The City of Banja Luka has requested the technical assistance of the Climate Technology Centre and Network (CTCN) in order to evaluate options for rehabilitating and modernizing the district heating (DH) system. Banja Luka is the second largest DH system in Bosnia and Herzegovina (BiH). It experiences significant energy losses (in large part due to hot water leakages and heat losses) during transmission and end-use, thereby incurring major avoidable costs to the City and the publicly owned Company, while also producing unnecessarily high amounts of greenhouse gas emissions.
The Company has identified the need for investments for the reconstruction of the City's network. The Company has also identified the need for fuel substitution and is considering conversion of the biomass or alternative cheaper energy source (away from heavy fuel oil) for various parts of its operations.
The CTCN technical assistance and parallell work of the District Energy in Cities Initiative is intended to deliver an actionable evaluation of options with associated investment and policy development plan that will ensure the investment is a) attracted from private sector or other actors where required, b) does not deliver a technical solution without the policy framework that will ensure long-term sustainability of the DH system's business plan (e.g. building efficiency policies and tariff regulation).