Bosnia and Herzegovina Biomass Energy for Employment and Energy Security Project
Background
While Bosnia and Herzegovina is very well endowed with biomass energy resources, and the rural population is highly dependent on wood (particularly in the form of firewood), information related to the biomass energy sector was extremely scarce in past. Current data about biomass residues or waste are good and relatively new (they have been collected through EU/FP6/ADEG project in 2004, based on forest and agricultural statistics, and surveys (in forest management companies, economy chambers, and wood processing industry). The annual increment is calculated to 9.49 million m3, which corresponds to 3.0 % of the total standing volume (317.5 million m3).
Annual allowable cut is calculated to 7.44 million m3 and actual harvesting to 4.43 million m3. Although annual growth seems high, annual wood increment is constrained by inadequate local forest management practices. This project removes market barriers to the adoption of sustainable biomass energy services in rural areas of Bosnia and Herzegovina through market transformation, enhancing job creation, community poverty reduction and local energy security. Focusing on the Srebrenica region covering the Municipalities of Srebrenica, Bratunac and Milici, the project addresses barriers in policy and legislation, finance, business and management skills, awareness, and technology through a comprehensive barrier removal strategy that addresses biomass supply including forest management and demand-side biomass technology deployment.
The project will co-operate closely with the UNDP-SRRP Forestry for Employment Project to provide a model for addressing sustainable biomass supply. The GEF project uses an innovative niche market buyers-group approach (procurement) to increase sales volume, supported by heat service contracting (Build, Own, Operate, Transfer – BOOT), where technology suppliers carry both investment and operational risk and it represents best practice in building local ownership of project successes, enhancing sustainability and replicability.
Objectives
The project objective is to avoid 120,000 tonnes CO2eq over 15 years, by retrofitting or installing biomass-fired boilers in 20 schools. The GEF MSP will be closely integrated into the UNDP SRRP Forestry for Employment Project “Regeneration of the Forestry and Wood-Processing Cluster in the Srebrenica Region”.
Achievements and Expected Results
Market demand for biomass energy is increased; Sustainable biomass fuel supply markets strengthened and expanded; Policy makers, financial sector, fuel and technology suppliers and niche markets are convinced of benefits and market opportunities for biomass energy.
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