Scenario Analysis of a Coal Reduction Share in the Power Generation in Bosnia and Herzegovina until 2050

This paper is effectively a scenario analysis of the energy system of Bosnia and Herzegovina (BiH) from the perspective of the possible future reduction of greenhouse gas (GHG) emissions in the power generation sector, with the aim to become climate neutral by 2050, in compliance with the Green Agenda for the Western Balkan. According to the data from 2016, the share of power generation in the total GHG emissions in BiH was approximately 50%. By using the LEAP (Long-range Energy Alternatives Planning) energy model, two scenarios—the “gradual transition scenario” and the “climate neutral” scenario—have been analyzed for the period 2018–2050, and each scenario included decarbonization measures such as the extensive use of Renewable Energy Sources (RES). Unlike the climate neutral scenario, the gradual transition scenario includes the replacement of certain parts of the old, currently-in-operation Coal-fired Power Plants (CFPPs) with the new CFPP, which is more efficient. In the climate-neutral scenario, that part of the existing CFPPs is replaced by a mix of RESs. The results from the first scenario suggest that the share of CFPPs in electricity generation has gradually decreased from 69.3% to 16.3% in 2050, and CO2 emissions from the power generation sector in 2050 will be 2.2 million tons—roughly 83.5% less than in 2014. According to the second scenario, the emphasis is strongly on the growth and promotion of RESs, which have significantly taken over the roles of major producers of electricity, encouraging the low-carbon development of BiH. Analysis results show that, in 2050, there will be no CO2 emissions from power generation. It can be concluded that specifically designed energy models for the optimization of capacities and CO2 emissions through convergence towards RESs could be an optimistic and promising option for BiH to become climate neutral while meeting increasing energy demands. The results show the required RES capacities needed for achieving climate-neutral power generation by 2050, with the current rate level of power generation. Based on the results, RES investment needs can be estimated. Overall, the results of the scenarios can be used for the strategic planning of the power generation sector in BiH until 2050.