THE EFFECT OF CAPITAL CONSTRUCTION OF POWER FACILITIES ON THE ECONOMIC DEVELOPMENT OF LOCAL COMMUNITIES
THE EFFECT OF CAPITAL CONSTRUCTION OF POWER FACILITIES ON THE ECONOMIC DEVELOPMENT OF LOCAL COMMUNITIES

Author(s): Elvedin Grabovica
Subject(s): Energy and Environmental Studies, Economic policy, Economic development, EU-Accession / EU-DEvelopment
Published by: Akademija Nauka i Umjetnosti Bosne i Hercegovine
Keywords: Power sector; Development; Local community;
Summary/Abstract: Construction of new power plants is necessary for the development of the electricity industry, which needs to meet three basic requirements of energy policy as defined in EU strategies: security of supply, sustainability and competitiveness. These criteria allow for energy independence, respecting environmental aspects and economic growth at the national level, as well as at the level of the local communities where production facilities are located. This paper analyzes the contribution of production facilities in the electricity sector in the economic development of society as a whole, with special emphasis on the impact on the local community. The effects are analyzed for the period of construction and during operation of various types of power plants. For this purpose, a model was developed for the evaluation and calculation of direct effects and indirect benefits assessment. Some examples of the analysis for the existing power plants and for several new projects are shown. The analyzes show a significant contribution of the power plants to economic status of local communities in the actual circumstances, but the potential for an even greater share of domestic components in the construction and operation of production facilities as well. This requires establishing long-term national strategies and concrete measures in order to create an incentive environment for development and strengthening of domestic firms.

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