The paper presents an analysis of the current situation regarding the development of an electricity distribution network and potential for a smart grid development in the selected pilot region of Bosnia and Herzegovina. Apart from the policy framework assessment, several indicator based criteria were included in the scope of analysis: share of renewable energy and renewable energy as distributed energy resource, total share of distributed energy resources, a number of installed smart meters for measuring electricity consumption, a number of charging stations for electric vehicles, energy storage capacities and technological development. The overall analysis of the assessment has been done by normalization of the calculated values of the indicators on a scale of 1-5. The indicators have showed that the smart grid sector in the Region is currently underdeveloped.
