Abstract
In the past year, a set of energy laws was adopted in the Federation of Bosnia and Herzegovina (FB&H), namely the Law on Energy and Regulation of Energy Activities in the FB&H, the Law on Electricity in the FB&H and the Law on the Use of Renewable Energy Sources and Efficient Cogeneration. The new set of energy laws also defines a new method of incitement, which is provided for large plants for the production of electricity from RES and efficient cogeneration through the auction system. In this sense, in addition to the establishment of the auction system, the correct calculation of the replacement market price is also very important. During the writing of this paper, an analysis of the surrounding organized electricity markets was performed, and a methodology was proposed that would, in the best sense, give a correct calculation of the replacement market price. In this regard, the replacement market price would at the same time mirror the actual electricity trade in the Federation of Bosnia and Herzegovina for a period of one month, and would also take into account the price movement on the surrounding organized electricity markets.