Energy security cannot be separated from economic or national security, as stated today in Tuzla at a conference “Regional Energy Security and Sustainable Investment Cycle,” – Energy transition.
The first panel on energy connectivity of the Western Balkans, security of supply, and strategic partnerships was attended by the Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, and the Chargé d’affaires at the Embassy of the United States to Bosnia and Herzegovina, John Ginkel.
Ginkel highlighted that energy source diversification is a key priority for all modern countries, especially amid rising energy consumption driven by the development of artificial intelligence, data centers, and contemporary industry.
“Energy security cannot be separated from economic and national security. The modern world requires more energy than ever before, and this won’t change,” Ginkel said.
He emphasized that the US engagement in Bosnia and Herzegovina is directed towards energy security, the country’s future, and partnership between the countries.
Speaking about the energy system vulnerability, Ginkel said that events from 2022 showed how dangerous it is to rely on a single energy source.
“Bosnia and Herzegovina is vulnerable today as its gas is supplied from a single source, through one pipeline and one interconnection. This is bad for energy security, national security, and economic growth,” Ginkel said.
He added that Bosnia and Herzegovina must diversify its energy sources, including gas, renewables, and hydrocarbons, and that it requires public-private collaboration to develop a system that would last for decades.
The Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, said that energy security must be viewed from a state perspective rather than an ethnic one, emphasizing that national security in Bosnia and Herzegovina means state security. He emphasized that energy security is increasingly driven by regional connectivity and the mutual integration of power networks.
“The one connected with the region and Europe is certainly stronger and more resilient to challenges that could emerge in the energy sector. That is the path the Federation of Bosnia and Herzegovina wants to take, as well as Bosnia and Herzegovina and the countries of the region,” Nikšić said.
He cited the geostrategic position between the south-east market and central Europe as an advantage of the Federation of Bosnia and Herzegovina and Bosnia and Herzegovina. Nikšić added that regional connectivity brings greater security of supply, efficient infrastructure utilization, better integration of renewable energy sources, and a better response to market disruptions.
According to him, special significance is carried by the cross-border power and fuel infrastructure projects, including the Southern Gas Interconnection.
Nikšić said that amendments to the Law on Southern Interconnection, unanimously adopted in both Houses of the Parliament of Bosnia and Herzegovina, enabled direct talks with investors and created room to attract a major investor to the Federation of Bosnia and Herzegovina.
Ginkel reiterated that the US strongly supports the Southern Interconnection, calling it part of the US contribution to energy security in Central and Eastern Europe.
“Southern Interconnection is important not only to Bosnia and Herzegovina, but to the entire region. The modern energy infrastructure is far too important and expensive for anyone to undertake such a project alone. It requires cooperation between states, the private-public sector, as well as a regulatory framework which will give investors certainty,” Ginkel said.
Nikšić emphasized that, from the very beginning, the Government of the Federation of Bosnia and Herzegovina has been on the same page with the US Embassy and the American administration regarding the need to implement the Southern interconnection.
“No one benefits from how many meetings we have held or how much we have talked about this until the project is completed, work gets underway, and we see concrete results,” Nikšić said.
He added that the Southern Interconnection in Bosnia and Herzegovina provides an alternative gas supply source, greater security of supply, and the potential for more favorable market conditions.
“It is important that at this moment we are also becoming a transit country and that this gas will flow toward Central Europe and the European countries through the Federation, namely Bosnia and Herzegovina,” Nikšić said.
He also warned that the Federation of Bosnia and Herzegovina has shifted from being a power exporter to an importer, which, as he said, indicates the need to reorganize the entire energy sector.
“This is something the Federation of Bosnia and Herzegovina needs. We possess significant resources, from hydropower potential to thermal power plants, but we are immediately faced with the issue of decarbonization, CBAM tax, and the need to expand capacities of renewable energy sources,” Nikšić said.
According to him, the Government of the Federation of Bosnia and Herzegovina is committed to responding to current and future challenges by ensuring a just transition for mines, expanding renewables, and building the Southern Interconnection to deliver a secure and stable energy sector for future generations.
Ginkel emphasized that Bosnia and Herzegovina possesses significant energy potential, particularly in hydropower, and that US companies are in talks with the country’s representatives regarding opportunities for its expansion.
He further noted that talks are held on small modular reactors, while emphasizing that the role of hydrocarbons cannot be overlooked, given that they represent an affordable energy source vital for Bosnia and Herzegovina.
“The moment Bosnia and Herzegovina has adequate policies, an energy infrastructure, and a regulatory framework adapted to the modern economy, I am convinced that we will see an economic boom in this country over the next five, six, seven, or ten years,” Ginkel said.
The two-day conference in Tuzla brings together representatives of governments, embassies, international institutions, public companies, operators, investors, and the private sector from Bosnia and Herzegovina and the region.
Following the introductory addresses and the first panel, a ministerial panel on energy policies, regional cooperation, security of supply, decarbonization, and investments is scheduled for the remainder of the first day. The second day of the conference will focus on gas, oil, electricity, the Southern Interconnection, just transition, and the role of the public and private sectors in the new investment cycle.
