Secretariat launches dispute settlement procedure against Bosnia and Herzegovina for breaching Large Combustion Plants Directive in the case of Tuzla 4 and Kakanj 5

28 October 2022

Today, the Secretariat sent an Opening Letter to Bosnia and Herzegovina to address its breach of the Large Combustion Plants Directive in the case of the two thermal power plants  Tuzla 4 and Kakanj 5, which continue to operate despite the expiry of their limited lifetime derogation period (also known as „opt-out”). Operation after the derogation period ends has negative impact on citizens in Bosnia and Herzegovina as air pollution is responsible for severe health and environmental damage.

Following a written declaration not to operate a plant for more than 20,000 hours after 1 January 2018, the opt-out was granted to selected installations by the Energy Community Ministerial Council. This is an implementation alternative to complying with the emission limits set by the Large Combustion Plants Directive. Following the expiry of the 20,000 hours, the plants concerned can only remain in operation if they meet the (stricter) standards of the Industrial Emissions Directive. This is however not the case for TPPs Tuzla 4 and Kakanj 5.

Earlier this year, the Parliament of the Federation of Bosnia and Herzegovina adopted a conclusion with the intention to prolong the work of TPPs Tuzla 4 and Kakanj 5 until 1 January 2028. The Secretariat made it clear already at that time that such a unilateral decision represents a clear breach of the obligations of Bosnia and Herzegovina under the Energy Community Treaty.

The approaching end of the opt-out period for all plants concerned is continuously flagged by the Secretariat in its Annual Implementation Reports since the entry into force of the Large Combustion Plants Directive on 1 January 2018.

Interested parties may be granted access to the case file and may submit written observations on the present case. All requests for information should be addressed to the Legal Counsel at dirk.buschle@energy-community.org and should make reference to the relevant case number ECS-1/22.