00stojadinovic Serbia Enhancing Energy Efficiency

7/28/2019 00stojadinovic Serbia Enhancing Energy Efficiency

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Energy Crisis and Climate Change Challenges for Politics and Business in South East Europe

Evangelische Akademie Tutzing, 28 March 2009.

Republic of Serbia - Ministry of Mining and EnergyDejan Stojadinovic, Assistant Minister

Serbia

Enhancing

Energy

Efficiency

and use of

Renewable

Energy

Sources


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Legal Framework

Energy Law (OJ RS 84/04) provides the overall foundation for development of renewable energy sources and energy efficiency

Energy Law has established Serbian Energy Efficiency Agency, with the mission to promote and enhance rational use of energyand use of renewable energy sources - in order to ensure sustainable energy development through promotion and information

dissemination, technical advices and demonstration projects

Energy Sector Development Strategy of Republic of Serbia by 2015. (2005) emphasize importance of utilization of renewableenergy sources for distributed heat and power generation and recognize Serbian Energy Efficiency Agency, Energy EfficiencyFund and introduction of support schemes as the main instruments for the achievement of these goals

Programme for Implementation of Energy Sector Development Strategy 2007-2012(2007) elaborate Strategy in more details anddefine priorities for utilization of renewable energy sources. Programme is updated every two year, and next update will be

prepared for the period 2009-2011

Regulation on technical and other requirements of liquid biofuels (OJ S&M 23/06) defines technical requirements for biodiesel andbiofuels


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Institutional Stakeholders EE & RES

MINISTRY OF

SCIENCE AND

TECHNOLOGY

MINISTRY OF

MINING AND

ENERGY

MINISTRY OF

ENVIRONMENT

AND SPATIAL

PLANNING

Renewable energy and energyefficiency policy developmentand implementation

National Programme for EnergyEfficiency technologydissemination and demonstrationfacilities

Building standards Some energy efficiency

provisions

NO INSTITUTIONAL MECHANISM TO COORDINATE POLICIES WITH FOCUS ON ENERGY EFFICIENCY AND RENEWABLES

Belgrade, Novi Sad, Nis,Kragujevac, Kraljevo

REGIONAL ENERGY

EFFICIENCY

CENTRES

ENERGY

EFFICIENCY

AGENCY

Sectoral energy efficiencyprograms

Training and public awarenesscampaigns

ENVIRONMENTAL

PROTECTION FUND

Financing some energy efficiencyand renewable energy programs


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FINAL ENERGY SUPPLY IN 2009.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

COAL OIL GAS ELECTRICITY HEAT

Mt

oe

INDUSTRY HOUSEHOLDS OTHERS

Energy production and consumption

PLANNED PRIMARYENERGY SUPPLY IN

2009. 17.794 M toe

PLANNED FINAL ENERGY SUPPLYIN 2009. - 8.915 M toe

10% THERMAL ENERGY

13% SOLID FUELS

40% LIQUID FUELS

11% GASEOUS FUELS

26% ELECTRICITY

55% PRODUCTION

45% IMPORT

Energy intensity 2005. (est.)

0.41 toe per thousand USD of GDP

2.7 times higher than average forOECD Europe

Technical potential for energy

efficiency 30%Economic potential for energy

efficiency 20%

Regulation under preparation

Law on Rational Use of Energy

Secondary legislation

Introduction of Energy Management


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Energy Balance 2009

2007. 2008. 2009.

Primary energy supply per capita (toe/capita) 2.228 2.395 2.416

Electricity supply per capita (toe/capita)

(kWh/capita)

0.295

3,429

0.309

3,589

0.314

3,654

Share of RES-E in total electricity generation 28% 27% 28%

Share of RE in final energy supply 13% 12% 11%

Production

(toe)

Geothermal energy 4,700

Large Hydro 923,000

Small Hydro 4,300

Biodiesel 300

Fuel wood 163,000

TOTAL 1,095,300

Serbia 2009

Planned Production of

Renewable Energy


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Potentials(Mtoe)

Biomass 2.40

SHPP 0.40

Solar 0.64

Geothermal 0.20

Wind 0.19

TOTAL 3.83

Serbias endowment of renewable energy resources is substantial- realization of these potentials require Government action

Biomass

63%SHPP

10%

Solar17%

Geothermal

5%

Wind

5%

RES Technical Potential

Clear technical potential of renewable energy - insufficient information

about the economic potential


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Biomass

Most promising utilization options for

biomass:

Space heating in households and

buildings using biomass pellets orbriquettes

Co-firing or total replacement in districtheating plants firing heavy oil or coal in

south Serbia, where natural gas is not

available yet

Production of electricity utilizingagricultural and wood wastes

Forest biomass

Fuel Wood

7 million m

unofficial

--------------------

1.6 million m

official

(55% from State

forest)

Wood

residues5 million m

TOTAL 12 million m

Fruit growing residues

Biomass residues

(1,000 tones)

Plum 393.5

Apple 36.2

Cherries 55.0

Pear 14.0

Peach 35.1

Apricot 15.5

Walnuts 55.0

Grapes 515.0

TOTAL 1,119.3

Crop farming residues

1/3 available for Energy Use

Total residues

(1,000 tones)

Residues for

Energy Use

(1,000 tones)

Wheat 2,905 1,365

Barley 295 180

Rye 15.5 4.4

Corn 5,310 1,140

Sunflower 705 240

Soybean 320 130

Rapeseed 7.8 1.6

TOTAL 9,560 3,060

Wood

biomass

1 Mtoe

Agriculture

biomass

1.4 Mtoe


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Small Hydro Power Plants

>5 MW: 9 locations

2-5MW: 30 locations (average

3 MW)


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Small Hydro Power Plants

No of

SHPP

locations

Potential power

installed (kW)

Potential Annual

Generation (MWh)Municipality

64 34,300 121,203 Ivanjica

35 33,284 109,692 Raka

40 25,925 94,026 Pirot

40 23,458 78,394 Kraljevo

47 18,800 73,971 Prijepolje

9 17,576 60,210 Zajear

22 17,045 72,212 Crna Trava

20 15,825 55,100 Novi Pazar

8 15,690 58,850 Bela Palanka

8 11,216 25,850 Despotovac

30 10,974 45,391 Brus

19 10,706 30,180 a32 10,185 38,438 Vranje

22 10,141 38,985 Kurumlija

16 9,875 35,318 Priboj

30 9,800 36,099 Trgovite

13 9,785 30,937 Valjevo

10 9,305 27,419 Tutin

16 8,945 24,380 agubica

17 8,675 34,553 Bosilegrad

No of

SHPP

locations

Potential power

installed (kW)

Potential Annual

Generation (MWh)Municipality

19 8,625 32,877 ajetina

17 8,320 29,720 Leskovac

21 8,310 36,832 Nova Varo

27 8,170 32,543 Surdulica

13 7,990 28,262 Vlasotince

19 7,640 27,395 Bajina Bata

12 7,070 27,500 Ni

8 6,740 20,050 Boljevac

12 5,346 17,928 Uice

15 5,325 19,862 Ljubovija

7 4,730 10,230 Negotin

11 4,690 16,578 Vladiin Han6 4,655 20,283 Arilje

14 4,515 19,459 Babunica

1 3,000 13,700 Novi Sad

1 850 4,700 Vrbas

1 620 2,270 Beej

1 1,220 8,190 Bela Crkva


10/2010

Solar

MONTH Total

Year

Average

DailyI II III IV V VI VII VIII IX X XI XII

Beograd 1.40 2.20 3.35 4.85 6.00 6.45 6.75 6.00 4.65 3.05 1.60 1.15 1,446.80 3.96

Vrac 1.00 2.00 3.35 4.40 6.00 6.40 6.55 6.85 4.60 3.00 1.55 1.00 1,424.75 3.90

Pali 1.30 2.10 3.45 5.00 6.15 6.25 6.35 5.85 4.30 2.85 1.40 1.15 1,407.40 3.80

Novi Sad 1.45 2.35 3.20 4.65 5.80 6.20 6.35 5.75 4.40 2.90 1.45 1.20 1,392.65 3.82Ni 1.75 2.60 3.45 5.00 6.10 6.35 6.70 6.15 5.35 3.45 1.85 1.50 1,531.40 4.20

Kurumlija 2.15 3.00 3.60 5.05 5.85 6.05 6.55 6.10 5.30 3.50 2.00 1.75 1,550.50 4.25

Pe 1.85 2.95 3.70 4.85 5.95 6.15 6.75 6.15 4.90 3.65 2.25 1.60 1,546.25 4.24

Pritina 1.85 2.90 3.70 5.25 6.30 6.60 6.95 6.30 5.10 3.35 1.90 1.60 1,578.25 4.32

Vranje 1.70 2.70 3.65 5.15 6.15 6.40 6.50 6.35 5.25 3.45 1.85 1.50 1,543.40 4.23

Loznica 1.50 2.30 3.05 4.35 5.30 5.75 6.15 5.60 4.30 2.80 1.45 1.20 1,333.50 3.65

Kragujevac 1.50 2.40 3.35 4.80 5.85 6.10 6.45 5.90 4.85 3.30 1.70 1.30 1,447.85 3.97

Negotin 1.35 2.05 3.25 4.85 6.05 6.60 6.95 6.25 4.75 2.90 1.45 1.20 1,453.35 3.98

Zlatibor 1.50 2.30 3.10 4.35 5.10 5.85 5.90 5.35 4.30 2.75 1.60 1.30 1,316.40 3.61

AVERAGE DAILY SOLAR IRRADIANCE ON HORIZONTAL SURFACE IN kWh/m

Average daily value

about 3.8 kWh/m

Average yearly insolation in Serbia

about 1,400 kWh/m


11/2011

Solar

Most promisin utilization options

Sanitary water heatingSpace heating

If each housing unit (2.65 million

units) would install average 4 m

of collectors

Equivalent to some saving

potential of

7,420 GWh


12/2012

Geothermal

Use of geothermal potential is mainly for

balneological purposes, sports and

recreation

Prospects for expanding geothermal

energy for agricultural heat and water

heating are reasonably good

Potential for larger scale geothermal

electricity is limited - requires water

temperatures above 100C.

Average geothermal flow density in

Serbia is higher than 60 mW/m

There are 160 natural resources of

geothermal waters (excluding Panonian

basin) with temperature above 15C

Highest temperatures recorded

Vranjska spa - 96CJoanika spa - 78C

Sijarinska spa - 72C

Total flow rate of geothermal water

resources is 4000 l/sec

60 locations are in the water reservoirs

up to 3000 m depth

Installed thermal

power (MWt)

Produced heat

(TJ/year)Residential and commercial areas 18.5 575

Spas and recreation 36.0 1,150

Gain drying 0.7 22

Greenhouses 8.4 256Fishing and cattle breeding 6.4 211

Industrial processes 3.9 121

Heat pump heating 12.0 80

Total 86.0 2,415


13/2013

Wind

Wind data

based on 10 metre heights

extrapolated to 50 metre heights

2,300 GWh

1,300 MW of capacity

at sites with minimal averagewind speeds of 5 m/s

Best locations in Serbia

(extrapolated)

Midzor 7.66 m/s

Suva Mt. 6.46 m/s

Vrsacki breg 6.27 m/s

Tupiznica 6.25 m/s

Krepoljin 6.18 m/s

Deli Jovan 6.13 m/s


14/2014

Wind Case Study: Popadija wind farm


15/2015

Barriers for wider use of RES

Institutional barriers

Lack of experienceNeed for the experience of how a private sector renewable energy project can work in

Serbia

Absence of first set of projects

Transition IssuesMany industrial companies are in transition both with regard to structure and

ownership, and managements are not yet ready to consider measures to rationalize

energy activities

Financial barriers

Absence of a price support mechanismRenewable energy projects are not bankable without a price support mechanism

RES cannot compete with fossil electricity generation based on lignite (whose price

does not reflect their environmental damage costs)

Debt Financing supportDifficulty to secure long term loans appropriate for small renewable energy projects

Electricity tariffLow electricity tariff does not stipulate domestic, commercial and industrial consumersto use renewable energy - current average price is under 5cents/kWh


16/2016

Barriers for wider use of RES

Technical barriers

Absence of technical standardsDespite the existence of manufacturers of heating equipment and biomass fuel

(briquettes and pellets), production standards are not regulated

Equipment for biomass energy utilization need clear information about technical

specification and performance characteristics

Barriers to biomass utilizationLow electricity price, which decrease motivation to install biomass firing boilers

No developed market for biomass fuel and biomass utilisation facilities

Absence of a renewable energy resources inventoryUpdate and development of Small Hydro Cadastre

Wind monitoring programe with wind speed measurements at 50 meters needed


17/2017

Regulation on privileged power producerswill be the definition of what types of

renewable energy producers qualify for

privileged status

Deadline for adoption: 1 J uly 2009.

Feed-in tariffs as the price support

mechanism

Deadline for adoption: 1 J uly 2009.

Legal regulation under preparation

Amendments to the Energy Law

drafting

Production, transporting, storaging and trading ofbiofules is recognized as energy activity

Definition of renewable energy sources is amplifiedand contains biofuels, biogas, landfill gas, sewage gas

Definition of biomass reffer to biodegradable materialdeveloped in agriculture, forestry and accompanyingindustry for energy purposes

Definition of privileged power producers includes allRES producers except hydro-power plants and

biomass power plants larger than 10 MW

Guaranteed grid access to a privileged powerproducers - through obligation of local distribution

company to purchase all the electricity produced fromRES

Purpose: to promote investments in renewable energy projects


18/2018

Assumptions for development of Feed-in tarriffs

a purchase price, expressed in c/kWh, is guaranteed and fixed during the 12-year period.The level of a purchase price is set to provide invested capital returned in 12 years, with

covering all operating costs incurred during the same period;

in case of power plants that have been in operation before the application of feed-in tariffs

proposed feed-in tariffs are valid for the shortened period of time

feed-in tariffs for old power plants that have been out of commission for at least five years

are separately defined, in order to encourage revitalisation and re-entering in operation of

these plants;

additional criteria for setting the feed-in tariff is to have the internal rate of return at least

14%, i.e. not below this percentage


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Investment incentives applicable to RES projects

INVESTMENT INCENTIVESIn case of investments in production facility, Government approve grant between 2000 and 5000 euros per

new job creation, minimal investment value is within the range of 1 and 3 million euros, whereas the minimal

number of new jobs is 50

An investor that invests in fixed assets, i.e. in whose fixed assets other entity invests over 600 million RSD(6.8 million EUR), and uses these assets for conducting business in Serba and during the investment period

additionally recruit at least 100 people - shall be exempted from corporate profit tax payments for the period

of 10 years proportionally with the investment made

TAX CREDITSA tax payer that made profit in newly established business unit in an underdeveloped area will receive a

corporate profit tax reduction in the duration of two years, proportional to the share of such made profit in

total profit of the company

ACCELERATED DEPRECIATION OF FIXED ASSETS

This incentive is provided for fixed assets that are used for the prevention of air pollution, water and soil

pollution, noise reduction, energy savings, forestation, and collection and utilization of waste for industrial

raw materials and fuels

FOREIGN INVESTMENTS INCENTIVES

The law on foreign investments stipulates free import of goods that are the foreign investors nominal capital(founding capital) providing it fulfils acts regulating environment protection. Import of equipment as thefounding capital of a foreign investor, except for passenger motor vehicles and game & gambling machines,

is free from customs and other duties. Besides, a foreign investor and a company with foreign founding

capital are entitled to tax and customs related deductions in line with the law


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00stojadinovic Serbia Enhancing Energy Efficiency