The majority of housing stock in Bosnia and Herzegovina, especially in the urban areas, consists of pre-fabricated multi-story apartment buildings that are generally of low quality, poorly insulated and maintained. As a result, they provide only a low level of comfort. Residential heating accounts for more than 40 percent of energy use, as in most Balkan countries, because previous construction and heating methods did not focus on energy efficiency. As a result, the highly inefficient energy use aggravates the negative effect of escalating energy prices on low-income households.
Current construction standards and practices for residential buildings in Bosnia and Herzegovina are lagging behind European and international standards that are not effectively applied in construction and refurbishment of old buildings.
It is estimated that in Bosnia and Herzegovina, buildings consume as much as 52 percent of energy while the European level is at approximately 40 percent. The current EU legislation states that the maximum annual energy consumption in buildings is 95 kWh/m2. On average, the buildings in Bosnia and Herzegovina consume more than 200 kWh /m2. Private households even consume as much as 350 kWh/m2.