USAID Energy Policy Activity Second Quarterly Progress Report

The objectives of the project are to achieve better coordination, management, and transparency at all levels of BiH's regulatory framework, a simplified energy policy environment, and targeted technical assistance to integrate BiH's energy sector into regional and EU markets. The project is divided into several components, including Natural Gas Technical Assistance, Electricity Technical Assistance, and Cross-cutting Assistance on EU Accession Requirements in the BiH Energy Sector. The Natural Gas Technical Assistance component focuses on creating the preconditions for and development of a BiH natural gas internal market, and its integration into the regional natural gas market. This includes addressing the design and adoption of regulatory and policy reforms, such as the unbundling of gas pipelines, open access regulation, and rules on licensing, tariffs, and customer switching. During the second quarter of 2020, EPA continued efforts to build a consensus regarding the adoption of the State Electricity and Natural Gas Law (State Law). To achieve this, EPA organized a series of meetings with key stakeholders to present its proposed amendments to the State Law and held meetings with representatives of the international community, including the Office of the High Representative, the EU Delegation to BiH, and the Energy Community. EPA also provided technical assistance in preparing a specific law that would regulate the construction of the South Natural Gas Interconnection between BiH and the Republic of Croatia. This law would enable the investor to use simplified permitting procedures that otherwise can take several years to complete. Additionally, EPA continued to organize meetings with its key stakeholders to present the scope of the new EPA technical assistance in the energy sector. The project has made significant progress in achieving its objectives, including the development of a Mitigation Plan to address the effects of the COVID-19 pandemic on the project's Work Plan and activities. EPA has also continued to work on the State Level Law on Electricity and Natural Gas, and has provided technical assistance in preparing a specific law that would regulate the construction of the South Natural Gas Interconnection. The project's progress is measured through a series of impact indicators, including the adoption of the State Law, the development of a BiH natural gas internal market, and the integration of BiH's energy sector into regional and EU markets. The project's Work Plan and Performance Monitoring Plan outline the specific activities and tasks that will be undertaken to achieve these objectives, and the project's progress is regularly reviewed and assessed to ensure that it is on track to meet its goals. The project's next quarter will focus on implementing the activities outlined in the Work Plan, including the development of a BiH natural gas internal market and the integration of BiH's energy sector into regional and EU markets. EPA will continue to work with key stakeholders to build a consensus regarding the adoption of the State Law and will provide technical assistance in preparing a specific law that would regulate the construction of the South Natural Gas Interconnection. The project's progress will be regularly reviewed and assessed to ensure that it is on track to meet its goals.