Very little of Bosnia and Herzegovina’s (BiH) vast energy potential has been realized over the past years due to the unfriendly business/investment environment in the country. Without a more attractive investor-friendly legal framework, which will stimulate new investments in the sector, there is a possibility that BiH will not replace the existing generation capacities (or construct new ones), which are at the end of their production life cycle.  A transparent and investor-friendly legal and regulatory environment will accelerate BiH’s economic development. Electricity generation can be a very important driver of that process.