The Regulatory and Economic Conditions for Self-consumption Development in Bosnia and Herzegovina

"Elektroprivreda HZ HB" d.d. Mostar (JP EP HZHB) - one of four distribution system operators

(DSO) in BiH serving 206,000 customers across 35 municipalities. By May 2025, the grid hosted 788 renewable units (118 MW), with no self-consumers yet. BiH's electricity prices, among the lowest in Europe, deter PV investment. Self-consumption growth thus depends on policy incentives for residential and SME users. In 2023, the RES Law introduced net billing and net metering schemes. Because network charges are predominantly volumetric, selfconsumption will reduce DSO revenues. Given the elevated legal thresholds for net billing and net metering relative to LV customers' annual demand, JP EP HZHB DSO commissioned a comprehensive study in 2024, with the principal findings presented herein. The 10-year payback period is achievable primarily for households installing PV systems at costs below

€800/kW (excl. VAT). In practice, households will opt for larger systems that fully offset their yearly consumption, accepting extended paybacks and/or relying on investment subsidies. 85% of households require up to 6 kW to fully offset annual consumption. For low-voltage nonhousehold customers (SME), PV investments are more economically viable due to higher tariffs and better alignment of demand with daylight hours. 85% of non-household customers require up to 17 kW to fully offset annual consumption. Universal 100% coverage adoption could reduce DSO network charge revenues by ~30%.