When considering further developments in Bosnia and Herzegovina’s energy sector, conventional energy wisdom has to be adapted to fit the specific context. Although hydropower will remain the mainstay of the renewable energy sector in the near future, biomass as an energy carrier does have potential on the Bosnia and Herzegovina market.

While the size of the Bosnia and Herzegovina’s market place allows for some economies of scale, its capitalization, the purchasing power and even the monetization of Bosnia and Herzegovina remains low. In the rural areas, the private sector is still underdeveloped, but the human resource base is not limited, and the electricity grid is developed at a sufficient level.

Key barriers that were identified can be summarized (: the development of large-scale bioenergy plantations that can supply sustainable amounts of low-cost biomass feedstocks; the risks involved in designing, building and operating large integrated biomass conversion systems capable of producing bioenergy and biofuels at competitive prices with fossil fuels; and the development of nationwide biomass-to-bioenergy distribution systems that readily allow for consumer access and ease of use [19].

Decentralized renewable energy technologies and markets offer opportunities; but they need support, including targeted policies, capacity building, adequate financial resources to meet high up-front costs, and special effort to link-up with income generation activities. Specific barriers include [20]