of this great story, present themselves, meet new business partners, exchange ideas with participants, can get involved as a patron, sponsor, participant, exhibitor, panelist, or media partner. During the conference, there will also be an exhibition space where, among others, manufacturers of modern energy technologies such as heat pumps, solar power plants, and electric vehicles have already confirmed their participation.
More information about this event and our contact details can be found on the website www.secw.ba. Through the SECW website, it is also possible to purchase registration for all days of the event. Additionally, SECW information is available on social media,” says Šurković.
A Serious Barrier
To implement a complex process like the energy transition, it is necessary to have appropriate material, financial, and human capacities. The real question is whether Bosnia and Herzegovina currently has these capacities.
“Capacity for a fair transition in energy efficiency is a serious barrier to a faster transition. This primarily refers to human capacities. There is an insufficient number of people in the relevant bodies working on these issues. With the complex state structure, this is a serious problem. Furthermore, the education system is changing slowly, and we don’t have enough personnel for some new professions. There is a noticeable shortage of qualified workers for the design and installation of heat pumps, solar power plants, etc.
Financing sources are available
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but they are conditioned by complicated and lengthy procedures for obtaining permits, not only for renewable energy sources but also for energy efficiency, infrastructure construction, such as setting up electric chargers, building pipelines for district heating,” emphasizes Prof. Dr. Husik.
“As previously mentioned, in the last few years, serious work has begun on the energy transition, which represents a significant economic and societal change. Therefore, it must be discussed for a long time before we see results on the ground. The energy transition is not just about building new solar and wind power plants, which is why it is moving slowly. Of course, the process needs to be accelerated, but we also need to realistically assess the situation in Bosnia and Herzegovina,” says Prof. Dr. Husik.
Every transition also requires certain material resources. Accordingly, the question arises as to whether Bosnia and Herzegovina has, at least, preliminary estimates on how much the energy transition will cost and how to finance this process.
“According to preliminary estimates in the Integrated Energy and Climate Plan of Bosnia and Herzegovina, around 14.5 to 17 billion BAM will be required for the fair transition by 2030 for the realization of the NECP (National Energy and Climate Plan). However, this should not be seen as a cost but as investments that will open new jobs, potentially bringing back some of the workers who left Bosnia and Herzegovina. These are investments that will pay off, and a significant portion of them will come from private companies, both domestic and foreign,” points out Prof. Dr. Husik.
One of the key questions for the realization of the energy transition is the readiness of the Bosnian economy and population for active participation in the process.
“Small and medium-sized enterprises (SMEs) are quite ready, and some are already working on the energy transition because the market dictates this. Encouraged by programs from domestic and foreign organizations, many SMEs are working on replacing fossil fuels, installing solar power plants for their own needs, and investing in energy efficiency measures. However, the media does not talk about this enough, so there is an impression that nothing is being done.
As for large enterprises, in some industries, such as the cement industry, serious work is being done on the energy transition, shifting to more sustainable energy sources, and preparing for the introduction of carbon dioxide emissions fees.
In the electricity sector, there are also clear decarbonization plans. However, in some other industries, progress is significantly slower,” says Prof. Dr. Husik.
Source: Business Magazine