The Tuzla Thermal Power Plant in Bosnia and Herzegovina stands at a critical juncture, emblematic of Europe’s dynamic energy transition. This coal-fired powerhouse, with a capacity of over 740 megawatts (MW), has long been a mainstay of the nation’s electricity grid. However, as the continent accelerates its shift toward renewable energy, the future of Tuzla and similar legacy assets has become increasingly uncertain.
A Complex History and Uncertain Future
Tuzla’s origins trace back to the 1950s, when the plant’s first two units, totaling 64 MW, were commissioned. Over the ensuing decades, the facility expanded, with the addition of the 100 MW Unit 3 in 1966, followed by two 200 MW units in the 1970s and the 215 MW Unit 6 in 1978. Today, the plant operates six generating units, fueled by lignite and subbituminous coal from the nearby Kreka and Banovići mines.
Yet, Tuzla’s future is clouded by a web of environmental, economic, and regulatory challenges. In 2022, the Energy Community Secretariat initiated legal action against Bosnia and Herzegovina, citing the country’s failure to comply with pollution limits and upgrade mandates under the EU’s Large Combustion Plants Directive. This has placed the continued operation of Unit 4 in limbo, with uncertainty surrounding its fate beyond 2028.
Compounding these issues, the proposed 450 MW Unit 7 expansion has been mired in controversy and legal battles for over a decade. After a series of false starts, including the withdrawal of equipment supplier General Electric and the inability of the Chinese consortium to fulfill the engineering, procurement, and construction (EPC) contract, the project appears to have been shelved. In late 2023, the Federation of Bosnia and Herzegovina’s Prime Minister officially announced the cancellation of Tuzla 7, citing the need to either reach an agreement with the Chinese partners or pursue arbitration.
Embracing Renewable Energy Alternatives
Amid these challenges, the Tuzla plant has begun to explore renewable energy alternatives. The most prominent initiative is the proposed conversion of Unit 3, the plant’s oldest unit, from coal to biomass. Elektroprivreda BiH, the state-owned utility that operates Tuzla, has explored the possibility of utilizing willow biomass grown on nearby mine lands to fuel the converted unit.
However, this biomass plan has faced significant skepticism. Biofuelwatch, an environmental organization, has highlighted the impracticality of the willow-based approach, noting that the proposed 50 MW biomass capacity would require an estimated 29,000 hectares of land – more than double the size of Sarajevo. Additionally, concerns have been raised about the water-intensive nature of short-rotation coppice (SRC) willow plantations, rendering them ill-suited to the region’s increasingly volatile climate.
As the biomass plan remains shrouded in uncertainty, Tuzla’s operators have also explored other renewable energy options. In 2023, the company signed a contract with the Norwegian firm GEIA AS to pilot the replacement of coal with an unspecified technology. This initiative underscores the plant’s recognition of the need to diversify its energy mix and align with the European Union’s ambitious decarbonization targets.
Navigating Regulatory Challenges
The regulatory landscape surrounding Tuzla has added further complexity to the plant’s transition. Bosnia and Herzegovina’s membership in the Energy Community, a platform for aligning energy policy with the EU, has brought the country’s coal-reliant electricity sector under increased scrutiny.
The Energy Community Secretariat’s 2022 legal action against Bosnia and Herzegovina over Tuzla’s non-compliance with EU pollution standards is a testament to the growing pressure on the country to modernize its energy infrastructure. This case highlights the challenges faced by legacy assets like Tuzla, which must either invest in costly upgrades or face the prospect of premature closure.
Furthermore, the proposed state guarantee for the now-cancelled Tuzla 7 project was deemed illegal by the Energy Community, as it violated the organization’s rules on state aid. This ruling underscores the need for Bosnia and Herzegovina to align its energy policies with EU regulations, a process that will likely require difficult decisions and substantial investments in the years ahead.
Towards a Sustainable Future
As Tuzla Thermal Power Plant navigates this complex landscape, the broader energy transition in Bosnia and Herzegovina and across Europe is gaining momentum. In April 2023, the country announced a draft national energy plan that foresees no new coal-fired power plants, a significant shift away from its historical reliance on fossil fuels.
This development aligns with the European Union’s ambitious climate targets, which aim to achieve net-zero greenhouse gas emissions by 2050. The transition toward renewable energy sources, such as wind and solar, coupled with innovative technologies like hydrogen and energy storage, will be crucial in redefining the energy landscape in Bosnia and Herzegovina and throughout the continent.
Collaborative Approach to a Greener Future
The path forward for Tuzla and similar legacy assets will require a collaborative effort between policymakers, industry stakeholders, and local communities. Public-private partnerships, access to climate finance, and the implementation of carbon pricing mechanisms will be essential in mobilizing the necessary resources and expertise to drive the energy transition.
By embracing renewable energy solutions, modernizing infrastructure, and ensuring a just transition for affected workers and communities, Bosnia and Herzegovina can position itself as a leader in Europe’s clean energy future. The Tuzla Thermal Power Plant, once a symbol of the nation’s industrial might, can become a testament to the power of innovation and the unwavering commitment to a sustainable energy landscape.
As the European Future Energy Forum continues to shape the dialogue around Europe’s energy transformation, the Tuzla Thermal Power Plant stands as a complex, yet compelling, case study. By navigating the challenges and seizing the opportunities presented by this transition, Bosnia and Herzegovina can chart a course toward a cleaner, more resilient energy system that benefits its people and the environment alike.
