Energy Poverty in Bosnia and Herzegovina: Challenges, Solutions, and Policy Recommendations

Energy poverty remains a significant issue in Bosnia and Herzegovina, characterized by limited access to affordable and sustainable energy sources. This paper examines the prevalence of energy poverty among 1500 retiree households and evaluates the potential of photovoltaic (PV) systems as a solution. The research highlights the multidimensional nature of energy poverty, incorporating variables such as income, energy expenditures, and heating methods. Using statistical methods, including factor analysis and regression models, the research developed an energy poverty index (EPI) to categorize households and identify key drivers of energy poverty. The findings reveal that 96.5% of households experience moderate to high energy poverty when transport costs are included, dropping to 84.3% when these costs are excluded. Households using wood for heating, with a combined rooftop area of 26,104 m2, could generate 7,831,200 kWh of solar energy annually, reducing CO2 emissions by 1,389,825 kg. The aggregated payback period for PV investments is approximately 9.3 years, demonstrating financial viability. The paper underscores the potential of energy communities in pooling resources, facilitating rooftop leasing for PV installations, and promoting policy reforms to promote renewable energy adoption. This research contributes to the understanding of energy poverty dynamics and provides actionable recommendations for integrating PV power plants, fostering energy equity, and reducing environmental impacts.