Bojan Kovacic, MSc, Deputy Director Serbian Energy Efficiency Agency Fourth Poverty Reduction...

Bojan Kovacic, MSc, Deputy DirectorSerbian Energy Efficiency Agency

Fourth Poverty Reduction Strategies Forum, World Bank Institute,Athens, 26-27th June 2007

Energy Efficiency in Serbia

- SEEA aproach and programmes

Current state of energy consumption in Serbia

Low energy consumption per capita (vs EU)• Up to 3 times less primary energy consumption• Up to twice less electricity consumption

High energy intensity • Low energy efficiency at demand side but also

low effectiveness of the economy High losses in energy conversion and

transportation (FE to PE ratio = 56%) Import dependency (44%)

Reasons for action

Increase security of energy supply• Decreasing import dependency• Diversifying energy sources and fuels

Increase competitiveness at macro (state) and micro (enterprise) level • Less energy costs• New products and services• Increase of employments

Less pollution of the environment, in particular less CO2 emission

Barriers

Low motivation of energy consumers (relatively low energy prices, relatively high investment costs, low life standard)

Lack of institutional capacities Expensive loans and non attractive loan conditions Low financial capability of industry and citizens Undeveloped market of new products and services Lack of knowledge – new approaches Lack of informations Specific demand side sector issues

Institutional capacity building New institutions were established

• Energy Efficiency Agency, Energy Agency (regulatory), Environmental Protection Agency, Environmental Protection Fund

Capacity building of current institutions is needed Strengthening institutional cooperation is needed Strengthening cooperation between state

administration and other institutions is needed• Chamber of Engineers, professional associations,

Chambers of Commerce, municipal associations, other• Example: developing certification of energy auditors

Serbian EE network – Regional EE centers

Legal Framework Improvement Energy Law (1.8.2004, revision ongoing)

• Establishment of EE & RES Fund proposed• Lack of secondary legislation, ongoing

Environmental Protection Law• Environmental Protection Fund established

Adjustment of legislation – system approach, division of responsibility, monitoring and reporting

Results simulation – should be integral part of process for adoption of secondary legislation

Further capacity building of state administration needed, means and technical assistance needed

Energy Policy Energy Law

• Privileged electricity producers• Privileged heat producers• Entitled to facilities/should be defined by other

legislation Energy Development Strategy until 2015

• Energy Efficiency increase and wider use of renewable energy sources (RES) – prioritized objectives

Programmes Implementation Strategy until 2012• 15 parts including Energy Efficiency and RES

Support programmes (1) Programmes of Serbian Energy Efficiency Agency, EU

(EAR) grant from CARDS 2002, € 3.8 mil, completed by 31 December 2006

Serbian Energy Efficiency Project, IDA credit $25 mil., social public buildings, implementation 2004-2010, Government of Serbia, continuation NEW $28 mil.

National Energy Efficiency Programme, around € 1 mil. annually, state budget, Ministry of science and environmental protection

Energy Efficiency in households, NEW, Investment plan of Serbia, € 10 mil. in 2007, Ministry of Mining and Energy

Objective: Energy Efficiency Improvement

Support programmes (2) Mid Term programme of Environmental Protection

Fund, € 7-10 mil annually, 2006-2010. Renovation and refurbishment of school buildings,

different sources, Ministry of Education Renovation and refurbishment of health buildings,

different sources, Ministry of Health Rehabilitation of DH in Serbia, €20М, EU (ЕАR) Rehabilitation of DH in Serbia, 2 x €20M, KfW Although energy efficiency is improving,

programmes have other objectives than energy efficiency (except 1 KfW programme)

About SEEA Established in 2002 by Decree of the Government

with financial support of EU (EAR) Re-established under Energy Law (2004) Legal status: special governmental organisation

• Potential status PUBLIC AGENCY Task defined by Energy Law

• Capacity building of Agency needed – new employees (currently 11), new expertise (juridical)

Demand sector energy efficiency programmes• Buildings, Industry, Municipal energy, RES• Within 4 years 55 contracts • Public procurement under EU, WB and Serbian rules

SEEA programmes nature (1) Programmes funded by EU (EAR) grant

• Training, demonstration, information• Capacity building of SEEA• Service market development - indirectly

Serbian Energy Efficiency Project – WB loan• Demonstration of EE in social public buildings• Capacity building of SEEA and other institutions• Unique Technical and Social monitoring of the results

Grant of Kingdom of Norway• Training, capacity building (REECs, SIEEN)

Grant of Kingdom of Spain• Capacity building of SEEA in RES field

SEEA programmes nature (2)

Participation in FP7 project, RES, NEW

Partnership with CRES (Helenic Aid programm), RES – buildings, NEW

Participation in BIOM-ADRIA project, RES, NEW

Training Municipal administration• Energy Management (46)• Energy balance and plan –

demonstration (3 towns)Industry• Energy auditing (30 trainees,

10 factories)• Energy management (80

trainees, 3 factories)• EMS in food industry (25

trainees, 5 factories)• Business plans (20 trainees,

10 projects)RES• 2 forums (200 participants)

Seminar - example (1)

Seminar "Biomassa for Energy"• Held on 29.-30. March 2005. in Vrnjačka banja• About 60 participants• 15 foreign and local lecturers

Seminar - example (2)

Seminar “Geothermal Energy"

• Held on 10.-11. November 2005. in Vrnjačka banja

• About 100 participants

• 17 foreign and local lecturers

Demonstration in buildings

Investments projects -

Grant EU (EAR)

• 16 public buildings

• 900,000 € grants (max 70%)• All completed• School, kindergarten, cultural,

health and administrative buildings

Serbian Energy Efficiency ProjectInvestment projects• WB IDA loan

• Phase 1 – 28 buildings• 13 buildings completed• 7 buildings – ongoing• 7 buildings – tender

procedure• Maternity hospital -

preparation• Technical monitoring• Social monitoring• Consultancy: BDSP-

London/Energoprojekt-Entel

EVALUATION

MEASURESMEASURING

WORKS

PROCESS

INTERVIEW

1 2 3 4 5 6 7 8 9 10 11 12

0

10

20

30

40

50

60

70

Demand (MWh)

Month

Monthly Total Demand for Combined Zones in Odzaci.bso

Heating loads Humidify loads Cooling loads Dehumidify loadsInternal gains Solar gains

MEASURINGINTERVIEW

ANALYSE

‘AFTER’

‘BEFORE’

SEEP – Methodology

Demonstration in Municipalities

Investment projects

• 11 projects• € 381,000 grant (up to 75%)• DH – 4 projects• Street lighting – 5 projects• Water supply – 2 projectsEnergy Plans

• 3 towns• Sombor, Jagodina, Kraljevo

Demonstration in RES

SHPP Kragujevac – demoSHPP Celije - FS

Banja Rusanda - FS

ES Katici - demoDH Negotin - FSBanja Bujanovac

FS

EU (EAR) grants• 6 projects• 2 investments (110,000 €)• 4 Feasibility Studies (50,000 €)

Renewable Energy Sources

• Energy Law and Law on Concession / basis• Provide incentives through secondary

legislation• Provide transparency of the procedure (who,

what, when, what requirements) through INFO pool

• Investigate potential (maps) and make it public• Concession for construction at existing dams

(example)• Opportunity: 20 000 new employees till 2012

Potential 2,600,000 toe• 60% agricultural production• 40% forest mass

Actual using• individual and quite wide, but there

aren`t precision data• mainly for heating• low efficiency

Opportunities• mainly for heating• biofuels and co-generation

Biomass (1)

Capacity building of SEEA is needed Secure stable source of financing for

programmes and running of SEEA since 2007 year!

Establish Fund for rational use of energy (EE & RES)

Adopt Law on rational use of energy

How to proceed ?

REPUBLIC OF SERBIAENERGY EFFICIENCY AGENCY (SEEA)

Omladinskih brigada 1

11070 Belgrade, Serbia

Phone +381-11 31 31 957

Fax +381-11 311 16 49

seea@seea.sr.gov.yu

www.seea.sr.gov.yu

Bojan Kovacic, MSc, Deputy Director

bojan.kovacic@seea.sr.gov.yu