Bosnia and Herzegovina (BiH) is rich in natural resources for energy production (rivers, agricultural and animal waste biomass, coal, wind, and the like). Although limited energy potential has been exploited thus far (i.e., only approximately 34% of hydro potential), BiH is among a few energy exporting countries in the region. Estimates are that BiH has the potential to at least double its electricity production so the energy sector could become the one of the main growth engines in the BiH effort to speed up economic development. Moreover, a substantial part of the existing generation capacities at the end of its production life cycle, and there is a need to construct replacement capacity. The whole region needs additional generation capacity to secure continuity and security of supply. Thus, the above are signals to investors to take BiH energy potential seriously. The energy sector could play an important role in driving the BIH economy forward and creating new jobs; however, due to current political and bureaucratic obstacles, BiH is not able to fully realize this potential.